Risk Analysis:

While administration has attempted to quantify the impact of the COVID pandemic to the City’s finances, it is still very early in the process to provide any degree of certainty as to the full financial impacts to the Corporation. There remain many variables, including

1. The length of the crisis. It is still unknown when the restrictions will be lifted. Although we have projected the financial impacts to the end of April, the COVID crisis may last for several additional months.

2. The length of the transition period for things to return to “normal”. entire seasons may be lost even if restrictions are lifted.

In some cases,

3. The residents’ hesitation to return to their normal activities once the restrictions are lifted may further delay the financial recovery for the City

4. The additional requirements and regulations that the City and others must follow as we transition and eventually return to a normal state.

5. The amount of senior level of funding that will be made available to municipalities to offset the financial burden of the COVID Pandemic

Other Potential Risks

Building Permit Revenue – While building permit activity for the beginning of the year has remained stable, a general slow down in the economy as a result of the COVID pandemic may negatively impact the summer construction season, resulting in less construction activity in the City. Currently, due to low interest rates and other incentives, there are many projects lined up for development. Administration will continue to monitor activity as the year progresses.

Pollution Control – There is a risk of significant maintenance and/or replacement costs for pumps caused by the increased use of disinfecting wipes that are being disposed of in the City’s sewer system due to the COVID pandemic. Staff will continue to monitor this area and report any significant variances.

Revenue Recovery from Capital Projects – Wages for staff who are redeployed or working on other tasks are not currently being recovered from capital budgets. This may cause a revenue variance in Operating. Capital will benefit in the short term from the delay in costs being charged to projects, but once the staff are back to their normal jobs, they will start being recovered from capital again. Therefore, this is only a delay in expense to capital. Overall, the Corporation may have an increased expense by virtue of paying wages for staff that were budgeted to be recovered, but were redeployed.

Agency, Boards and Commission Impacts

Enwin Dividends – The City budget’s a $4M dividend from Enwin. Preliminary indications are that payment of this dividend may be at risk due to the reduced energy consumption as a result of industry that has either reduced capacity of closed their facilities. It is still premature to determine if all or part of the budgeted dividend will be received. WUC has also projected a decrease in industrial/commercial water