Forgone revenues totalling $39.4M when combined with additional costs resulting from the COVID pandemic of $16.7M result in a total financial impact to the City of $56.1M. This amount has been offset by reduced expenditures resulting from mitigation measures taken to date of $17.9M and from grant funding from senior levels of government of $28.7M, thereby resulting in a projected net municipal financial deficit to the City of $9.5M. Once the Non-COVID Y/E estimated positive variance of $9.1M is factored in, the total projected municipal variance exclusive of the impacts of various GBEs is a projected deficit of $0.4M for 2020. It is noted, that the $9.1M positive Non COVID related variance would in normal circumstances be transferred to the City’s Budget Stabilization Reserve Fund at year end. Given however, the extraordinary deficits faced in 2020 as a result of the COVID 19 Pandemic it will be necessary to utilize this deferred transfer to the Reserve Fund to address the impacts in 2020.
| Summary of COVID 19 & 2020 Year-End Financial Projections (Millions) | |||
|---|---|---|---|
| July 2020 | Oct 2020 | Variance | |
| Foregone Revenue | $35.9 | $39.4 | ($3.5) |
| Additional Expenditures | $16.1 | $16.7 | ($0.6) |
| Total Estimated COVID 19 Financial Impacts | $52.0 | $56.1 | ($4.1) |
| Less: | |||
| Reduced (Mitigated) Corporate Expenditures | $16.7 | $17.9 | ($1.2) |
| Announced Federal and Provincial Grants | $5.6 | $28.7 | ($23.1) |
| Remaining COVID 19 Financial Deficit to be Offset | $29.7 | $9.5 | $20.2 |
| Less: | |||
| Projected Q3 Non-COVID 2020 YE Positive Variance | $9.1 | ||
| Total Municipal Q3 2020 Y/E Deficit Projection | $0.4 | ||
| Add Government Business Enterprises (GBEs): | |||
| YQG Windsor International Airport | $3.2 | ||
| Windsor Detroit Borderlink Limited (WDBL) / Windsor Detroit Tunnel Corporation (WDTC) | $6.2 | ||
| Overall 2020 Projected Y/E Deficit Including GBEs to be Offset by Additional Federal & Provincial Grants | $9.8 | ||