| Preliminary Summary of Estimated COVID Financial Impacts | ||||||
| Foregone Revenues | AdditionalCosts | Avoided Costs | Grant Funding2 | Net Impact | ||
|---|---|---|---|---|---|---|
| Transit Windsor | $2,150,000 | $500,000 | $1,000,000 | ($1,650,000) | ||
| Recreation & Culture | $1,000,000 | $20,000 | ($1,020,000) | |||
| Housing & Children's Services | $5,182,471 | $5,182,471 | $0 | |||
| Huron Lodge | $170,000 | $75,000 | ($95,000) | |||
| Windsor Fire & Rescue | $330,000 | ($330,000) | ||||
| Provincial Offences | $210,000 | ($210,000) | ||||
| Parking Operations | $170,000 | ($170,000) | ||||
| Other Departments | $150,000 | $410,000 | $40,000 | ($520,000) | ||
| Corporate Impacts | ||||||
| Staff Lay-offs (TPT/Seasonal) | $400,000 | $400,000 | ||||
| OLGC Casino | $1,600,000 | ($1,600,000) | ||||
| Utilities | $150,000 | $150,000 | ||||
| Total COVID Impacts - April 30, 2020 | $5,280,000 | $6,612,471 | $1,590,000 | $5,257,471 | ($5,045,000) | |
| YQG & WDBL Dividends 1 | $2,000,000 | ($2,000,000) | ||||
| Interest & Penalties 1 | $2,500,000 | ($2,500,000) | ||||
| Municipal Accomodation Tax 1 | $1,600,000 | ($1,600,000) | ||||
| Total Annualized COVID Impacts | $6,100,000 | $0 | $0 | $0 | ($6,100,000) | |
| Total Overall Projected Financial Impact | $11,380,000 | $6,612,471 | $1,590,000 | $5,257,471 | ($11,145,000) | |
| Notes | ||||||
| 1 | Due to the nature of these items, projection is to the end of 2020 | |||||
| 2 | Federal & Provincial Grants are for their fiscal year from April 1, 2020 to March 31, 2021 | |||||
Budget Variances
Section 290(4) of The Municipal Act, states that the municipality shall provide for any deficit of the previous year in preparing their annual budget. Therefore, any amount remaining of the forecasted deficit that is not funded from grants made available from higher levels of government will need to be reflected in the development of the 2021 operating budget unless other measures are adopted by Council to fund said deficit.
Other potential measures that could be considered to offset the forecasted COVID-19 pandemic operating budget deficit could include:
Funding from senior levels of government
Funding from various Non-Statutory City Reserves
Reduction of discretionary spending and one-time service level adjustments in 2020
Deferral of 2020 approved capital projects where and if possible
A one-time special tax levy in 2021
Options to address and offset any 2020 operating budget deficit will be presented to City Council at such future date as we have more clarity to the budget shortfall amount and any funding that may be provided by the senior levels of government.