KITCHENER -- Cancellations of public events and closures of public facilities are costing local municipalities millions of dollars in lost revenue.
The cities say the breaks on bill payments and closures to sporting facilities means there is no money coming in.
The City of Kitchener estimates its monthly loss revenue is $2 million, while the City of Waterloo estimates theirs is $1.2 million.The of City Cambridge estimates theirs is $650,000, while The Region of Waterloo estimates theirs is $5 million.
To help soften the financial blow, the cities have put in place hiring freeze, cancelled professional development, and they’re deferring hundreds of millions of dollars worth of non-essential construction.
The Chief Financial Officer for the City of Waterloo, Keshwer Patel, says the effect could be felt years down the road.
“No new buildings are being built. We don’t have new condos and new properties coming on. They would have to come on to a tax roll in two-to-three years. That,s when you are going to see a significant impact,” Patel says.
The cities also have a reserve fund to fall back on if necessary.
Kitchener’s reserve fund is currently $4.4 million, Waterloo’s is $3.75 million, while Cambridge’s is $2.9 million.The Region of Waterloo’s is sitting at $15 million.
The municipalitiessay it is too early to say whether the current financial setbacks will mean higher taxes next year.
