Sudbury's budget in the red due to winter maintenance, bus repairs
City plans to draw from three reserves to make up estimated $2.1 million deficit
The City of Greater Sudbury is already planning to draw from its reserves to make up a projected deficit of $2.1 million this year due to high costs associated with maintenance during last winter's heavy snowfall.
Sanding, salting, plowing, snow removal and sidewalk maintenance cost the city approximately $1.8 million dollars during the first four months of 2016, according to a recent report.
The city can address the over-expenditure by drawing money from a roads winter control reserve fund. The remaining $300,000 could then be taken out of a tax rate stabilization reserve and a capital financing reserve fund.
But winter control activities are not the only factors straining the city's budget.
Bus repairs and maintenance have cost $600,000.
New buses should 'correct' repairs and maintenance budget
The city should be able to mitigate this issue by next year as it plans to add 11 new buses to the fleet, according to manager Ron Henderson.
"Twenty per cent of our fleet will be brand new. That will, obviously, allow us to eliminate 11 high mileage buses," he said.
"So, my expectation is that the repairs and maintenance budget will correct itself."
The city has ordered five new buses. Six others come from a recent investment by the federal government.
User fee hike may be coming
There is also an over-expenditure of $420,000 from leisure services because of increased use of community halls by non profits, a shortfall in arena revenues and a longer ski season.
Staff are aware of the issue and may consider hiking user fees, according to manager Catherine Matheson.
"We have to really look at how much we're charging for the use of the ski hills and the season passes because we're continuing the expenses, but the passes are consumed with respect to the user fee on a one time basis," she said.
"Within the community halls, we're looking at a different way in which to manage that by utilizing more services of our existing staff versus contracting out some expenses that are happening currently."