With a projected year-end deficit of $821,050, the city is trying to cash in on the second round of COVID-19 relief funding.
At this week's meeting, Timmins CAO Dave Landers updated council on the financial impacts of the pandemic on the municipality.
The projected 2020 deficit includes a loss of $6.1 million in revenue and a $1.67 million loss in direct costs. There is also a $2 million operational savings, $4.29 million in relief funding, and $650,734 saved with cuts.
According to the report from director of finance Natalie Moore, who was not at the meeting, a surplus is projected in the general operating fund that affects the tax levy. This is because of unspent capital.
“While the gross revenues and expenses of the city show us at a significant loss, a lot of those are sitting in areas that don’t affect the property tax base,” Landers said.
In the first round of the Safe Restart funding from the provincial and federal governments, Timmins received $3.15 million. That included $2.37 million in funding based on a per household basis, and $775,512 for transit.
The second round of the funding is application based.
Up to the end of September, the city had lost $4.5 million in revenue. The overall average monthly loss is $525,000.
“When we did our original projections … there was no crystal ball in trying to figure out how long or how deep the impact of COVID would be," said Landers.
"We had projected that things would start to kind of return to normal some time after the second quarter and with more of a minimal impact upon operations, with about 10 per cent of lost revenue for the third and fourth quarter. As we’re well aware, that certainly hasn’t happened. Those were our best guesses at the time. Air travel, sporting events, court - none of those things have returned to the pre-pandemic levels and so we’ve have had to restate our projections going forward."
The revenue loss by department includes:
- $381,352 - parks and recreation. The city's original pandemic projection had the arenas returning to normal usage in September. The Whitney Arena opened Aug. 10 for ice rentals, and the McIntyre arena opened Oct. 13. "The decision of opening a third arena will be based on the demand for rentals," reads the report. The pool is also still closed and is scheduled to reopen in early 2021 due to roof repairs.
- $686,114 - transit. Early in the pandemic, fares were waived and later reinstated June 28. Not running on a full service schedule and schools not being fully open has had a significant affect, according to the report.
- $966,987 - finance. The report notes the lost revenue is because of the city waiving interest and penalties on overdue tax accounts.
- $302,255 - planning and building. Building permits were on hold from March to May, but staff were still receiving applications. Those were issued in June. Up to the end of September, the city has issued 247 permits. In 2019, it had issued 346 permits.
- $369,852 - museum, bingo and gaming, landfill, and fire.
- $1.2 million - airport. According to the report, cargo flights have continued, but not at pre-pandemic levels. Air Canada has increased its flights to two per day, and three flights on two weekdays. Air Creebec and Thunder Airlines are running three flights a week, and Porter flights are suspended until at least Dec. 15. "This reduced activity also affects the parking revenue, concessions and passenger facility fees," it reads.
- $140,264 - POA. All in-person matters have been adjourned until Jan. 22, 2021. The provincial offences court held its first court date by audio conferencing Sept. 29 and are now waiting for November dates to schedule matters via audio for guilty pleas or withdrawals.
- $13,113 - library. Both branches have now reopened, with curbside pickup still available at both.
- $263,648 - parking. Enforcement restarted July 2 but isn't generating the same levels as 2019. The 2020 $100,000 parking capital program has been cancelled to offset the revenue loss.
- $12,730 - police. The report notes the station reopened for walk-in services July 17, and some of the lost revenue has been made up in the third quarter.
- $280,019 - water. This is because of the lost interest and penalties on overdue water accounts. There was also a drop in metered water billings in the second quarter.
For expenses, up until the end of September the city has saved $4.4 million. On average, the operational savings is $100,000 per month.
Along with the Safe Restart Funding, the city received $72,505 for the Timmins Museum: National Exhibition Centre under a museum assistance program for COVID-19 support. Timmins Transit also received $27,004 from the Ministry of Transportation for Municipal Transit Enhanced Cleaning.