OLDS — As of this moment, it looks like the Town of Olds could end up saving $455,000 in expenses, due to the COVID-19 pandemic.
That’s because as of last week, the town expected savings to total about $855,000, and lost revenue to run around $400,000.
However, finance director Sheena Linderman warned that depends how the remaining months pan out.
“The lost revenues were only based on a four-month approximation, whereas most of the savings were for the rest of the year,” she wrote in an email.
“If social distancing continues throughout the summer and fall, the lost revenues will increase.”
Linderman gave a presentation on the matter during council’s April 27 meeting, held via Zoom.
She predicted the town could incur about $15,000 worth of COVID-19-related expenses.
That includes honorariums for the fire department, overtime for town employees and RCMP and incidental expenses such as santizer, extra cleaning, teleconferencing and technological supplies.
She said as a result of measures undertaken to flatten the virus’s curve, the town anticipates about $855,000 in savings.
That’s because among other things, the town won’t be spending money on employee training, going to conferences, or fire inspection.
Also, the aquatic centre is shut down so there are savings on utilities, and the town is expected to only hire about eight summer students instead of 17 as originally anticipated.
Town officials also expect to save $30,000 that would otherwise have been spent on special events. Savings (about $20,000) are even anticipated in porta pottie expenses.
Linderman predicted the town could lose at least $400,000 in revenue due to the pandemic.
She anticipates the town will lose about $165,000 in lost fees etc. in recreation because the Aquatic Centre, Sportsplex, ball diamonds and campground have all been shut down.
The town expects to lose at least $100,000 in building and development permits.
The Nu2U thrift store is expected to forego about $50,000 in revenue because it too is shut down.
Revenue from bylaw fines is anticipated to be down by about $5,000 and tax penalties are expected to be down by about $34,000.
