On Thursday, Victoria council will review a report on the 2020 budget. (Black Press Media file photo)

City of Victoria expecting a 2020 deficit between $12.5 to $17.5 million

Victoria lost $1.2 million per month just from reduced parking fees during onset of pandemic

The City of Victoria is expecting a deficit between $12.5 to $17.5 million for the 2020 fiscal year, according to a report from the city’s chief financial officer.

Since the onset of the pandemic, the city has lost approximately $1.2 million per month after parking costs were lowered in April to alleviate the financial burden for drivers. Since the province has moved into Phase 3 of its restart plan, parking revenue has increased to $950,000 per month. However, a loss for the year is expected to be between $8 and $12.8 million.

READ ALSO: Victoria to talk nixing reduced pandemic parking rates

The city is also expected to lose approximately $250,000 due to the closure of the Save-on-Foods Memorial Arena and another $2.3 to $2.5 million from the closure of the Victoria Conference Centre. The closure of the Crystal Pool and Fitness Centre also resulted in a revenue loss for the city, but due to lower operating costs, there is only a “negligible net financial impact to the city,” according to the report.

READ ALSO: CRD cost estimate study looks at regional housing, transportation affordability

A number of the city’s commercial tenants, who were unable to qualify for the federal rent assistance program, are working with the city on potential rent adjustments but an estimated revenue loss of $1.1 million is expected.

Adding to the financial cost of the pandemic is the fact the city implemented increased cleaning protocols for all its facilities and additional costs related to the various encampments, such as bylaw enforcement and public works, which is estimated to have cost the city $850,000.

The report, put together by Susanne Thompson, lays out a number of strategies to mitigate the expected revenue shortfalls and additional costs incurred from the pandemic, which will be reviewed by city council on Thursday.


 

Do you have something to add to this story, or something else we should report on? Email:
kendra.crighton@blackpress.ca. Follow us on Instagram.  
Like us on Facebook and follow us on Twitter.

City of VictoriaCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

West Shore RCMP arrives just in time thanks to tip

Officers remind of resources after mental health call Monday morning

Lamborghini driver slapped with nearly $1,000 in fines while speeding in Central Saanich

Vehicle impounded by Central Saanich police, 11 points issued

Man arrested after speeding to Victoria court date for driving offence

West Shore RCMP remind drivers to be mindful of construction zones

UPDATED: Driver faces charges after crash at Blanshard and Saanich

Lanes closed Monday afternoon, one person taken to hospital

Victoria police seek suspects in series of bear spray attacks

Police responded to several calls Saturday evening

Weekend sees 267 cases, 3 deaths in B.C.; Dr. Henry says events leading to COVID spread

There are currently 1,302 active cases in B.C., while 3,372 people are under public health monitoring

SOOKE HISTORY: Alleged bootlegger has day in court

Blackberry wine confiscated at home

Shawnigan Lake’s Kubica gets 25 to life for murder in California

Former Shawnigan Lake man convicted of killing woman in 1990

B.C. VOTES 2020: Echoes of HST in B.C. debate over sales tax

Cannabis, tobacco, luxury cars still taxed in B.C. Liberal plan

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

She warned her son about toxic drugs, then he was dead

Donna Bridgman’s son died at the age of 38 in Vancouver

Duration of Tour de Rock stop in Chemainus much shorter than usual

Four alumni riders don’t get to come for breakfast in COVID year

B.C. food and beverage producers set record sales in 2019

Farmed salmon again leads international exports

Police seek help in naming Cowichan farm stand theft suspect

Video captured man prying cash box out of stand on Norcross Road

Most Read