COVID-19's financial impact on the Town of Saugeen Shores could be a cost of about $62,300 if things were to go back to normal by May 15th.
A staff report presented to council Monday night (Apr 27) looks at staffing changes, revenue loss and COVID-19 related expenses.
Mayor Luke Charbonneau says, “To be shut down for this length of time and only be down $62,000 is a very positive thing in my estimation.”
Staff estimate about $30,000 in lost revenue after the removal of penalties for not paying water/sewer bills and property taxes. Another $20,000 is estimated in lost interest payment revenue.
A combined loss of about $115,000 is estimated in pool and ice rental revenue if things stay closed until June 15th. The report doesn't consider lost revenue from tourist camps, sports fields or the harbour.
There are some savings in staffing. If restrictions stay in place until May 15th, the town would save $125,300. If things extend to June 15th, it would save about $245,800.
The report says this is because three contract positions were eliminated by the town, planned new hires have been put on hold and summer student job start dates have been delayed. Staff say no overtime hours have been tied to COVID-19.
According to the report, so far, the Town has spent about $30,000 on COVID-19 mainly in the form of PPE and computer equipment to enable staff to work at home.
CAO David Smith says the Town is still charging for garbage bag tags. If it weren't it would be losing about $8,000 to $9,000 a week. He says staff have delivered tags to a handful of isolating households.
The Town also has an Emergency Operation Reserve of just under $230,000
Staff say building, water, sewer and waste management aren't expected to have a big impact.
Meanwhile, another possible expense related to COVID-19 has to do with a staff recommendation to hire an Economic Recovery consultant for $40,000 from a reserve fund. Council deferred that matter asking for more information from staff.