Scugog provides update on expected financial situation from COVID-19

DAN CEARNS The Standard

SCUGOG: The Township of Scugog has some preliminary estimates of how the COVID-19 pandemic situation will affect the municipality financially. “Closing of the recreation facilities, from March 17th to April 5th, may result in an estimated net loss of revenue of $90,900. This includes a loss of revenue of approximately $140,000 offset by lower expenditures, directly related to programs and facility cancellations of $49,600,” wrote a township spokesperson in an email to local media members. The COVID-19 situation has forced Scugog staff to review the municipal operating and capital budgets. “Additionally, staff have also reviewed every line item in the Operating budget to determine items/projects that can be deferred or postponed. Staff have identified a total of $1.1 million in expenses that could be deferred, until at least September 1st, 2020, and a loss of approximately $890,000 in revenues, for a net decrease in expenditures of approximately $219,700. This analysis assumes the current situation, of facility closures and program cancellations, continues to September 1st,” the spokesperson explained. “Staff also reviewed every project in the Capital Budget. Staff identified 21 projects, totalling $1.9 million, that can be deferred until at least September 1st, 2020. As well, another three projects that are grant dependent totalling an additional $1.9 million [have been identified]. All current staff vacancies are being postponed at this time. And three new positions approved by council in the 2020 budget, are also being deferred.” In late 2017, Scugog reached a deal for regular compensation from the Ontario Lottery and Gaming Corporation (OLG) of about $874,620 for providing services like road work, snow plowing and fire services. The Township states their municipal service agreement with the OLG “should not be impacted,” despite the closure of Ontario casinos. Regarding the deal’s regular payments, a township official stated Scugog received a “quarterly payment on April 1st of $231,925.90.”