London's water department is facing a budget shortfall that could reach $1 million this year.

The city's engineer blames it on a series of unpredictable events -- leading to both a loss of revenue and a rise in expenses.

John Braam says total water use this year is comparable to the early 1980s when the city had 150,000 fewer people.

Less water use means less revenue for his water budget.

At the end of June, the budget had accumulated a $600,000 deficit and growing.

"It could be in the neighbourhood of $1 million in total revenue by the end of the year," says Braam.

It's not just the rainy summer that's to blame for the budget shortfall.

London's long and frigid winter resulted in more than twice the normal number of water main breaks; wasting massive amounts of water that had to be replaced at a cost.

"We bought it coming into the system and when we have a break the losses associated are essentially down into the sewer system," says Braam.

The only bright spot is that the deficit could have been as much as 30 per cent higher had council not introduced a minimum monthly charge to water bills earlier this year.

Braam expects to balance his budget with savings accumulated in previous years and not have to go to taxpayers for more money.

"We normally carry a reserve fund to manage emergent issues and also to manage these fluctuations in weather," says Braam.