Sudbury ends 2022 fiscal year $300K in the red

A Greater Sudbury sign is pictured in this undated photo. (File)

A recent report to city council in Greater Sudbury said an array of fiscal challenges left the city with a $300,000 deficit for the fiscal year ending June 30.

Some city departments reported massive budget overruns, while others spent far less than forecast. Most of the variances were related to continuing upheaval related to the COVID-19 pandemic.

The biggest single deficit was $1.3 million in the roads department, formally known as 'linear infrastructure maintenance.

"This is largely due to a variety of extreme weather conditions causing an increased need for plowing and an increase in road deterioration requiring increased pothole patching activities," said a staff report on the shortfall.

Such gaps are made up by under-expenditures in other areas, such as $1.8 million revenue in the landfill/recycling budget, realized largely because of a rebound in recycling market brought in $1.1 million more than expected.

The most common variance is related to revenue not bouncing back as quickly as expected after the pandemic. For example, parking and bylaw services were short $290,000 because parking fine revenue was lower because fewer cars than expected parked downtown.

Delays in reopening facilities led to a $1.3 million shortfall in the leisure services, offset by an under-expenditure of $550,000 in things like fuel and staffing costs.

Some departments, however, had major deficits not related to the pandemic. Fire services, which frequently reports cost overruns due to overtime costs, came up $670,000 in the red, with overtime accounting for $570,000 of the total.

Elsewhere, 84 water main breaks in the city in the first six months of the year helped the water/wastewater department run a $320,000 shortfall.

"This compares to an average of 47 over the same period during the previous three years," said a staff report on the shortfall.

More recently, rising energy costs are presenting a challenge, the report said.

"Fuel prices in Canada began to increase in December 2021 with price increases exacerbated after Russia launched a military invasion of Ukraine on Feb. 24," the report said.

"It is estimated that rising fuel prices could lead to a corporate-wide over-expenditure of $1.5 million based on trending rates for city fleet and natural gas used in facilities. Estimates for 2022 fuel expenditures are included within the operating department projections."

The operating deficit will be paid by using reserve funds. Read the full report here.