Budget deficit projected for 2023: Sarnia city hall

After three years of budget surpluses in Sarnia, city hall is projecting a relatively small deficit for 2023.

Aging facilities needing more maintenance, more storms, a major water main break last winter, the end of provincial and federal COVID-19 relief fundinghas new hire for storm and wastewater systems oversight and a delayed library project largely balance against savings from ongoing job vacancies at city hall, for the $92,000 deficit forecast, based on six months of data.

Details are outlined in a city report.

“We’ll see where we actually end up in the end, but there are a few pressures that are unique this year,” said engineering and operations general manager David Jackson.

One was a $320,000 water main break on Vidal Street South in February, for which the city needed an emergency purchase order, and that took weeks to fix, he said.

“It is hard to forecast winter maintenance,” Jackson said. “Really weather dependent.”

And after a rainier than usual year, more overtime than budgeted for staff involved in the storm sewer system is the projected result, he said.

Inflation is also a factor, he said.

“So as contracts come up for renewal, we’re seeing much higher prices, including fuel surcharges, labor costs going up,” he said. “All those pressures are impacting the budget.”

Aging city facilities mean more maintenance costs, projected at $372,000 over budget by year’s end.

“The reality is many of the city facilities are getting near the end of life or at the point requiring significant rehabilitation,” Jackson said.

“So we are seeing significant costs now” when it comes to equipment breaking down and repairs, he said.

“So we’re looking at capital budget time to try to increase the reinvestment into those facilities.”

An extra $76,000 for one more year of rent at Mall Road library also factors in, after a Clearwater arena renovation project, to where the books and other library materials will be moved, was delayed earlier this year.

Expectations are the new library — county officials are recommending city council approve calling it Clearwater Library — will open early in the new year, Jackson said.

The overall deficit projection is 0.05 per cent of the city’s $171.7-million budget for 2023.

Surpluses the past three years have been around $3-$4 million each.

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