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

(Submitted)
Penticton apartment fire claims two lives

An apartment on Elm Avenue went up in flames Tuesday morning

A Summerland woman has set up an online fundraiser to provide backpacks to those being released from correctional facilities.(ca.gofundme.com)
Summerland woman raising money for backpack program

Backpacks will be distributed to those being released from correctional facilities

There has been COVID-19 exposures at two elementary schools in District 42. (Image courtesy CDC)
Interior Health reports 24 additional COVID-19 cases

This includes three school exposures in Kelowna

MLA Dan Ashton (Contributed)
Penticton MLA won’t seek leadership of B.C. Liberals

Dan Ashton believes a moderate leader with broad appeal is needed

DriveBC camera.
Vehicle into ditch on Highway 97C

The crash happened about 8:15 a.m. Tuesday

Provincial health officer Dr. Bonnie Henry arrives for briefing on the COVID-19 situation, B.C. legislature, Oct. 26, 2020 (B.C. government)
B.C. records 217 more COVID-19 cases, mask use urged

Infection spike continues, 21 senior facilities affected

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Los Angeles Dodgers celebrate after defeating the Tampa Bay Rays 3-1 to win the baseball World Series in Game 6 Tuesday, Oct. 27, 2020, in Arlington, Texas. (AP Photo/David J. Phillip)
L.A. Dodgers beat Rays 3-1 to win 1st World Series title since 1988

National League champs claim crown in six games

Two have been taken to hospital following a vehicle crash north of Vernon on Highway 97 Tuesday, Oct. 27, 2020. (Brendan Shykora - Morning Star)
Crash north of Vernon causes Highway 97 traffic delays

Emergency crews respond to two-vehicle incident near Swan Lake; occupants taken to hospital

Seven-year-old Aaliyah Rosa was found dead in an apartment in Langley in July. (Langley Advance Times files)
Child’s body cold, no pulse: Off-duty cop testifies in Langley mother’s murder trial

The seven-year-old girl’s mother faces a first-degree murder charge

(Submitted)
Penticton apartment fire claims two lives

An apartment on Elm Avenue went up in flames Tuesday morning

École de l’Anse-au-sable. (Google Maps)
15 cases of COVID-19 tied to Kelowna Francophone school outbreak

Three other schools in Kelowna are also dealing with potential exposure events

People march during a climate strike in Montreal, Friday, Sept. 27, 2019. THE CANADIAN PRESS/Graham Hughes
Judge rejects 15 youths’ climate change lawsuit against Canadian government

Justice Michael Manson has granted the government’s motion to strike the plaintiffs’ claim

A four-vehicle accident on the Bruhn Bridge in Sicamous destroyed two cars and a section of bridge guardrail but remarkably injured no one. (Sicamous RCMP Image)
Sicamous’ Bruhn Bridge site of two collisions

Although a total of five vehicles were involved, no one was injured

Most Read