The exterior of Saint John City Hall is pictured in this file photo. (Staff photo)
Saint John’s COVID-19-related shortfall looks to be improving.
Since April, the city’s projected revenue decrease due to the pandemic has dropped by $1.8 million.
The original projection of $5.9 million has come down to $4.1 million in lost revenue, a 31 per cent drop.
“We are trending better than we expected,” said Dawn Arbour, the city’s senior finance manager. “Revenue results remain strong in categories such as permits and licences. This has allowed us to positively adjust our year-end projections.”
Among other changes, the city has offset the revenue losses through a $2.4 million cut to salaries and benefits, a $1.3 million reduction to goods and services, and a $1 million budget drop for Discover Saint John.
Further cause from optimism comes from a campaign promise from Blaine Higgs’ government to fund municipal transit operating deficits.
Given the $250,000 deficit Saint John Transit is expecting, that would be a welcome promise for the Tories to keep after winning a majority government Monday night.
However, City Manager John Collin warned against optimism that provincial funding would be able to reinstate service cuts that came earlier in 2020.
“The commitment from the province was to fund the operating deficit of the transit organizations, not to refund restoration of services,” Collin said.
“What it would permit us to do is address the deficit, so that no further cuts in services would be required between now and the end of the year.”
