The City of Moncton is currently operating at a budget deficit of $1.75 million.
Moncton City Council received a financial update this week at the halfway point of 2022.
General manager of financial services Jacques Doucet said projections have been made and the city could be facing a higher deficit later this year.
“This could vary in June and it can very easily be $1 million one way or the other for a $4.2 million deficit at the end of the year.”
Doucet said inflation is obviously going to play a big factor this year.
“The increase in deficit would be due to things for example such as the cost of fuel – including for Codiac Transpo – and the cost of other materials.”
He said the city has had to negotiate some contracts with companies that do business with the municipality which are also facing higher costs.
Doucet adds revenues are better than budget by $1.8 million mainly due to building permit fees and the tourism levy on hotel rooms.
