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ResolutionThat the City of Greater Sudbury accept the July 31, 2013 Water Wastewater Variance Report dated October 1, 2013 from the Chief Financial Officer/City Treasurer and the General Manager of Infrastructure Services outlining the projected year end position.
YEAR END VARIANCE
The year end surplus for Water and Wastewater Services is projected to be $145,421 as outlined in Schedule A. Water is projecting a deficit of $199,236 while Wastewater is trending to a surplus of $344,657.
The major contributors to this surplus are:
Actual user fee revenues are trending toward budgeted amounts. For 2013 the estimated consumption has been budgeted at 14.3 million cubic metres. Based upon information provided by GSU, it is estimated that the consumption will be approximately 14.3 million cubic metres. This is still an estimate as final consumption numbers will be known in early 2014.
Salaries and Benefits
Salaries and benefits are projected to be under budget by approximately $776,000. The division experienced staff turnover and in some cases were / are unable to successfully fill those specialized vacancies on a timely basis. Additional savings relate to the fact that the division was unsuccessful in recruiting a temporary staff position, which was subsequently contracted out. As well, overtime is being strictly managed and is being kept to a minimum by all sections within the division and the use of casual labour has been reduced where possible.
Materials are projected to be under budget by $464,000. This is a combination of savings in chemicals, break down repair related materials and other plant related maintenance savings.
Purchased service costs are projected to be over budget by $1,078,600.
There have been 65 watermain breaks to the end of June. This compares to 2011 when there were 67 through the same period, but in contrast to 2012 when only 34 breaks had been repaired through the month of June. It is estimated that emergency repairs of both water and sewer related infrastructure will be over budget by $1,300,000. Contributing to this overage are repairs being performed by contractors in light of aforementioned staff vacancies.
Offsetting this are projected savings of $200,000 related to the road restoration contracts being tendered under budget.
The final year end water deficit will be funded by contributions from the Water Capital Financing Reserve Fund while the wastewater surplus will be contributed to the Waste Water Capital Financing Reserve Fund in accordance with the By-law.