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

• 3. The residents’ hesitation to return to their normal activities once the restr ictions 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 additional senior level funding that will be made available to municipalities to offset the financial burden of the COVID Pandemic in 2020 and future budget years.

• 6. 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.

As usual in a normal year, there are a number of other potential risks that can impact the year-end financial results as follows:

1. The Net Tax Additions/Reductions account is extremely difficult to project with certainty. There are still some significant appeals in progress and any variances in this account will vary dramatically based on the outcomes and timing of the settlements.

2. Current macro and micro economic conditions such as fuel costs, changes to local unemployment rates, volatility of energy costs, commodity prices and interest rates, as well as supply and demand for products and services.

3. Seasonal variability with respect to revenues (e.g. Recreation fees) and expenses (e.g. winter control).

4. Potential increase in staffing costs due to factors such as sick call replacement, modified duties (particularly in mandated or 24/7 operational areas), WSIB, joint job evaluation or other arbitration decisions, health benefit usage (Green Shield) and such other. Some of these costs may be covered by corporate provisions/reserves.

5. Potential increase to unavoidable expenditures such as unavoidable repairs and maintenance, related purchases of materials and supplies, legal expenses, streetlight maintenance, etc.

6. The significant use of estimates, historical knowledge and judgment in developing budgets and projecting actual expenses for the year implies that actual year-end revenues and expenditures may differ significantly from quarterly projections. One way to mitigate this risk and help to offset any unexpected or one-time variances is by way of the annual $1.5 million corporate contingency account.