According to the 2024 budget monitoring report, the City of St. Thomas ran a deficit of more than $2.7 million, significantly higher than original estimates.
The details were contained in a report from Dan Sheridan, the city’s finance director, presented to members of council at Monday’s (July 14) meeting.
He noted the final deficit was much higher than projected because some revenue lines did not meet expectations in the second half of the year.
Of the 15 streams feeding into the city’s overall budget, seven of them ran up deficits in 2024, in some cases, significant amounts.
The St. Thomas Police Service is looking at a $1.5 million shortfall, environmental services $851,000 and the fire department $740,000.
Two departments did generate significant surpluses: Valleyview Home at $241,000 and Parks, Recreation and Property at $228,000.
Included in Sheridan’s report is an analysis from Police Chief Marc Roskamp, who notes, “The budget deficit for 2024 is largely the result of an anomalous surge in public safety pressures that emerged unexpectedly over the course of the year. Driven by a thriving community and therefore an increased complexity in community policing needs.
“The City of St. Thomas experienced an exceptional rise in demand for policing services in 2024. Since 2022, the STPS has experienced a 12 per cent increase in calls for service requiring police attention. The violent crime severity has risen 7.6 per cent, which has been our priority focus for daily deployment strategies.”
Roskamp adds, “These unprecedented demands placed acute operational pressures on the St. Thomas Police Service, particularly with respect to staffing levels, response capacity, and compliance with provincially mandated adequacy and effectiveness standards.
“In order to continue delivering core policing services and maintain public safety, the STPS was required to respond swiftly with critical adjustments to its workforce and operational resources.”
Two other factors were tax write-offs related to the city’s new industrial park, Yarmouth Yards, and tax incentive rebates for new builds were over budget.
Sheridan concluded, “It appears that there are a number of areas that require budget increases to maintain service levels, which will put upward pressure on the levy (the municipal property tax levy).”
Written by Ian McCallum
