A budget update to Sarnia City Council says departments are projected to spend nearly $500,000 more than the 2012 budget.
Councillors are being asked to direct staff to manage the $493,000 budget deficit, which is based on expenses up to May 31.
Contributing to the projected deficit are larger tax write-offs than were originally forecast as well as higher expenses for street lighting. In addition, lower revenues from Parks & Recreation facilities and recycling were cited in a report to council.
Finance Director Brian McKay has told council that staff will continue "to work toward addressing all budgeting issues for the current year" with the objective being to avoid or at least minimize the deficit.
On the water and sewer side, McKay has told councillors that the budget is tracking to be in a small surplus position by the end of the year.
Council meets on Monday (July 16) to deal with the staff report as part of its regular meeting.