Yellowknife finds unexpected $6.7M in 2019 audit, could it be spent on COVID-19 relief?

An unexpected $6.7 million surplus could help the City of Yellowknife offset some of the economic effects from the COVID-19 pandemic, but it will take some time before there's a clear picture of what that offset could look like. 

City councillors heard about the surplus Monday as part of an administration report on the audited financial statements from 2019. The money largely comes from approved projects the city didn't end up completing. 

Now, city officials are coming up with potential scenarios for councillors to consider, each depending upon how long the COVID-19 shutdown lasts. 

At Monday's committee meeting, Sharolynn Woodward, the city's director of corporate services offered July 1, Sept. 1, and Jan. 1, 2021 as examples of short, medium and long-term reopening dates.  

"It's much more complicated than looking at set dates and assuming that everything is 100 per cent back to normal," Sheila Bassi-Kellett, the city's senior administrative officer said. 

Much of how the city responds will depend on what the economic fallout from the pandemic is, whether it's a quick turnaround, a long period of hardship, or something else entirely, Bassi-Kellett said. 

• Read more about how the N.W.T. economy could be affected by COVID-19

"We're putting together some of these assumptions to take a look at what will the impact be on our programs and services, our revenues and our expenditures," Bassi-Kellett said.   

Though similar financial forecasting happens every year around this time, the unpredictability of the COVID-19 response is adding extra uncertainty to the work this year, she said.

"It's so much harder to make those predictions," she said. "We don't take any of this lightly and we want to make sure as we're watching and making these projects essential services continue."  

The $6.7 million won't be spent on rehiring part-time casuals who've been laid off, Bassi-Kellett said. 

Those employees worked at facilities that are now closed and the city is focused on making sure there is enough meaningful work for its full-time employees. For the same reason, the city won't be hiring summer students this year, she said. 

Less money coming in

Also on Monday, councillors heard about potential losses that could result as COVID-19 drags on. The city had counted on bringing in $4.5 million this year from facility rentals, parking fees, bingo licensing, transit fees and penalties. There are also new expenses they couldn't have predicted, like purchasing personal protective gear, more overtime payments, or software upgrades for employees working from home.  

If the city remains shut down until 2021, the city could stand to lose nearly $4.5 million in what Coun. Robin Williams calls a "worse case scenario."  

Last week, Yellowknife Mayor Rebecca Alty told CBC News there isn't much the city can offer by way of relief, noting the city is prohibited by law from going into long-term debt. As the pandemic continues, the municipality will "stick to our lane," providing essential services to residents, she said. 

Though that's still the case, Coun. Williams is already calling for a tax cut next year, using the 2019 surplus to cover the projected shortfall. 

"In our worst-case scenario, it appears to me … that we would have more than enough to cover that [$4.5 million] shortfall," he said. "That's not even considering we're open in September."  

City administration will now work to create the various projections and come back to council with numbers and options for them to consider as the situation develops, though Bassi-Kellett does not know how long that will take. 

"We don't want to make any [city] programs inaccessible for Yellowknifers when we're all going through a hard time," she said. "I want to make sure there's at least still a quality of life for everyone."