1

September 1, 2015Finance and Economic Development Committee

Q2 2015 Operating Status andYear-End Forecast

2

2015 Year-End Forecast

§ $34 M forecasted deficit in tax supported services, excluding Transit, Police, Library and Public Health, from:§ Winter Maintenance activities § Arbitrated settlements§ Additional WSIB work related illnesses

§ $7 M forecasted deficit in rate supported services from:§ Cold weather and frozen pipes§ Lower water consumption

3

Strategies to Cover the Deficit

§ Hiring and discretionary spending freeze

§ Capital project closure or reduction to return funds to the City Wide and Rate Reserves

§ 2015 Disposition Report in March 2016 will recommend use of reserve funds to cover deficit

4

2016 Budget Implications

§ Additional costs from settlements and WSIB need to be covered

§ Winter maintenance accounts need to be adjusted

§ Water consumption estimates need to be reduced

5

Questions?