LaSalle, Ont. is losing money but the town will be okay according to its first monthly financial report during the COVID-19 pandemic.
Director of Finance Dale Langois reported a $260,000 loss over the last three weeks at Tuesday night's council meeting due to lost revenue from facilities, investments, waved fees and taxes.
Langois says the town put away $4.2-million in its Stabilization Fund for a rainy day, and it's currently pouring.
"We do have more than enough in that account to cover us for this year for sure," he says. "We also have the risk of flooding that could potentially cost us some money if the water levels continue to rise."
He says the Vollmer Complex isn't generating any revenue to offset its operating costs and it's a major expense.
"It's not as easy as flipping a switch and turning off the Vollmer Complex. If we drain the pool that liners going to dry out and crack, the seals will crack and it's going to cost us more to replace and repair than any savings in hydro and staffing costs to keep it running," says Langois, who adds removing the ice from both hockey rinks would cost more to try and replace it come fall.
The town is also missing out on a ton of cash after The Bank of Canada lowered the prime interest rate due to the crisis.
"We were earning about three per cent on our bank account balances; that's been drastically reduced as the primary has gone down. That's a large impact and a future impact until the economy gets going again and the Bank of Canada increases its prime rate," he says.
Langois responded to comments from some residents who think the town is saving money and should provide rebates.
He says more than 95 per cent of the budget goes to services that must continue such as fire, infrastructure, policing, water and power, and waste pickup.
The town will be issuing a monthly report on finances during the COVID-19 pandemic moving forward.