City's Variance Report for September continues to tell the tale of COVID challenges

City of PR CFO Corrine Bomben
outlined the latest financial
projections at last weeks
Council Session

Last week's City Council session featured the monthly update from the Chief Financial Officer as to the pulse of the city's financials, with Corinne Bomben outlining the latest results from the September  departmental reports.

And as they have for a number of months now, the Variance reports provided a glimpse into how the challenges of COVID related revenue reductions are impacting on the overall financial snapshot, with revenue expectations remaining down, while expenditures are still required.

At last weeks twenty two minute session, the council members in attendance had no follow up questions for the CFO following her review and findings to highlight areas where some financial re-balancing will be required by years end.

From last weeks review, a number of areas continue to struggle in the revenue area:

Among them the Airport Ferry which had budgeted for revenues of $1,287,000 for 2020 and as of September had realized only $422,284. 

While on the expenses side of the Airport Ferry ledger the City has spent $1,520,033 of the $2,844,000 budget to September.

On the waterfront, the City owned and operated Cow Bay Marina has taken in $125,777 in revenue as of September, that still well short of the $219,000 that had been budgeted for at the start of the year. 

While they  may not be taking in much money, the city continues to spend on the vessel mooring facility having spent $143,049 in expenses to September, that from a budget of $189,000.

Recreation Centre revenues continue to show challenges as well, with Ms. Bomben's report for September making note of the following elements:

Jim Ciccone Civic Centre Actual Revenues -- $94,367  
Budgeted for $256,000

Earl Mah Aquatic Centre Actual Revenues -- $101,568 
Budgeted for $428,000

Jim Ciccone Arena Actual Revenues -- $90,520 
Budgeted Revenues of $194,000

When it Comes to the Expenses Ledger the September results were as follows:

Jim Ciccone Civic Centre Arena Expenditures -- $207,414
Budgeted for $408,000

Earl Mah Aquatic Centre Expenditures -- $869,145
Budgeted for $1,502,000

Jim Ciccone Civic Centre  Expenditures -- $1,165,451
Budgeted for $2,008,000

The City's Transit system is also finding 2020 to be year of reduced revenues, with $138,252 collected to September, the budget at the start of the year had estimated revenues of $344,000

So far the City has spent $535,074 on Transit related expenditures from a budget of $883,000 

Ms. Bomben also called attention to the deficit facing the city's water utility, which is projected to be at the 100,000 dollar mark.

"The utilities budgets are performing as budgeted with the exception of the water utility, it is expected there will be a deficit for the year, by year end, given the reductions in commercial revenue experienced related to the pandemic. 

This combined with the increased testing related to the Water Advisory issued in August and again at the end of October from the significant rainfall events, means that we are projecting the deficit to be 100,000 dollars or five percent of the budget in the water utility"-- City of Prince Rupert Financial Officer Corinne Bomben on the City's water utility budget issues.

Later in the evening as part of the discussion on the proposed increases for the city's utility fees, Councillor Cunningham observed on the recent receipt of Provincial funding for COVID-restarts by municipal government.

As part of her reply to the Councillor, Ms. Bomben noted that some of that two million plus dollars in funding provided by the province may be put towards the Airport Ferry, Cow Bay Marina and Transit shortfalls.

Some of the financial findings explored in the
September Financial variance reports 
(click to enlarge)

You can review her Report for Council from the City's Video Timeline starting at the one minute mark, the follow up conversation on the Water Utility and the provincial funding comes at the eight minute mark.

For more items of note from the City's Finance Office see our archive page here.

Further background on the November 9th Council session can be found here.

A wider overview of Council Discussion themes is available from our Council Discussion Archive.

Cross posted from the North Coast Review.