With many people out of work due to COVID-19, Port Alberni’s city council has made some significant changes to its 2020 budget.
During a special virtual meeting of council on Monday, April 6, council voted to remove more than $800,000 from this year’s budget, bringing the expected tax increase down from 4.3 percent to 1.07 percent.
Although the city is not able to defer taxes, council voted on Monday to waive penalties and interest on utility bills until September.
During the meeting, financial manager Andrew McGifford explained that the city will see a $160,000 decrease in revenue due to the closure of city facilities (such as the Alberni Valley Multiplex and Echo Centre). But the curtailed services and cancelled programs will also result in a $700,000 decrease to taxation, as the city is not paying for staffing or supplies.
Two of the largest projects on council’s radar have been the Third Avenue revitalization project and the addition of welcome signage around the city. Both of these projects have been shifted to the capital work reserve, which means they will not take place unless the city receives significant grant funding from the federal or provincial governments. This will result in a $600,000 decrease to taxation.
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Council also voted to decrease the 2020 training and travel budget for councillors and staff by $90,000, with COVID-19 limiting travel and conferences.
The budget did see some additions, with council voting to add $70,000 to the budget for increased security and lighting at several city sites.
“We’ve had a considerable increase in break-ins and some theft,” explained City CAO Tim Pley. “We’ve been stymied in terms of how to deal with that.”
Although city facilities have security cameras, these have not been enough to stop the break-ins. Pley explained that the city plans to hire a private security company to look at seven city sites.
“They would also be able to tour the community while they’re passing from city site to city site,” he added. “They would also be eyes out in the community.”
Council also voted to add $200,000 to the budget for COVID-19 response and recovery costs. McGifford explained that the city has already spent $60,000 to enable council and staff to work from home, as well as a donation to the local food bank.
“[The $200,000 is] additional funding that provides us with the flexibility to move forward after this event has finished,” McGifford said.
With the local gaming centre closed, council will also see a 25 percent (or $111,460) reduction in revenue from Community Gaming Revenue.
The 2020-2024 five-year financial plan must be adopted by May 15. Council will be giving second reading on April 14, followed by third reading and adoption on April 27.
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