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Winter Maintenance Budget Overspent in 2007 Storms

You have already guessed it, we overspent our budget for snow removal last winter.  According to the report to General Committee, the budget was overspent by $1.4 million, but some of that will be offset by a favourable variance in the 2007 Operating Budget.

The Operations Department experienced a significant increase in winter maintenance activity through November and December 2007.  To responds to snow and freezing rain conciliations form late November through to the end of December, sanding and salting operates were undertaken on primary roads 26 times, with continuous 24 hours service required on 5 different occasions.  In addition, full snow plowing of local roads was completed twice for major storms and once for a minor storm during the same period.  There is also the cost of the sidewalk winter maintenance and winter materials that was spread.

The budget runs on a calendar year, from January 2007 to December 2007, but of course winter runs from November to April.  We had a mild January last year, so some of the savings at the end of last winter have helped pay for the over spending for the end of the year.

The budget is set using the average cost of the previous four year period, so the 2008 budget may track closer than last years.

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