By Cheryl Jahn

Financial Woes

Mayor and Council grapple with COVID impacts

Jul 31, 2020 | 10:57 AM

PRINCE GEORGE – Monday night was a significant night for Mayor and Council, launching what will be a number of measures to address the City’s budgetary shortfalls.

In their financial update, City Manager Kathleen Soltis and the Director of Finance Kris Dalio painted the grim picture: the City is bleeding money. Its deficit to the end of this year will be $3 million.

“Given the City’s loss of revenues due to COVID-19, it paints a worrisome picture – i.e. the City’s 2021 budget deficit could exceed $6 million and, without significant actions being taken, a 5.63% tax levy increase could be required to close the gap,” writes the author of the report to Council.

Council subsequently sent Administration away with orders: return with scenarios of the impacts of a 0%, 1% and a 2% tax increase for the 2021 budget.

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“But when you start to talk about taxes, you’re reducing services,” says Mayor Lyn Hall in an exclusive sit-down interview with CKPG News. “You could reduce snow removal, for example. We have an $8 million budget. We have, in the past, gone over that budget because we’re trying to provide what I think is a really great snow removal service. So is the community prepared to see a reduction in service?”

He says there will be challenges moving forward with whatever scenarios Council is presented within the weeks to come.

“You know, when you have a crisis on your hands, it’s interesting how far outside the box you start to think to either generate revenue, reduce costs, take different measures in the way you do business. And we have to do that,” states Mayor Hall in the aftermath of that critical meeting.

There will be updates to the City’s financial status throughout the course of the fall, but Mayor and Council still plan to host a Talktober event in some form in the run-up to the budget discussion.