By Sheldon Spackman

WEATHERING THE STORM

Town of Whitecourt forecasting budget deficit from COVID-19

Jul 25, 2020 | 10:32 AM

An update on the financial impact of COVID-19 on the Town of Whitecourt’ pocketbook was presented to council this week, and it forecasts a net financial deficit of $405,165 to the end of 2020.

According to Town officials, the deficit is from the net impact of one-time revenue losses and expenditure savings that are not anticipated to affect future years as business eventually returns to normal.

Like most other communities, the pandemic forced the closure of the Town’s recreational centres, sports fields, and tourism facilities, as well as seeing minimal development and construction, the cancellation of events, closure of non-essential services, physical distancing, and lower fine revenues from reduced highway travel.

According to Town statements, savings and service level adjustments from initiatives such as facility closures are estimated at $484,683 while revenue losses are estimated at $889,848 – resulting in a deficit of $405,165.

Officials say funding of the COVID-19 factor will come from the sustainability reserve that will have no impact on taxation for 2020 and provide for the continuation of essential services. Ongoing monitoring and reporting of the financial impacts are also expected to provide for fiscal responsibility during the unprecedented circumstances. A further update will be brought back for council this fall.

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In addition, administration is expected to continue identifying cost cutting measures in the meantime to help offset the impact of the public health emergency, but admit that this too could be challenging as the interim and final budgets have already seen over $1 million in cuts.

It’s also anticipated that the impact that the province’s relaunch strategy will have on operations will be better known in the September forecast.

Town officials highlight the challenge of being able to effectively plan and mitigate the financial impacts, as the uncertainty surrounding the duration of the pandemic is not known.