By Cecilia Nasmith
As of the third quarter of this unprecedented year, Northumberland County is meeting the COVID-19 challenge in a relatively strong fiscal position – and, according to the presentation director of finance Glenn Dees made at the October county council meeting, may even be able to attempt a 2021 budget with little to no levy increase.
The county remains close to an on-budget position as of Sept. 30, Dees said, detailing an odd balance of extra expenses and foregone revenue (like $155,000 in bag-tag proceeds that were waived for a few weeks and $382 in tipping fees lost when county recycling centres temporarily closed) that somehow found a degree of balance.
There was a lot to make up for, Dees said, citing such examples as an estimated loss of $438,000 in Provincial Offences Act ticket revenues while the courts were closed and the $104,000 in lost revenues and sales from the closures and lay-offs at the Ontario Agri-Food Venture Centre.
But there were also expenditure savings as adjustments to operations were made, travel was curtailed, gas prices turned out to be lower, summer students were hired later, and – most of all - Federal and provincial COVID-relief monies began to flow, such as more than $1-million in gas-tax payments that the Federal government made early to help municipalities.
Dees was especially encouraged with the Federal-provincial Safe Restart municipal-operating funding that went a long way toward offsetting COVID-19 pressures that included $1.5-million in lost revenues and $3.5-million in expenditure increases for such things as sufficient personal protective equipment, greatly increased sanitation and hygiene measures and extra traffic control at community recycling centres.
“Overall, COVID-19 impacts are anticipated to be offset by funding that has been provided, specifically with the announcement of the Safe Restart funding,” Dees said.
In fact, out of $2,472,900 received through this program, there is an $800,000 surplus at this time that, by law, must be transferred to reserves but can be used at some future time.
In making a forecast, Dees called it “a high-level estimate with a significant degree of uncertainty.”
Answering a question about the 2021 budget from Deputy Warden Bob Crate, he said this process is in fairly preliminary shape, and new impacts – like changes to the waste-collection contract and an increased levy by the Haliburton Kawartha Pine Ridge District Health Unit – are making themselves known. Still he has hopes of absorbing the changes and adjusting the overall budget to keep it as close as possible to a 0% increase.
“As we go forward, with the threat of another potential lockdown, is that being factored in?” Councillor Mandy Martin asked.
“We have reflected that into the forecast we have,” Dees assured her.
In answer to Councillor Bill Cane's question, Dees said the county would not likely apply for additional Safe Restart funding under a second intake.
“Most municipalities are realizing the Phase 1 funds are really sufficient to cover the pressures in 2020 – and Phase 1 is specific to the 2020 year,” he said, reminding Cane that a good portion of the Phase 1 Safe Restart money can be drawn on from the reserves.
“I don't believe any of the municipalities in Northumberland are applying for Phase 2.”
Eighty-four per cent of the county's budget comes from two sources: 50% from taxpayers and 34% from grants and subsidies.
