Hamilton mayor says city's deficit could hit $60 million by midsummer

News Apr 28, 2020 by Kevin Werner hamiltonnews.com

Mayor Fred Eisenberger revealed the city could have a $30 million deficit by the end of May, and up to $60 million by the end of July because of the coronavirus pandemic.

“It is an issue affecting all municipalities,” said Eisenberger. “(The coronavirus) is putting us in a fairly deep hole.”

Hamilton has seen expenses skyrocket as it continues providing services such as waste collection, water and wastewater and public works, while other services such as grass cutting and transit are being done on a modified basis. The city’s revenues, though, have taken a significant hit as it continues to lose revenue from fares, parking, fees and tax interest and penalties.

Council has already allowed taxpayers to delay paying their April 30 tax payment, along with waiving any penalties and interest for the next 60 days.

“There are very few sources (of revenue) to go to other than the tax base, or significantly reducing services in our community for the upcoming year,” he said.

Eisenberger said the Federation of Canadian Municipalities has submitted a bailout plan to the federation government that would cost upwards of $15 billion to help municipalities. He said federal officials have understood the problem, but they are holding off on any financial help until later this year.

Hamilton mayor says city's deficit could hit $60 million by midsummer

City has seen expenses skyrocket while its revenues have taken a significant hit.

News Apr 28, 2020 by Kevin Werner hamiltonnews.com

Mayor Fred Eisenberger revealed the city could have a $30 million deficit by the end of May, and up to $60 million by the end of July because of the coronavirus pandemic.

“It is an issue affecting all municipalities,” said Eisenberger. “(The coronavirus) is putting us in a fairly deep hole.”

Hamilton has seen expenses skyrocket as it continues providing services such as waste collection, water and wastewater and public works, while other services such as grass cutting and transit are being done on a modified basis. The city’s revenues, though, have taken a significant hit as it continues to lose revenue from fares, parking, fees and tax interest and penalties.

Council has already allowed taxpayers to delay paying their April 30 tax payment, along with waiving any penalties and interest for the next 60 days.

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“There are very few sources (of revenue) to go to other than the tax base, or significantly reducing services in our community for the upcoming year,” he said.

Eisenberger said the Federation of Canadian Municipalities has submitted a bailout plan to the federation government that would cost upwards of $15 billion to help municipalities. He said federal officials have understood the problem, but they are holding off on any financial help until later this year.

Hamilton mayor says city's deficit could hit $60 million by midsummer

City has seen expenses skyrocket while its revenues have taken a significant hit.

News Apr 28, 2020 by Kevin Werner hamiltonnews.com

Mayor Fred Eisenberger revealed the city could have a $30 million deficit by the end of May, and up to $60 million by the end of July because of the coronavirus pandemic.

“It is an issue affecting all municipalities,” said Eisenberger. “(The coronavirus) is putting us in a fairly deep hole.”

Hamilton has seen expenses skyrocket as it continues providing services such as waste collection, water and wastewater and public works, while other services such as grass cutting and transit are being done on a modified basis. The city’s revenues, though, have taken a significant hit as it continues to lose revenue from fares, parking, fees and tax interest and penalties.

Council has already allowed taxpayers to delay paying their April 30 tax payment, along with waiving any penalties and interest for the next 60 days.

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“There are very few sources (of revenue) to go to other than the tax base, or significantly reducing services in our community for the upcoming year,” he said.

Eisenberger said the Federation of Canadian Municipalities has submitted a bailout plan to the federation government that would cost upwards of $15 billion to help municipalities. He said federal officials have understood the problem, but they are holding off on any financial help until later this year.