The closure of the water slides at Kinsmen Park this year impacted the city's revenue flow this year. (file photo/paNOW Staff)

By Nigel Maxwell

Crunching the numbers

City’s financial impact from COVID-19 raised to over $906K

Aug 11, 2020 | 2:00 PM

The financial impact from COVID-19 continues to rise for municipalities across the Saskatchewan, and the latest deficit projection for the City of Prince Albert is $906,606.

The updated forecast was presented during Monday’s executive committee meeting and represents a jump from $632,000 in the June report. The latest outlook was calculated after parking enforcement was re-instated, but prior to the reopening of Cooke Municipal Golf Course. Finance Director Cheryl Tkatchuk explained the city’s financial status relies heavily on the province’s reopen plan.

“The reopen plan will have various effects for the rest of the fiscal year. and possibly into 2021. Attendance and usage may or may not be limited which will have an impact on revenue losses,” she said.

Among the reasons for the projected deficit increase are the lost revenue for community services recreation centres and programs; down to $1.7 million from $3.08 million.

Projected savings from reduced staffing has been revised to $1.47 million from $2.5 million. There will also be a financial impact resulting from social distancing protocols. Tkatchuk said this will have an impact on the way the work force provides services.

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“As facilities and programs are reopened, additional revenue losses and increased costs could result due to limited attendees and usage,” she said.

Tkatchuk also raised concerns with the impact from the hold on water shut-offs, and the impact from removing enforcement to pay.

“There will be financial difficulties for people to pay coming Sept. 30. There has been a substantial increase in active outstanding utility accounts and the risk of collections is going to be higher,” she said.

Mayor Greg Dionne asked Tkatchuk if the projections reflected the later start to the Raiders season, and the loss of revenue from concessions. Tkatchuk replied they did not.

The Kinsmen Arena may play an important role this fall in providing revenue for the city. (Nigel Maxwell/ paNOW Staff)

Ward six Councillor Blake Edwards asked if there’s a possibility to centralize the city’s minor hockey at the Art Hauser Centre to help fill seats, as opposed to the teams going down the road to other smaller communities. Community Services Director Jody Boulet agreed this was a good suggestion.

“That was something we have been in communication with [the league] about, making sure that we centralize not just the starting with the Art Hauser but then the subsequent arenas that are scheduled to open like the Kinsmen arena next, followed by the Steuart arena,” he said.

Boulet also explained the city reached out to the operators of the Buckland arena (Northern Regional Recreation Center), which is also used by a number of local groups.

“I think that’s going to help with keeping our local participation, participating in Prince Albert for the start of the season while we wait for further information to be released some of the leagues that are outstanding,” he said.

A positive note, Cooke Municipal Golf Course raised close to $600,000 in revenue, almost $100,000 more than what was budgeted. Boulet said he was happy to see the increase.

“However keep in mind when we made that projection, there were 20-minute tee time intervals. Those have now progressed to 10-minute tee time intervals however we do some limitations with tournaments which drive revenue for the course. Some of that has been offset by our sponsors honouring their 2020 commitments,” Boulet said.

In her closing remarks, Tkatchuk said administration will continue to monitor the financial impact of the pandemic and the budget constraints. She promised future update reports to council.

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nigel.maxwell@jpbg.ca

On Twitter: @nigelmaxwell