THUNDER BAY – The city now faces a budget shortfall of more than $3 million.
An executive summary on the 2016 budget variance posted online Monday morning ahead of tonight’s city council meeting shows that as of June 30 administration is projecting an unfavourable variance of about $3.2 million.
The report blames external legal fees, insurance costs and police activities as reasons for the shortfall, which represents 1.4 per cent of the total net budget of $235 million.
In response to the estimated variance, city departments are being asked to defer to 2017 or eliminate city-funded vacant 2016 expansions. All other vacant positions are being looked at for possible deferral.
The city is also being encouraged to review all non-essential capital project for either eliminations or possible re-budgeting.
The entire executive summary report can be read here. Tbnewswatch.com will have a full story with reaction after tonight’s council meeting.
