Gibsons council has voted to make further cuts to the 2020 budget as the economic fallout of the COVID-19 pandemic continues.
“Our community is not going to recover anytime soon,” Mayor Bill Beamish said at council’s April 21 meeting. “I think we’re all aware of our businesses and people who are challenged to make payments.”
Beamish said he’s already heard from some residents that the five per cent increases reflected on the utility bills that went out recently are unaffordable.
Beamish asked council to consider three changes to the budget: eliminating the one per cent increase that was to be used to build a reserve for future policing costs, delaying a $23,000 upgrade to software systems in the finance department, and setting aside a $3,000 purchase of new furniture for the council chamber.
“There’s not many things municipalities can do,” said Coun. Stafford Lumley. “We don’t have the power to waive a lot of things, we don’t have a lot of money to give away – we’re not the province or the feds. But I think anything we can do I would support at this time.”
“I think it’s a good move,” said Coun. Aleria Ladwig. “All communities in B.C. are going to struggle this year.”
Coun. David Croal also raised the $15,000 set aside for the now-cancelled Sea Cavalcade, but Beamish said he wanted to keep that money on the books so it could be added to the Town’s grant-in-aid funding if needed.
Director of finance Lorraine Coughlin estimated that the changes, which were approved unanimously, will reduce the overall tax increase to 2.2 per cent.
“It will almost offset the increase in the water and sewer that people are getting,” said Beamish. “We are basically going to be going in with a tax that is a cost of living increase.”
Council also approved some other budget-related moves prompted by recent announcements from the province around property tax relief for businesses, including a direction to municipalities not to impose late payment charges until Oct. 1.
Council voted to apply the Oct. 1 date for the 10 per cent late payment charge to all property classes, but met again April 24 to amend that decision after Coughlin reported to council that the province updated its direction to simplify the procedure and make it possible for the Town to easily administer different penalty dates for different classes.
The tax due date will remain July 2, but after the April 24 council vote a five per cent late payment charge will now be applied to residential and farm class properties starting July 3, with a further five per cent charge to be applied on Oct. 1.
The Town will still “strongly urge” all property owners who are able to pay by July 2 to do so “in order to maintain the Town’s cash flow required for essential services.”
To help prepare for any cash flow problems, council also voted April 21 to move forward on a revenue anticipation borrowing bylaw, allowing it to borrow up to $3.5 million, if needed, to cover expenses until all the property tax revenue is collected. Such bylaws are commonly used by local governments in the province, although Gibsons has rarely had to use one.
B.C. municipalities have to adopt their 2020 budgets by May 15 at the latest.
