Town Faces Budget Shortfall as Pandemic Continues

PORT HAWKESBURY - The Director of Finance for this Cape Breton town is warning that several factors - including the COVID-19 pandemic but also predating its arrival in Canada - could lead to extreme measures as the town tries to contain a looming budget shortfall.

In an interview with TELILE 24/7's Adam Cooke, Erin MacEachen warned that the town could find itself $600,000 in arrears by September if current trends continue, and stressed that this reality will complicate the town's ability to balance its 2020-21 municipal budget, which is due to be levied later this spring. 

MacEachen confirmed that Port Hawkesbury has achieved some savings from the shutdown of several facilities to accommodate Nova Scotia's social-distancing restrictions. She noted that $200,000 in electricity expenses have been avoided by putting the Strait Area Pool, the Port Hawkesbury Civic Centre and all other public gathering spaces on hold for the foreseeable future. 

However, MacEachen noted that the lack of revenue from these facilities will add to a trend of financial downturns that has been growing for the past two years. The Director of Finance described Port Hawkesbury's housing market as "pretty slack" and, while residential tax revenues have been stable during this time, commercial tax revenues have dropped significantly, with a number of town businesses closing their doors or experiencing difficulties in their general operations.