Mid-year deficit not a concern, says Cambridge Mayor Doug Craig

The City of Cambridge is running a deficit of about $500,000 but Mayor Doug Craig is confident they will end the year on budget.

"It's not all that unusual. Last year, we had a deficit halfway through the year, ended up with a surplus at the end of the year," Craig said Friday in an interview with CBC KW's The Morning Edition host Craig Norris on Friday. "You try to predict what your budget's going to be and there's always spikes and deficits during the year."

• Coverage of the Cambridge multiplex from CBC KW

A staff report presented to council this week showed expenditures were above budgeted amounts as of June. The fire department's overtime costs were the majority of the deficit, making up $330,000.

The staff report said the the tax-supported deficit in June was $562,216 and that included:

• $330,000 increase in fire overtime costs.
• $61,000 increase in animal control program due to decreased revenues and increased contract costs.
• $42,700 increase in outside legal counsel for the office of the city manager.
• $42,500 decrease in bookings in facility and rooms, including hall bookings and summer ice time.
• $25,000 higher than expected parking lot snow removal costs
• $14,900 for a lost appeal with the Canada Revenue Agency in HST treatment of sports insurance for the period between 2011-2016.

Craig said staff will take a look at budgets regularly to make sure they're on track and work to even it out as best they can.

But sometimes, revenue that was budgeted for doesn't actually come in, such as rental costs for facilities or summer ice.

"Things like hall rentals for teen dances are way down, things like that that we didn't expect. So you just try to adjust," he said. "I have all the confidence in staff we will come back in pretty close, if not on budget, maybe a surplus."