THUNDER BAY – The City of Thunder Bay is projecting a positive third-quarter variance of more than $3.7 million.
However, city manager Norm Gale cautioned it’s really just a drop in the municipal bucket.
The savings, $2.8 million from tax-supported operations and $965,900 from rate-supported sources, represents just 1.16 per cent of the city’s $243.3 net budget.
“What this means is it’s positive news indeed, but the variance is small compared to the size of the budget. It reflects the good work that’s happening with our finance team and our senior executive team in finding appropriate funding for appropriate funding lines,” Gale said.
The lion’s share of the variance, about 50 per cent, come from savings realized in the insurance and legal cost areas, Gale added.
Corporate insurance is projected to have a favourable variance of $1.2 million. Additionally the city believes it will earn $500,000 more in interest that originally noted. On top of that Thunder Bay Police Service is projected to spend $403,700 less than planned, due mainly to labour savings. Debenture debt charges will be $360,000 less than budgeted for, if current trends remain in place. The city will spend $230,000 less on legal fees than it expected to spend and will also earn $191,000 more in parking revenue, mostly because of increased use of the waterfront parkade, parking tickets and money recouped from the Ministry of Transportation.
On the negative side of the ledger, development and emergency services is expected to cost $327,700 more than planned and Superior EMS, mostly because of an increase in WSIB presumptive legislation costs.
Thunder Bay Fire Rescue costs are projected to be $255,000 more than budgeted for similar reasons, though the number for both departments would have been much higher had the city not found $162,000 in savings within other divisions of development and emergency services.
Ongoing costs related to the relocation of the District of Thunder Bay Social Services Administration Board added $266,700 to the budget, while tenant vacancies at Victoriaville Centre cost taxpayers $113,500 more than allotted for in the third quarter, which comes to a close on Dec. 31.
If the projections hold true, the city will transfer a total of $1.9 million to top up three reserve funds, $1.2 million to the insurance reserve fund, $427,000 for winter control and $230,000 to the legal fees reserve fund.
Under rate-supported operations, most of the savings can be pinpointed to lower overtime costs in the waste water division, totalling $684,200. Waterworks will cost $281,700 less than budgeted for, with lower overtime costs given as the primary reason.
The projections are as of Sept. 30.
