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City projecting 14M surplus in 2018

Ottawa City Hall generic
Ottawa City Hall generic
The City of Ottawa’s secondquarter financials have been calculated and, so far, the City appears to be in the black.

The City of Ottawa’s second-quarter financials have been calculated and, so far, the City appears to be in the black.

In newly-prepared documents for next week’s Finance and Economic Development Committee meeting, City Staff say, as of June 30, municipal departments are showing a surplus of about $7.6 million.

Some of the savings the City has found come from vacant job positions and lower than expected bank fees. The City also made $1.4 million in the first two quarters from the sale of surplus land and $1.6 million in investment income.

There was a $1.8 million deficit in the Community and Social Services department, which staff say is the result of sick-day expenses, 24/7 staff coverage, and an increase in housing services requests.

Looking ahead to the end of the year, staff predict a $14.4 million surplus, owing in large part to investment income, and lower than predicted costs for things like bank fees, hydro, gas, as well as savings from vacant job posts.

A couple of departments do see red ink. The $1.8 million deficit in Community and Social Services is expected to balloon to $5.7 million by the end of the year, again because of staffing and housing costs. There is also projected to be a $475 thousand deficit in the budget line for elected officials, because of severance payments for councillors who are not seeking re-election.