Owen Sound’s capital and operating deficit of approximately 400 thousand dollars has been eliminated.
And steps are being taken to ensure such a shortfall does not happen again.
The deficit carried over from 2009 but the amount was not known at the time the 2010 budget was being set.
What’s become clear is that there are various reasons why the deficit happened.
A report by Financial Services Director Wayne Ritchie says revenue targets throughout the corporation were not met, WSIB costs were more than budgeted, interest earned was less than budgeted, and costs in roads maintenance and waste management were also higher than budgeted.
Many building expenses were also over budget due to provincial benefit charges added to the city’s hydro accounts.
City council has approved a plan by Ritchie to wipe out the deficit that involves tapping a number of city reserve accounts:
$85,000 from WSIB reserve; $50,000 from the developers trust; $25,000 from the airport; $75,000 from works equipment; $50,000 from parks equipment; $25,000 from cemetery equipment; $55,000 from landfill; $34,000 from future development; and $10,000 from Coliseum equipment.
Ritchie assures council that all reserves remain at acceptable levels and these withdrawals will not hamper the city’s ability to function as usual.
But Ritchie says such a move would not be encouraged in the future, and steps are being taken to ensure it would not need to be considered.
He says the operations department had a small surplus as of the end of June, and tighter budget controls are in place through the end of this year.
Mayor Ruth Lovell Stanners says all city departments are being required to keep Ritchie up to date as to their expenses.
