The financial position of the Corporation is directly affected by uncontrollable factors such as COVID 19, weather conditions, unemployment rates, tax appeals, fuel and utility costs, interest rates, settlement of litigation brought against the City and social assistance caseloads. As a result, material fluctuations in the projected variances could occur in the wake of significant unforeseen events.

Based on information as at August 31 st , 2020, Administration is projecting an estimated Corporate (including GBEs) year-end deficit of $9,806,000 (COVID-19 Deficit of ($18,764,000) offset by Non-COVID-19 positive variance of $8,958,000). This projection does not take into account the previously noted $1.5 million contingency amount, which is expected to be transferred to the budget stabilization reserve and/or other appropriate reserves as may be determined at year end. Past practice as been to also transfer any year-end positive variance to the budget stabilization reserve. Given the financial impacts resulting from the COVID 19 pandemic on City operations, this will not be feasible this year. It is expected that a majority of any remaining positive variance at year-end will be required to offset deficits resulting from COVID 19 impacts.

Table A below provides a summary of the 2020 projected year-end variances as of the 2020 3 rd quarter, from the largest dollar deficit to the largest surplus, for each of the City Departments and Agencies, Boards, Commissions & GBEs.