It’s still too early to tell the direct impact COVID-19 has had on City of Dryden finances.
Treasurer Steven Lansdell-Roll says as of now it’s a wash between revenue and losses.
He talks about some of the negative impacts.
“The Pool, Fitness Centre and Arena. We estimate that our revenues will be lower by $137,000. Assuming that our outdoor facilities are closed for May and June, we estimate that revenues will be lost to the tune of just over $19,000.”
Lansdell-Roll notes interest and penalty payments will continue to drop and they’ve already lost about $3,300 with the Library being closed.
He notes they have been able to find some savings.
“Delaying our Summer student recruitment through to June 30th. Assuming that things open up and we hire some students effective July 1st. But there are savings of just over $45,000.”
Lansdell-Roll says they are also handcuffed by a reduction in water and sewer revenue, loss of money from the Municipal Accommodation Tax and a drop in Interest revenue.
Lansdell-Roll cautions things will likely change as there’s still a lot of unknowns right now.
“I anticipate that we’re going to see quite a substantial hit already, absent even any further or additional measures that Council wants to approve, we are going to see a substantial reduction in our water and sewer revenues in 2020.”
He says that’s because non-essential businesses are closed and hotels, motels and restaurants are using less water right now.
Lansdell-Roll says the exact financial impact is unclear right now.
He outlines another concern for the City of Dryden.
“With the construction limitations. Our building permit revenue would be reduced this year, hopefully just deferred to another period or when the activity opens again.”
Lansdell-Roll provided a breakdown at a virtual meeting of Council this week.
Current Known Impacts (estimates to June 30, 2020)
Losses
-($31,500): Interest/Penalties waived through to April 30, 2020 *NOTE: Will continue to drop if an extension is approved on April 27th
-($137,325): Recreation Centre Revenue (Pool, Fitness Centre and Arena)
-($19,410): Outdoor Recreation Facility Revenue
-($3,350): Library Revenue (Fines, room rental, photocopying, etc.)
Current Known Cost Saving Measures (estimates to June 30, 2020)
-$26,990: Recreation Centre Utilities
-$10,750: Recreation Centre garbage, cleaning, etc.
-$45,485: Summer Student Recruitment delay
-$133,900: Staffing cost savings due to facility closures
Current Unknown Impacts:
-Water/Sewer Revenue reduction due to reduced consumption
-Reduced Interest Revenue due to prime interest rate reduction
-Municipal Accommodation Tax Revenue reduction due to reduced local accommodator occupancy
-Building Permit Revenue reduction due to construction activity deemed non-essential
-2020 Capital Plan delays due to contractor availability/travel restrictions
-Travel/Training cost savings due to cancellation of conferences/travel restrictions
