May 24, 2017 - A deficit management strategy introduced in summer 2016 allowed the City of Thunder Bay to end the year with a favourable variance, or surplus, of $2.7 million.

"In light of an unfavourable variance projection in July 2016, Administration was directed to put in place a deficit management strategy," said Norm Gale, City Manager. "The strategy involved making hard decisions to reduce costs without affecting services. This, coupled with restraint and higher than expected revenues, resulted in a surplus on the City's 2016 budget."

Linda Evans, General Manager - Corporate Services & Long-Term Care and City Treasurer advises the variance is comprised of the following:

Capital savings ($2.4 million):

  • release of nearly $1.0 million in carry forwards for capital projects budgeted prior to 2016 that were either complete and/or not proceeding in the next two years
  • reduction of just over $1.0 million to be re-budgeted in future years 
  • reduced contribution of $438,000 to the Corporate Information Technology reserve fund

Operating savings ($0.3 million):

"¢ lower unfavourable variances in Police Services, Legal and  Insurance costs
"¢ deferred hiring
"¢ higher than forecast revenues, offset by increased taxation-related expenses

Administration is recommending to City Council at Monday's Committee of the Whole that the surplus of $2.7 million be transferred to reserve funds as follows:

  • $1.1 million Stabilization Reserve Fund
  • $1.0 million Capital General Reserve Fund
  • $600,000 WSIB Reserve Fund

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Contact: Stacey Levanen, Supervisor - Corporate Communications, 625-3650