Port Moody’s mayor says a budget in a crisis like the current COVID-19 pandemic needs a crisis budget.
Tuesday, Vagramov told councillors on the city’s finance committee the budget process should be put on hold so staff can come back with a list of cost-cutting options. He said residents coping with the loss of jobs or wages brought on by the pandemic may not be able to pay their property taxes on time this year, let alone absorb the 3.62% increase recommended in a staff report.
But a majority of councillors disagreed. They voted to endorse the recommendation that will now go to council for its first three readings before it’s adopted by May 15.
Vagramov said that’s a mistake.
“We are moving forward with a pre-crisis budget in a time of extreme financial uncertainty and looming economic recession,” he said, adding, “I don’t know what my council colleagues have been reading in the news.”
Earlier, Port Moody’s finance manager, Paul Rockwood, said the recommended budget would maintain the city’s services at 2019 levels. It also anticipates almost $700,000 in lost revenue, along with increased expenses to deal with the pandemic.
As well, Rockwood said, the city can’t expect its share of money it was hoping to get from a partnership with Pattison Outdoor Advertising to erect two digital billboards at the western entrance to the city along the Barnet Highway and at the intersection of the Barnet and Ioco Road.
Each of those billboards is expected to earn the city a guaranteed annual average of $377,000 for the next 25 years, but, Rockwood explained, Pattison has frozen construction because of the pandemic. He said the city will still get its $300,000 signing bonus for each billboard.
Several councillors said the last thing suffering citizens need is cuts to city services at a time they may be most needed.
“I don’t think now is the time to be making huge cuts to the budget when we may, in fact, be needing services more,” Coun. Meghan Lahti added.
Vagramov said many services have already been cut due to emergency restrictions mandated by the province. He reiterated further cuts by the city may not happen. But, he said, the city should be exploring the possibilities, should the need for more paring be required.
Vagramov told The Tri-City News it wouldn’t be fair to saddle residents “with a fat tax bill during a time of market turmoil, international emergency and financial ruin.”
He added, “it’s a pretty dire financial situation out there for a lot of people.”
Tuesday, Port Coquitlam council eliminated its planned .48% tax hike. It also extended the time property taxes must be paid to Sept. 2.
Rockwood suggested lowering the proposed tax increase by 2% would mean cutting about $870,000 from the city’s planned expenditures.
Lahti said that number scares her.
“There is no way there is that much wiggle room without losing people,” she said. “Now is not the time to be doing that.”
Last week, several municipalities in Metro Vancouver announced temporary layoffs of city workers, including 1,500 in Vancouver.
“If you cut jobs, you don’t get them back as easily,” Coun. Zoe Royer said. “People’s lives are at stake.”
