The City of Richmond might borrow up to $36.5 million to cover revenue shortfalls because of the COVID-19 pandemic.
Council will consider a bylaw at its finance committee meeting on May 4 that would give the city the ability to borrow money to cover a decline in sales of services, payments to other agencies and the possible delay or delinquency of property taxes.
While council kept the property tax due date at its original date of July 2, a decision was made to give property owners until Sept. 30 before any late penalties kick in.
Passing the bylaw, however, doesn’t mean the city will immediately borrow money, as a staff report to council notes.
According to the staff report, the city is in a “sound financial position” and has cash and investments, but given the uncertainty, “it is prudent to have a contingency plan in place for the possibility that some borrowing may be required to maintain liquidity through the pandemic crisis.”
The city also has $9.5 million in credit with its bank.