Saint John will be able to make up for a projected $5-million revenue shortfall caused by the COVID-19 pandemic.
But it means some municipal services and programs will need to remain suspended for the rest of the year.
City manager John Collin says he will unveil the full list of options during the next council meeting on May 25.
“We will show you what we believe is in and out in the current situation for council review,” said Collin during Thursday’s finance committee meeting.
“I know there will be pressure. There’s certainly requests from our community to do more here or do more there or restore this or restore that. The bottom line, members of the finance committee, is based on our current projections, we will not be able to afford to do so.”
The current projections assume, among other things, that we will reach the ‘yellow’ phase of the province’s economic recovery plan within a month and remain there for the rest of the year.
Also assumed is that all organized sports will be cancelled for the remainder of 2020 and that permit, inspection and rezoning revenue will be down by 10 per cent for the rest of the year.
Kevin Fudge, the city’s finance commissioner, said they are performing detailed monthly analysis “right down to the lowest level of a budget you can imagine.”
“We’re keeping our eye on, obviously, what’s going on with the federal government, whether there’s stimulus or funds that are going to be available [for municipalities],” said Fudge.
The provincial government has guaranteed municipalities their property tax rolls for 2020, but it is unclear what will happen after that.
Collin said they will be closely monitoring property values heading into the fall as it will be an indicator of property tax assessments going forward.
The uncertainty about the city’s financial future is concerning for Coun. David Merrithew, who chairs the finance committee.
“This one scares me. There’s so much danger and unknown out there,” said Merrithew. “You must believe that there are businesses out there right now trying to do whatever they’ve got to do to reduce that tax burden, any tax burden, but property tax would be one of them.”
