Consultations:

City Departments and Agency, Boards & Committees

Conclusion:

With the significant and unprecedented measures that the City has undertaken in response to the COVID-19 crisis, staff has committed to provide Council with an assessment of the current and projected financial implications related to the City’s Operating Budgets for 2020. Given how early in the year this report is being prepared and the evolving situation with COVID-19, staff has had to make a significant number of assumptions regarding additional costs or lost revenues in producing this report. Staff has also made efforts to capture costs that have been avoided due to changes in services being provided. Staff will continue to monitor, update and report on these impacts and assumptions in the regular Quarter Operating Variance Reports.

Based on current early projections and assumptions to date, the anticipated net financial impact of the City’s response to the COVID-19 pandemic to the end of April is estimated at $5.05M however once the noted annualized items are included this brings the total to an estimated $11.15M deficit. This consists of $11.38M of foregone revenue and $1.36M of additional costs net of confirmed funding from senior levels of government, which are partially offset by $1.59M of avoided costs. It is noted however; that significant outstanding variables, additional costs and foregone revenues exist that cannot be estimated at this time but will become clearer as the year progresses. Therefore, it is extremely difficult to project with any degree of certainty at this time the full financial impact to the City of this emergency event. The longer and more protracted the timing of the emergency along with the ongoing uncertainty surrounding the extent, timing and level of the economic rebound make it very difficult to estimate the full financial impacts with any degree of certainty.

The Federal and Provincial governments have made several funding announcements over the past few weeks in response to the COVID-19 pandemic. The City has received confirmation of $5.2M in additional funding, primarily for Housing that has been included in this analysis. There have been several other funding programs announced, which principally are focused on addressing impacts in the private and not-for-profit sectors. However, efforts are underway across the country to highlight the financial crisis facing municipalities as well as a result of the pandemic and to urge senior levels of government to provide necessary emergency financial supports to municipalities to address these fiscal challenges.

Staff are reviewing other opportunities, as it relates to some of the costs of programs cancelled due to the pandemic. Administration will continue to amend the financial impact analysis for any potential subsidy offsets and bring forward recommendations to mitigate any deficit as part of the Quarterly Variance reports.

Planning Act Matters: