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Town of Canmore response to COVID-19 shutdown affects 140 positions

In addition to having 41 per cent of the municipality's staff positions affected as a result of closures to prevent the spread of COVID-19, officials with the Town of Canmore estimate it will lose $2 million in revenue from mid-March to the end of July
Canmore

CANMORE – The closure of municipal facilities like Elevation Place as a result of restrictions in place to prevent the spread of COVID-19 has resulted in layoffs and lost revenues for the Town of Canmore.

Current estimates put lost revenues at $2 million as a result of the closures for the period of mid-March to the end of July, while 140 positions have been affected by the situation, including 23 positions that were cut effective Friday (April 24).

“This isn’t something that I’m happy to say, but we’ve laid off [116] of the Town’s staff and that was one of the first things we did a month ago, just responding to reality,” said Mayor John Borrowman about Canmore’s response to the public health crisis.

“We didn’t want to have to, but we had to do it.”

Layoffs started March 23 when 93 casual and contract positions were cut, which reduced the Town’s monthly payroll by approximately $60,000.

Starting April 24 to May 8, the Town announced temporary layoffs to 23 full and part-time positions, which equals $110,000 in monthly savings.

The Town also suspended hiring new or vacation positions meaning a total of 140 jobs are affected.  

The first layoffs were for positions at Elevation Place (EP) and the Canmore Rec Centre. Both, which were shut down on March 16 before the province's chief medical officer of health enacted restrictions on the public attending gyms, swimming pools, arenas and museums on March 18. 

“Right off the bat, there was a lot of staff that had no work to do,” Borrowman said.

While there is a savings for the municipality as a result of the layoffs, general manager of corporate services Therese Rogers said that amount is small when compared to the losses expected to the Town's revenues. 

“We are expecting a $2 million loss of revenue from mid-March to end of July,” Rogers said during a pandemic financial response update Tuesday (April 21).

The economic blow includes an estimated loss of $600,000 in facility rentals and leases; $500,000 in EP memberships and drop-in fees; and $240,000 from cancelled rec programs and lessons.

“We’re not alone,” Rogers said.

“This revenue loss is a problem for municipalities across the country … Calgary expects to [lose between] $350 million to $400 million for the next six months.

“And while our number is clearly smaller, the revenue losses will have a significant impact on Canmore.”

Due to the lost revenue, the Town is exploring ways to reduce expenses including: using $4 million in the tax stabilization reserve; further staffing and service level reductions; requesting reductions from affiliate budgets like artsPlace, WildSmart, and Canmore Public Library, among others; and reduction of the approved 2020 budget's transfer to reserves.

“Our loss in revenue will exceed the current $2 million estimate if closures and other measures go beyond July,” Rogers said.

 

Follow RMOToday.com's COVID-19 special section for the latest local and national news on the coronavirus pandemic, as well as resources, FAQs and more.


Jordan Small

About the Author: Jordan Small

An award-winning reporter, Jordan Small has covered sports, the arts, and news in the Bow Valley since 2014. Originally from Barrie, Ont., Jordan has lived in Alberta since 2013.
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