The COVID pandemic has brought a lot of financial stress on British Columbia’s municipalities. Surrey is losing about $4 million every month. To reduce its losses, Vancouver laid off 1,800 unionized staff. More locally, how is the City Of Campbell River coping with the financial pressures?
Balancing The Books
At the April 20th City Council meeting, they looked at the projections on revenue streams.
“In that report, it was projected that by the end of September, we would see a [revenue] reduction of $3-$3.5 million. To meet this shortfall, council decided to use up to $1.35 million from the City’s financial stabilization reserve and another $2 million in cost savings. Those two things put together will balance the books,” said Deputy City Manager Ron Neufeld.
In addition, at their first virtual meeting on April 27, council approved a bylaw (#3771) enabling Campbell River to borrow close to $24 million “in such amounts and at such times as may be so required.”
Neufeld explained, “That is one of the tools that the province has put in the hands of local governments. It allows you to borrow against anticipated future revenue. At this point in time, we are not anticipating we will have to use that tool, but we have that tool in place as a safety backdrop if needed.”
How Campbell River Can Save $2 Million
In a recent press release, the City of Campbell River explained which programs would be deferred or suspended.
Neufeld added, “These are events that really help sustain the community character and not initiatives that we take a lot of pleasure in cancelling. However they are also events that we cannot undertake, based on provincial health ministry orders. At some point in time you have to look down the road and decide whether we are going to continue to plan for those events or not. We’ve made the decision that it looks improbable that those events can be safely managed this year.”
Campbell River could save nearly $2 million as a result of suspending these programs:
- $611,000 from suspending Spirit Square and CR Live Streets events as well cancelling summer recreation programs and related hiring
- $560,000 from not filling select vacancies
- $300,000 from suspending all non-essential travel and continuing to use online training where available
- $295,000 from suspending a range of programs and projects, many of them in the downtown core.
- $218,000 from reduction in temporary summer parks employees
Could Any Of These Items Go Forward?
If the pandemic ends before the summer, could any of these items go forward?
“I do not want to give you a clear yes or no answer. This issue is continually evolving. Council is committed to evaluating the orders and recommendations coming from the Health Officer to ensure that our actions are aligned with what is coming from the province.”
COVID-19 Financial Relief Measures
A number of measures designed to relive pressure on Campbell River residents were passed at the April 27 City Council Meeting:
- “No City fees charged on payments returned due to insufficient funds until the end of 2020
- No late payment penalties of 5% on metered water and sewer bills through the end of 2020 (with an exception for bulk water deliveries)
- Rollback 2020 Water User fees to 2019 rates
- Rollback 2020 Sewer User fees to 2019 rates
Council continues to lobby the Province to expand the property tax deferment program and increase the homeowner grant to people who’ve lost income due to the pandemic.”
Top photo credit: City crews working in accordance to COVID-19 health and safety directives while putting finishing touches on additional features along Campbell River’s seawalk at Roberts Reach – courtesy City of Campbell River