COVID-19 delivers $1.6 million hit to Penticton’s reserves

Penticton has only received $338K this year in their share of casino income

Cascades Casino has been forced closed since March due to COVID. It's caused a $1.6 million hit to the City of Penticton's reserves.(Gateway Casinos image)

The City of Penticton will be short $1.6 million from Cascades Casino after COVID-19 forced the business to close its doors earlier this year.

As part of the operations in the municipality, a portion of Cascades Casino’s income is shared by the province with Penticton.

That portion totalled $1.86 million in revenue for 2019, which went into the city’s Gaming Reserve.

The reserve is used for specific projects, with any usage requiring council’s approval. As of December 2019, the reserve held $2,630,767 in funds.

This year, after having to shut down in March due to COVID-19, the city has only received $338,000 from the casino, out of a budgeted $2 million for the year.

That shortfall has resulted in a predicted shortfall of $1.6 million by the end of the year, according to Angela Campbell, the city’s manager of finance.

Separate from the shared casino income, Cascades Casino also provides the city revenue through its lease, taxes, and utilities.

The lease for 2020 was budgeted for $286,000, of which the casino has deferred $175,000. The casino provides approximately $40,000 in taxes and $264,000 in utilities.

The City of Penticton is currently working with Cascades Casino’s parent company Gateway Casinos and Entertainment Ltd. regarding repayment terms for the deferred lease.

The city’s general manager of finance Jim Bauer noted that the city is in a stable financial position to continue deferring the payments until the casino re-opens.

When that might be, or even if casinos will be allowed to reopen before there is a vaccine, will be taken into account during the November planning for 2021’s budget.

To report a typo, email: editor@pentictonwesternnews.com.


@PentictonNews
newstips@pentictonwesternnews.com

Like us on Facebook and follow us on Twitter.

Business and IndustrialFinancesMunicipal Government

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The plane blasted through an airport fence and down a hill, before stopping before a cement barrier on Highway 5A, right in front of a school bus. Photo submitted.
Student pilot crashes plane onto Highway 5A in Princeton

Aircraft hit pavement right in front of school bus

Interior Health nurses administer Pfizer-BioNTech COVID-19 vaccines to seniors and care aids in Kelowna on Tuesday, March 16. (Phil McLachlan/Kelowna Capital News)
69 new cases of COVID-19 in Interior Health

The total number of cases in the region is now at 9,840 since the pandemic began

Kelowna General Hospital (File photo)
Interior Health hospitals not strained by rising COVID case counts

While provincial hospitalizations rise, health care systems in the B.C. Interior remain robust, say officials

The Urgent and Primary Care Centre on Martin Street has officially opened today, March 31, 2021. (Brennan Phillips - File)
Funding denied for Penticton primary care facility

Urgent and Primary Care Centre designated a hospital, but request for $1M in funding denied

A woman wears a protective face covering to help prevent the spread of COVID-19 as she walks past the emergency entrance of Vancouver General Hospital in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
Top doctor warns B.C.’s daily cases could reach 3,000 as COVID hospitalizations surge

There are more than 400 people in hospital, with 125 of them in ICU

Vernon Fire Rescue Services responded to a truck fire on Dallas Road in Vernon April 15, 2021. (Brendan Shykora - Vernon Morning Star)
WATCH: Vernon firefighters quick to douse fully involved truck fire

The fire was near multiple structures and spreading along the ground upon crews’ arrival

The father of Aaliyah Rosa planted a tree and laid a plaque in her memory in 2018. (Langley Advance Times files)
Final witness will extend Langley child murder trial into May or June

Lengthy trial began last autumn with COVID and other factors forcing it to take longer than expected

The corner of 96th Avenue and Glover Road in Fort Langley now has traffic signals, and new “touchless” signal activation buttons. (Matthew Claxton/Langley Advance Times)
Busy Fort Langley intersection gets ‘touchless’ crosswalk signals

The new traffic light started operation in April

Fire crews tend to a collision that is causing severe traffic delays on the William R. Bennett bridge headed east into Kelowna. (Aaron Hemens - Kelowna Capital News)
7 vehicle collision on WR Bennett Bridge under investigation

The collision backed up traffic on the William R. Bennett bridge for much of the morning

Kelowna company celebrates milestone of producing 46 million masks in under a year.
46 million masks and counting: Kelowna company reaches 1 year milstone

In under a year, Breathe Manufacturing Ltd. in Kelowna has hit production of 46 million masks for front-line workers

The organizer of a Kelowna protest against COVID-19 restrictions was fined by the RCMP for the third time Saturday, Jan. 16, 2021. (File photo)
Kelowna RCMP investigating hit and run involving 11-year-old

Police said the boy suffered minor injuries

A crossing guard stops traffic as students wearing face masks to curb the spread of COVID-19 arrive at Ecole Woodward Hill Elementary School, in Surrey, B.C., on Tuesday, February 23, 2021. A number of schools in the Fraser Health region, including Woodward Hill, have reported cases of the B.1.7.7 COVID-19 variant first detected in the U.K. THE CANADIAN PRESS/Darryl Dyck
COVID-infected students in Lower Mainland schools transmitting to 1 to 2 others: data

Eight to 13 per cent of COVID cases among students in the Lower Mainland were acquired in schools, B.C. says

Most Read