Continued job vacancies at city hall are a big part of why Sarnia could see a nearly $3-million surplus by the end of 2022, a recent city finance report says.
But staffing shortfalls could be hurting the city when it comes to capital projects, Mayor Mike Bradley added.
High levels of capital spending without increases in staffing have meant several project tenders have gone out later in the year, contributing to delays and cost increases, city engineering and operations general manager David Jackson said recently.
In another report, city officials note a handful of projects this year, such as $2.6 million in watermain replacements, have been delayed in part because staff can’t keep pace with the amount of work.
“If the capital program remains at these levels moving forward, staffing levels will need to be reviewed to ensure resources are in place to deliver them efficiently,” the report says.
The projected $2.88-million surplus, representing about 1.8 per cent of the city’s $162.4-million combined budget on the year, owes $2.1 million of the projected extra cash to salary, wage and benefits savings due to vacancies, a report from city finance staff says .
What jobs in the corporation remain vacant wasn’t clear in the report.
Other contributors include nearly $700,000 in Safe Restart grant funding, better recycling revenue and delays in software implementation, it adds.
Line items that are costing more than expected include fuel for transit, and sewer building maintenance and chemicals, staff reported. The report also noted revenue from arenas, sports fields and the Strangway Center has also dropped by more than $400,000 against what was budgeted.
The financial update is for the period ending Sept. 30.
“All the municipalities are having trouble recruiting professionals,” said Bradley, noting part of the reason is the private sector tends to be more lucrative.
Relatively high unemployment has also made it generally difficult for employers to hire, Sarnia Lambton Workforce Development Board officials have said.
“That’s not something we can control, but it does concern me that, if council is giving approval to capital projects, then we should execute and get those projects built if we possibly can,” said Bradley, renewing his pitch for restraint in looming city budget setting amid high inflation and threats of a recession.
“All we’re doing is building up our own deficit on capital spending, which is not a good thing to do,” he said.