Thunder Bay councillors heard Monday night how the city budget for 2016 is already veering into the red by several hundred thousand dollars.

Administration projects the budget has an unfavourable variance of anywhere between $386,000 and $768,300, which works out to somewhere between 0.2 and 0.3 per cent of the city's overall $235.1M budget.

"I am not that alarmed," said Northwood Councillor Shelby Ch'ng.

Image | Shelby Ch'ng

Caption: Northwood Councillor Shelby Ch'ng says she's not worried about a budget variance at this point in the year. (Shelby Ch'ng)

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"I'm not concerned with the amount of money."

Council heard how the majority of the shortfall is due to overtime from police, who have dealt with standoffs and homicides for the first three months of the year.

The other cause for the shortfall is insurance claims.

Councillor Trevor Giertuga had one suggestion to try and get ahead of any potential budget shortfalls.

"Are we giving any consideration to getting the budget done early this year?"

Giertuga noted that the budget is generally passed in February or early March, meaning variances have already occurred before city council has even finalized the annual budget.

Council heard how Thunder Bay Police are trying to change staffing levels to bring down costs.

"I can tell you however that we are moving to hiring more civilian staff, particularly special constables," said Deputy Police Chief Andy Hay. "Which will mean as attrition occurs, we can phase out a number of sworn officer positions and civilianize them."

Hay said police are also attempting to hire more part-time staff, to help cover sick leave and vacation schedules, instead of paying staff overtime.

Council also heard how work on Balmoral Street will have to be scaled back for this year. The city planned on rebuilding a section between the Neebing-McIntyre Floodway and Alloy Drive.

The work will be only done up to Hewitson Street, because the cost of the project came in $2,700,000 higher than anticipated, due to additional storm sewer work, and the addition of a multi-use trail.

The job will be done in three phases, over the next three summers.