The City of Greater Sudbury ended 2023 with a year-end surplus of $3.1 million against an operating budget of $782.8 million.
The year’s net year-end operating budget surplus will be added to city reserves, joining an additional $5.95-million contribution to city reserves last year.
Variances between last year’s municipal finances and the 2023 budget are summarized in a report to city council tabled this week for their June 18 finance and administration committee meeting.
Last year’s finances were boosted by higher-than expected investment earnings, which totalled $37.9 million. Various over- and under-expenditures cropping up throughout the city’s 2023 year-end operating budget variance report, with explanations.
Vacancy management (leaving positions vacant when staff members depart) resulted in $2.9 million in savings last year, which fell short of the $3.3-million goal city council agreed to as one of various measures to pare down the 2024 tax levy increase.
“Vacancy management is difficult to address on a corporate-wide level because it relies on unpredictable variables such as employee absence and retirements in services that can accept a temporary reduction in staff capacity,” according to the report. “While efforts were made to minimize service impacts, managing vacancies in this way can reduce responsiveness and place additional strain on staff.”
Staffing was a key contributor to several variances, including an under-expenditure in salaries of $741,000 in Legal and Clerk Services due to “difficulty in finding candidates that meet the hard qualifications of vacant roles.” Social Services recorded a $1-million under-expenditure “due to staff absences, retirements, and difficulty recruiting in the current labour market environment.” The city also experienced challenges filling vacancies in various other departments.
Fire Services was over budget by $742,000, mainly due to an over-expenditure of $636,000 in salaries and benefits, including overtime costs. Overtime costs have been an ongoing issue with Fire Services and was a key rationale behind last year’s city council decision to hire four additional full-time firefighters.
Linear Infrastructure Services was over-budget by $5.2 million due increased fuel costs, emergency culvert and storm sewer repair and asphalt patching, as well as above-average snow accumulation in the first four months of 2023.
GOVA Transit’s record ridership numbers yielded a net revenue surplus of $290,000.
For the full 2023 Year-End Operating Budget Variance Report, click here. The finance and administration meeting for which the report has been tabled will take place on June 16 beginning at 6 p.m. It can be viewed in-person at Tom Davies Square or livestreamed by clicking here.
