Regional deficits, surpluses projected
By Chris Jones/The Oshawa Express
A budget status update from the region indicates some departments may be well above or below financial expectations.
The report shows that the health department has saved approximately $1.5 million in the mandatory program budgets through July 31.
The report attributes the high surplus to “savings resulting from staff vacancies and the time lag associated with the hiring of replacement staff.”
However, this is expected to be cut in half as the paramedic services is expected to have a deficit of approximately $795,000. This is due to the increase of staff costs as well as Bill 148, with “the most significant impact due to the legislative change to include [PTSD] claims within WSIB coverage.”
Overall, the health department projects to have a surplus of approximately $750,000.
The report also states that the Ontario Works (OW) Program Delivery budget projects to have a surplus of approximately $625,000.
“While client related expenditures in the OW Employment Support accounts are trending above budget, there are personnel savings in the Administration section of the program that more than offset this over expenditure,” reads the report.
The OW Employment Support Program Delivery surplus has offset the deficit of $400,000 from the Ontario Works Financial Assistance Program.
Housing Services reports that “they are tracking near budgeted expectations” and are expected to break even.
Overall, the Social Services Department is projected to have a $250,000 surplus.
Police Services, the region’s largest expenditure, is projected to break even by the end of the year.
“For the seven months ending July 31, net spending of $106.54 million represents about 54 per cent of the annual operating budget of $198.92 million,” the report reads.
The report also says that there are savings from position vacancies, but these are expected to “be offset by higher benefits, including member retirement costs, and legal and consulting services.”
User revenues for the water supply are projected for a surplus of $750,000.
On the other hand, solid waste management is forecast to have a deficit of approximately $1.5 million.
The deficit is largely attributable to the fact that the winter maintenance program has already almost reached its budget of $10,015,000.
Currently the spending by the winter maintenance program is already at 83 per cent of its budget, sitting at $8,351,000.
“With year to date expenditures running over expectations, and should the winter control spending for the remainder of the year reflect that of prior years, a deficit in the range of $1 to $1.5 million could materialize,” reads the report.
Even though it is difficult to predict, revenue from recyclable materials could create a deficit of approximately $700,000 by year’s end for the regions blue box program.
Through July, major repairs and bus expenditures have trended higher than last year. The maintenance budget for 2018 was increased by approximately 16 per cent to make up for any anticipated increase in spending.
“However, a $200,000 deficit position for bus repairs and parts is forecasted at this time,” reads the report.
DRT is also projected to be $150,000 over budget.
“At this stage in the year, a $150,000 deficit position, less than 0.5 per cent on a net budget of $55.8 million, is expected in 2018 transit,” reads the report.
So, while this may seem like a high number, according to the report the deficit is but a small percentage of the overall budget for the DRT.
Despite these heavy deficits in certain programs, the overall general tax revenue is expected to be a surplus of approximately $250,000 against the $150,000 deficit from the DRT. This means that the city is projected to make approximately $100,000 from general taxes.