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While better than last year, city starting more than $830,000 in the red

THUNDER BAY --- The city is monitoring spending and trying to delay and defer hiring as it starts the year more than $830,000 in the hole.
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Coun. Rebecca Johnson (Jamie Smith, tbnewswatch.com)

THUNDER BAY --- The city is monitoring spending and trying to delay and defer hiring as it starts the year more than $830,000 in the hole.

A first-quarter variance report shows more than $505,000 of the shortfall comes from winter control overages, $21,800 from the Thunder Bay Police Service and $157,000 from early leave, fringe benefits, death and termination costs.

"We’re not off to a good start for the year,” Coun. Rebecca Johnson said.

But she pointed out that it's better than where the city was a year ago, when it was more than $1 million behind by the end of March.

At-large Coun. Iain Angus said given that only twice in the past decade has the city's variance ended unfavourably, including last year when the city wound up spending $3.6 million more than initially planned, he trusts the city will have it sorted out by the end of the year.

"I think we have a fair bit of confidence in administration,” he said.

Council was also given the city's non-consolidated financial statements, which shows total assets of $271.9 million as of the end of 2014.

Cash and investments have dropped $33.1 million to $44.6 million from last year mainly due to a $9.5 million decrease in reserves, a $16.9 million increase in capital financing and another $5.7 million drop in accounts payable.  

Capital expenditures went up more than $10 million from 2013 to $93.6 million last year.

Around $35 million of that is for environmental services, which includes everything from sewers to $11.8 million for ongoing work from the May 28, 2012 flood.

Another $27.8 million was for transportation services, which is everything from roads to traffic lights. The $11 million listed for recreation and cultural services included the proposed event centre design work and upgrades at various pools, arenas and golf courses. Another $7.8 million designated for protection to persons and property included the two new fire stations and emergency vehicle upgrades.

General government, from computer software to corporate facility upgrades, cost $3.5 million while $3.3 million spent on health services included $1.5 million for the Thunder Bay Regional Research Institute, money originally approved in 2010, as well as equipment and building upgrades.

The remaining $800,000 went to maintenance at the city-owned Pioneer Ridge senior home and for a new roof at the 55+ Centre.





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