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Port Coquitlam approves $30 million cash flow loans just in case

Council passes revenue anticipation bylaw, makes other financial adjustments to weather COVID-19 financial storm, but provincial tools not necessary at this time, mayor says
City deals with COVID-19 crisis by reassigning workers like Jesse
As Port Coquitlam closes recreation programs and centres to deal with the COVID-19 pandemic, some workers have had to be laid off while others are redeployed. Jessie Smith-Manchip, youth services employee, was reassigned to alternative work in the public works department.

Port Coquitlam council will hold emergency meetings and make adjustments if needed to deal with its finances during the COVID-19 pandemic but for now is in a solid position to weather the crisis the city’s mayor asserts.

As Metro Vancouver municipalities grapple with revenue losses and look for provincial relief, Mayor Brad West said the city won’t need to use the new tools announced by the B.C. government Thursday, such as borrowing interest-free from capital reserves to pay for operating expenses like employee salaries.

“At this point, we don’t anticipate we will require it and if that changes the tool will be there and we will be able to communicate with council and the public about what we’re doing and why we’re doing it,” West said.

Earlier this week, council passed a revenue anticipation bylaw that will allow the city to borrow up to $30 million to maintain cash flow as necessary to meet financial obligations due to an extension of tax and utility deadlines to Sept. 2. Typically, these funds make up 85% of Port Coquitlam’s revenues.

West said the city is in good financial order and the bylaw will only be used if necessary.

However, the big question for many taxpayers is: will taxes have to rise next year to cover any additional costs or revenue losses from the COVID-19 pandemic?

The city has already lopped off its anticipated tax increase, reducing it to zero from 0.48% on the average home, but West doesn’t anticipate a spike in taxes next year to make up for this year’s streamlined tax bill.

“We don’t expect to have significant tax increases next year to make up for the situation we’re in right now,” he said. “Obviously we’re closely monitoring it. We will be going through the same robust budgeting process next year.”

According to West, the city is benefiting now from years of keeping its house in order, something he thinks the public — and the province — expects. So far, the B.C. government isn’t offering any open handouts to cities, and West thinks that’s reasonable, given that most taxpayers are currently looking at ways to stem the bleeding from the COVID-19 financial fallout.

However, the city has made some adjustments to cut costs. For, example, it is reducing non-essential spending and placing a hold on external hiring except for critical positions.

Like other cities, it is also laying off casual employees who typically work at recreation centres or do programming, which is now all cancelled or closed. The job toll thus far is approximately 110 casual employees, 65 regular employees, of which 29 are re-assigned with the remaining 36 staff laid off.

Where possible, West said, recreation workers are given other assignments, such as a pair of lifeguards who are now acting as park ambassadors, ensuring that people are physically distancing.

Meanwhile, many city staff continue to work from home and a variety of services are still being provided by phone, email and online, including services for businesses, the development community and seniors.

Essential services also continue to be provided, including fire and police protection, water and sewer services, garbage collection and critical infrastructure maintenance and operations.