The rising price of fuel is going to cost Great Sudbury about $1.5 million in unbudgeted costs this year, according to a budget update headed to the finance committee next week.
And the pain could grow, said the staff report, since the city has agreements with contractors that includes a cost escalator if gasoline prices rise.
The report headed to the committee July 12 outlines budget pressures from the first quarter of 2022. Other major variances include $560,000 overages in the fire fighting budget, largely due to overtime costs "due to staffing requirements, training, and on-going absences (including sick time, WSIB, vacation, etc.)," the report said.
The winter control budget is $1.2 million over, caused by "a variety of extreme weather conditions causing an increased need for plowing and an increase in road deterioration requiring increased pothole patching activities," the report said.
Revenue lost to the COVID-19 pandemic has put the leisure service department in the red by $590,000, mostly due to closed pools, arenas and fitness facilities.
However, it's not all bad news. A rebound in the global recycling market means revenue from the sale of recycled material is $1.2 million higher than expected. Taxation revenue is $303,000 higher than forecast and the water/wastewater department was $665,000 under budget.
Read the full report here.
The next budget update in Sudbury will take place in September, just before the October municipal election.
