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City's first-quarter variance shows $830K shortfall

THUNDER BAY -- The city is projecting it will be $832,300 in the red by the end of the year. A first-quarter variance report heading to city council Monday night states on the operating side, $505,600 of that is from winter control.

THUNDER BAY -- The city is projecting it will be $832,300 in the red by the end of the year.

A first-quarter variance report heading to city council Monday night states on the operating side, $505,600 of that is from winter control.
"Although winter control costs have been lower than in 2014, the freeze-thaw cycle and multiple weather events have continued to have a significant impact on spending," the report states.

The city's winter control spending is based on a five-year average. Back-to-back harsh winters depleted that budget and the reserve fund that holds any unspent money from milder winters. Administration said it's developing a multi-year budget stabilization strategy.

Budget chair Coun. Frank Pullia said the city needs to find a better way to do business.

"Last year we didn't have that much of a snowfall so we should've been able to find some savings there," he said.

"We can't continue to get to the end of the year and find unfavourable variances."

"The first quarter if you know you're going to start going off the rails you have to start taking corrective action."

Revenue, materials and labour have Thunder Bay Police Services takin gup another $218,300 of the unfavourable variance. It has now put strict restrictions on overtime and discretionary purchases.

The other $157,400 is due to early leave, fringe benefits, death and termination costs.

"This expenditure fluctuates widely based on when employees, particularly Fire, decide to retire and receive their contractual lump sum compensation payments," the report states.

It's another area where administration is developing a multi-year stabilization strategy.

Despite the costs, the city thinks it could actually be in a positive financial position by year's end due to opportunities for budget restraint. Pullia said administration needs flexibility from council to find savings but mainly in order to be on budget by the end of the year.





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