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City posts positive first quarter variance

Thunder Bay reports $417,000 positive first quarter variance as city police force comes in under budget.
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THUNDER BAY – The city’s books are in the black through the first quarter of 2017.

The year’s first budget variance report was presented to Thunder Bay city council at Monday night’s meeting, which shows a surplus of $417,000 as of March 31.

During this year's budget process, city administration billed the spending plan as one that would provide funding to areas that were chronically in the red to protect against negative variances.

Coun. Frank Pullia, the city's budget chair, noted the result is an improvement compared to the first quarter of 2016 but acknowledged there is a long way to go in the year. 

"When we're looking at the continuous improvement efforts our city and our administration are doing, we are mindful of potential risks out there," Pullia said. "There are certain things we can't control."

One of the biggest drivers is the Thunder Bay Police Service, which is under budget by $390,000. That is credited to decreased labour costs, though the report notes some of those savings have been offset by revenue shortfalls.

"The police are very mindful that we have adjusted the budget and they need to stay within the budget as much as possible, given that certain things you can't control," Pullia said. "There is more long range planning, there is a more focused effort on finding savings. If you go over in a certain area you have to find it in another area."

As well, the corporate services and long term care division as well as the development and emergency services department are forecasting a favourable variance of $113,000 as a result of staff vacancies.

Those surpluses have been partially offset by overruns from the Victoriaville Centre, which is projecting a $120,000 negative variance due to several vacancies within the facility and increased utility costs.

Also, the city solicitor’s department posted a deficit of $60,000 because of “position re-evaluations, recruitment costs and legal library expenses.”

The $417,000 positive variance represents 0.17 per cent of the city’s total $243.7 million net budget.



About the Author: Matt Vis

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