City of Calgary facing $20M in lost revenue due to economic downturn
Further reductions could be expected if province cuts grants for operating costs and capital projects
Falling oil prices have created a lot of uncertainty at city hall.
Calgary city councillors received an economic update on Tuesday, and were told the economic downturn could result in at least $20 million in lost revenue.
The city is expected to lose the amount based on predictions of slower growth and lower tax revenues.
"I think everyone knows the slowdown is coming. The real question is, what will be the size of it? What will be the scope of it? And how badly will people be hurt by it?" said Mayor Naheed Nenshi.
Council was warned there could be even further reductions if the province cuts grants for operating costs and capital projects.
Coun. Sean Chu says everyone at city hall should take a pay cut, including councillors and staff.
"We need options, especially the economic situation in Calgary right now, everything should be on the table," he said.
Coun. Shane Keating believes the city should look towards how money can be saved on capital projects.
"If you save one thing on a capital project, you could save $400-thousand. That's what I'm looking for," he said.
The city issued a statement today and the city's plan, called "Leading Through Economic Uncertainty," has a clear message: the city is in a strong position to deliver continues services in 2015-2016, based on sound financial management, a committed workforce and projections of long-term growth.
Another update is expected by the middle of the year, when the economic picture is expected to be more clear.