SASKATOON – The City of Saskatoon is forecasting a net deficit of $1.04-million for the first quarter of 2015. Contributing to the shortfall was a decrease in transit ticket sales and discounted passes which were issued to make up for the transit dispute last fall.
“Much of this first quarter projected deficit can be linked to costs for increased street sweeping in the Business Improvement Districts and the industrial areas, as well as a revenue reduction from a decrease in Transit ridership, that compounded by a shift to discounted bus passes from regular fares,” said the city’s CFO Kerry Tarasoff.
Transit losses were estimated at $1.17-million, and the increase in street sweeping cost an additional $519,000.
Also contributing to the deficit were snow removal costs, which came in $461,000 over-budget.
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Tarasoff said it is still an early projection and subject to change as the year proceeds.
“This projected deficit is early in the fiscal year and open to many variables that can change over the course of the year,” explained Tarasoff.
“By examining our numbers now, we can identify solutions to recover costs and eliminate a deficit before year-end.”
City administration stated they will be taking all reasonable measures to bring in a balanced budget at year-end.
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There were savings to be found in the first quarter. Gas was cheaper then what the city had originally calculated, creating $300,000 in savings.
The city is also anticipating a surplus of $1.06-million in taxation and general revenues, which is attributed to increased payments from the provincial utility franchise fees.
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