Fare revenue at the city’s GOVA transit system is expected to be $2.34 million lower than forecast in the 2025 budget, largely due to reductions in the city’s international student population. Colleges and universities across Ontario are feeling the direct pinch in the drop in enrolment, after Ottawa dramatically reduced the number of student visas it issues each year. The city’s large international student population had helped drive an increase in Sudbury transit revenue in recent years, but a report headed to the finance committee next week says that trend has been reversed. “An anticipated shortfall in fare revenue totaling $2.34 million, largely due to changes in immigration policies and a decline in international student enrollment, consistent with operating pressures faced by transit services across the province,” said the report, which predicted an overall city budget deficit of $48,000. Lower operating costs, especially lower diesel prices, meant that overall costs were $1.5 million less than forecast, helping to offset the lower revenue. Other departments contributing to the deficit include fire services, where $910,000 more than forecast was spent on overtime costs and $514,000 more on equipment, repairs and cleaning. Linear services, which includes the roads department, is forecasting a $3.7 million deficit, in part due to emergency culvert repairs, ash tree removals and a $3.5 million over expenditure in the winter maintenance budget. However, there is a reserve fund dedicated to covering shortfalls in winter maintenance spending. Price increases are driving a $1.9 million deficit in the water and sewer department, while parking revenue is $328,000 less than expected. Some departments are running major surpluses. Investment earnings are $6.9 million more than forecast, and Blue Box program revenues are higher than expected in the environmental services department, leading to a $3.2 million budget surplus. The committee will review the full report at its meeting Oct. 14.
