To the editor:
Interesting to read the news release from city hall stating that the city will be enjoying a favourable budget variance of $2.7 million for year end 2016.
On Oct.31, 2016 city administration undertook cost-cutting measures to reduce the projected year-end unfavourable variance which should have basically brought in a balanced budget but turns out to be $2.7 million in our favour instead.
One of those cost-cutting measures involved using cost carry forwards of about $1 million that could have been used to reduce the cost of future capital projects. The other big-ticket item was to defer some $1 million worth of capital projects from 2016 to lower the projected unfavourable variance. These cost-saving measures amount to nothing more than future costs to residents, but look good on the balance sheet.
I suggest city council re-open the 2017 city budget -- and yes it can be done -- and use the favourable variance to reduce the tax-levy increase and cover the $2.7 million that they are taxing residents to be put into operating reserve funds for 2017.
Henry Wojak,
Thunder Bay
