(File photo/paNOW Staff)

By Alison Sandstrom

Cost of COVID-19

City of Prince Albert forecasts over $600,000 in losses by the end of 2020 due to pandemic

Jun 16, 2020 | 8:12 AM

Prince Albert city administration is forecasting the COVID-19 pandemic will cost the city $632,588 by the end of 2020, although that number will likely increase as recreation facilities reopen.

Director of Financial Services Cheryl Tkachuk presented the updated financial forecast at Monday night’s executive meeting.

The most significant losses are due to decreased revenue from parking and transit. Usage at the landfill and airport are also down. The suspension of late fees for utility payments and the deferral of property taxes have cost the City additional money.

Tkachuk emphasized the situation around the pandemic is fluid and estimates will change.

“As we start opening up those recreation facilities, especially the indoor ones, we will incur more cost,” she told paNOW after the meeting.

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Tkachuk will provide an updated financial forecast in July, at which point she hopes to have more information.

“What we’re really keeping our fingers crossed for is that we can have a few more dates as to outdoor and indoor recreation,” she said. “And then that will give us a better idea and a better forecast as to where we’re going.”

Meanwhile Tkachuk said city adminstration will continue to look for cost-savings where they can.

“We’re going to be opening up city hall as soon as possible once we get everything in place so that we can have people buying those bus passes and parking permits,” she said.

Money has already been saved by reducing staffing and utility expenses at recreation facilities.

Tkachuk asked the public to be patient and emphasized cities across the country are dealing with the same problems.

Both the Mayor and City Manager have previously spoken about the need for the federal government to help municipalities balance their books during this unprecedented year.

Monday’s financial forecast is an improvement over a previous estimate from city administration which indicated the city could lose $750,000 by Dec. 31, 2020.

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alison.sandstrom@jpbg.ca

On Twitter: @alisandstrom