Red Deer’s Downtown Business Association has to draw from reserves to meet its budget after “a most challenging year,” said executive-director Amanda Gould.
City council was told on Monday that the 2021 DBA budget was $135,000 less than the year before — a 32 per cent reduction due to provincial budget cuts and COVID-related non-payments on the downtown business levy.
As a result, Gould said the DBA operated with reduced staff. “We were a team of three,” she said, absorbing the work of a fourth staff person on reduced hours, operating four days a week.
Because of COVID 19, some activities and programs have been cancelled or delayed “and may result in addition savings to the budget.”
Despite this financial crunch, Gould added the association was still able to deliver a variety of programs and about 100 events — including the summer Wednesday market, the Ross Street patio programming, a crime prevention and storefront improvement subsidies.
Coun. Victor Doerksen, who was recently appointed to the DBA committee, asked about the state of reserves and how long the association will be able to draw on them to meet budgetary shortfalls.
Gould responded there is $140,000 left in reserves, after $28,000 recent draw to meet budget requirements. A series of more such withdrawals would not be sustainable, she added. But Gould stressed it was necessary this year because of a decision not to increase DBA levies on businesses financially impacted by the pandemic.
For the third consecutive year, levies will remain at 2020 rates.
Gould predicted 2022 will be an important year as the downtown will be re-branded, based on public input.