District’s Parks and Recreation have experienced a revenue shortfall of $300,000 as arena, swimming pools and other local programs were shut down due to COVID-19.
District staff recently presented a quarterly financial report to the district, outlining the challenges created by the pandemic.
Linda Glenday, Chief Administrative Officer, said the district’s Capital Plan had not been significantly impacted by COVID-19, but several special projects were at risk of delay.
Those projects include the Estuary Environmental Coordination Plan, the Sea to Sky Evacuation Plan Community Outreach and the Rural Development Plan.
The $300,000 losses will be partially offset by expense reductions, including the money saved by reduction in contract hiring and maintenance expenses.
The district is also worried the pandemic could create an economic downturn that could affect the development industry and decrease the district’s building and development permit revenues.
But the CAO told the council the district had $2.8 million in unappropriated surplus which can be accessed in case of emergency. The province has also allowed local governments to borrow against their reserves if necessary.
Meanwhile, COVID-19 doesn’t seem to have affected the tax collection this year. To date, 2020’s tax collection is at 76% of revenue.
The district anticipates the tax collection will come in somewhere near or slightly below the 90% collection rate, that is typical of a standard tax year.
Squamish also saw a decrease in service levels and ridership as a result of COVID-19. However, BC Transit has provided a six-month “lease fee holiday” to help with the decrease in revenues.
The district will consider long-term COVID-19 impacts in the 2021 budget cycle.
