The Cariboo Chilcotin Regional Hospital District isn’t coming out unscathed from COVID-19, but it’s finances are in good shape to whether the storm.
That’s according to the Cariboo Regional District’s (CRD) chief financial officer, Kevin Erickson.
“We’re looking at a shortfall of about $1.2 million over what was budgeted,” he said. “That’s not really a big concern, because we have cash on hand, we’re very liquid.”
Erickson said the change was mostly due to a drop in interest rates.
The board also heard the $1.2 million dollar projection is probably an overestimation of the difference.
Many major projects were put on hold due to COVID-19, and Erickson said when building the new projections, he assumed they would happen in the second half of the year.
“I took a very pessimistic view of things,” he said. “I assumed assessment values would stall out in 2022. I held everything constant in terms of budgeted expenses.”
Even with that negative view, the district is on track for stability in the medium-term.
“The good news is that the $70 per 100,000 residential assessment is sufficient to carry the day,” Erickson said. “The only other adjustment that’s needed is an additional $500,000 borrowing. We’d already anticipated $3 million in borrowing in 2024.”
Erickson said the district was well positioned to handle COVID-19 financially.
“We’re taking a bit of a hit in cash flow, but the hospital district is in solid territory,” Erickson said.
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