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$2.5M over budget

The city is on pace to be $2.5 million over budget but projects that number will be less than $1 million by the end of the year. City council will hear a second quarter variance report from administration Monday night.
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City manager Tim Commisso thinks the city will find more savings this year. (Jamie Smith, tbnewswatch.com)

The city is on pace to be $2.5 million over budget but projects that number will be less than $1 million by the end of the year.

City council will hear a second quarter variance report from administration Monday night. As of the end of June, it looks like the $213 million budget will be around $906,000 over Dec.31. While around $2.5 million is reported, City Manager Tim Commisso said reserve funds and cost savings will help trim it down.

Infrastructure and operations takes up more than $1.5 million of the unfavourable variance, with more than $1.3 million of that due to winter’s extended stay in the city this year. But with the city’s winter control reserve fund in excess of $2 million, Commisso said the costs should be covered unless the snow flies early.

“If we get a bad fall we’ll have some issues,” he said.

Legal services weighs in next with $435,000. Some big files, including a coroner’s inquest into the deaths of First Nations youth, a class action lawsuit due to last year’s flood and Resolute’s tax assessment are contributing to the increase.

Although Superior North EMS reports is on the books for $315,000, a recent confirmation that the province will fund a new ambulance knocks that down to $130,000.

Winter control wasn’t’ the only thing hit by bad weather as a late start to the golf season has that department looking at an extra $150,000 by the end of the year. A late start means less rounds and less revenue

“Just because it’s not been the best year for that,” Commisso said.

The city is continuing its cost containment process with a $1.5 million target this year. Commisso said it only has another $150,000 to meet that. Every department looks for ways to save money from fuel savings to new grants.

“I’m confident we’ll find that probably by the end of September,” he said. “The challenge is it gets more difficult every year to find those savings without impacting services.”

The city is also going to continue its core business review, deciding what businesses it should stay in. Commisso said that will be discussed with council in a closed session first.





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