Waterloo Region has a deficit already this year:
The Region of Waterloo had a $971,000 budget shortfall as of April 30, mostly due to low waste management revenues.
The actual waste management deficit is about $1.3 million but it’s offset by savings in other areas.
This might be reasonable if it were the result of unforeseen circumstances. But it isn’t:
Staff project lost revenues could reach as much as $3 million by year’s end, the same loss recorded in 2012. [emphasis mine]
So staff knew there was a problem, did nothing about it, and is now reporting a deficit. Again.
How does that definition of insanity go? Doing the same thing over and over and expecting a different result?
The reason for the decrease in waste management revenues? Companies in search of a better deal:
Those private haulers charge a lot less per tonne to dispose of the trash at private facilities than the regional landfill charges.
The region seems to be overcharging for the market, and losing business as a result. Wouldn’t it be prudent to consider lowering costs to come closer to the private haulers?
Regardless of that, predicting an annual deficit because of a failure to take into account an existing situation is just a budgeting failure. And these are the same people managing the $818 million LRT project.
Be very afraid. If they can’t budget based on existing knowledge, how well will they be able to deal with the unknown?