Burlington council to receive update on financial impact of COVID-19

Published April 17, 2020 at 4:33 pm

Burlington council to receive update on financial impact of COVID-19

Burlington City Council will get a deep look into the financial impact of the COVID-19 pandemic and ensuing shutdown.

Burlington City Council will get a deep look into the financial impact of the COVID-19 pandemic and ensuing shutdown.

Council says they will meet with senior staff will meet virtually on Monday (Apr. 20) at 9:30 a.m. to receive a financial update and seek council’s endorsement of a three-month strategy “that prioritizes which city services will be provided through to the end of June”. 

Members of the public can view virtual council meetings remotely using the City’s existing web streaming tool at www.burlington.ca/calendar.

Mayor Marianne Meed Ward will be the only member of council present in the chambers along with the city clerk and technical staff as the remainder of council continues to self-isolate.

“Our city is currently in a good position thanks to savings we’ve acquired through our winter maintenance budget, a result of a light winter, and major tenders that came in under budget,” said Meed Ward. “In addition, our financial planning includes setting aside funds in reserves to help cushion the impact of unexpected events – like the one we’re currently facing.”

“While this will help in the short-term, it is not a sustainable model over a longer period of time. For that reason, we are taking the necessary steps to plan ahead and reduce costs wherever possible while ensuring the essential services our residents depend on continue,” the mayor added.

The report detailing the impacts of the COVID-19 pandemic on the city’s budget will include:

  • Estimated revenue impacts of $7.6 million to June 30, 2020
  • Estimated expenditure savings of $5.2 million to June 30, 2020
  • Cash flow projections to June 30, 2020
  • Future financial modelling to identify pressures, dependent on the length of the pandemic, and recovery scenarios

Municipalities are required to approve a budget that is balanced, however, the city can have a shortfall or surplus in a given year. A shortfall can be offset by:

  • Using reserve funds
  • Increasing taxes in the next year
  • Reducing expenditures during the year of the anticipated shortfall

“In recognition of significant revenue losses such as transit fares, recreation programming, and property tax deferrals, an expenditure restraint program was immediately implemented across the city to assist in mitigating the financial impacts,” said Joan Ford, Chief Financial Officer, City of Burlington.

“Further work will be completed to model the city’s year-end financial position based on various scenarios, given the uncertainty regarding length of time for physical distancing and recovery patterns.”

City staff added that council will also discuss a three-month work plan as efforts to protect residents and staff continues.

COVID-19 Links and Resources 

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