By rdnewsNOW staff

COVID-19 costs accounted for

Lacombe city council approves operating budget amendments

May 13, 2020 | 3:13 PM

Lacombe city council has approved amendments to the city’s 2020 Operating Budget based on updated estimates for revenue and expenditures.

In a release, City officials say the spring amendments consider the impacts of the COVID19 pandemic, and holds the one per cent tax increase approved in the 2020 budget that was approved in December.

In 2020, Administration is proposing to adjust total operating revenues by approximately $534,000, and total operating expenses by approximately $346,000. Overall, the net financial impact of the regular budget adjustment would be to increase the City’s financial capacity by about $190,000.

The City of Lacombe is estimating they will lose $500,000 in revenue, largely in user fees and facility rentals, due to municipal facilities being closed to the public in accordance with public health orders.

The City is also expecting to incur additional expenditures totaling approximately $48,000 in 2020 relating to COVID-19.

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Combined, the tax supported component of the recommended budget adjustments (both ‘regular adjustments’ at + $190,000 and ‘COVID19 adjustments’ at –$210,000) creates a small shortfall of about $20,000, which will be withdrawn from the City’s Operating Reserve.

“Through the consideration of the overall organization, Council and City administration were able to largely mitigate the negative consequences of the pandemic through effective planning and quick action,” said Mayor Grant Creasey. “This public health crisis is by no means over, so I encourage everyone to continue their diligence in adhering to the physical distancing guidelines and good hygiene practices.”

“Although adjusting staffing levels is never a pleasant task, it was necessary due to the coronavirus pandemic,” said Chief Administrative Officer Matthew Goudy. “Taking this action early has put us in a good position to weather the financial storm over the coming months.”