The City of Kelowna is pleased to see the provincial government responding to local governments’ financial concerns.
“Today’s announcement provides some much needed flexibility,” said Mayor Colin Basran. “The deferral of payments for school taxes and borrowing will help with our short-term cash flow in light of anticipated reduction in revenues. We are thankful for the hard work of Minister Selina Robinson and Minister Carole James and their staff to help us ensure the continuation of City services our citizens rely on.”
The Province also has provided additional help to businesses by reducing the school property tax rate and deferring the late penalty tax date for commercial businesses to September 30, 2020. https://news.gov.bc.ca/releases/2020FIN0020-000703
The City will need some time to verify and determine the impact of the various measures announced today on its overall cash flows.
Staff will then be able to consider if other measures such as borrowing from our capital reserves for short-term operational expenses are a financial strategy we need or want to pursue in the short-term.
“The City’s immediate focus is decreasing the taxation demand for final budget and reducing operating costs,” said Genelle Davison, Divisional Director of Financial Services. “The final budget will be presented to Council on May 4 and it’s expected expenses will be reduced through ongoing and one-time cuts to base budgets, elimination of new positions and programs and the deferral of some capital projects.”
The City continues its commitment to work with our citizens and businesses to help not only weather the current economic challenges but to emerge even stronger.
The City will provide information on financial strategies as they are confirmed.