The financial costs of the pandemic to the City of Guelph keep mounting.
A second quarter year-end variance report by the city estimates a negative variance of $13 million this year.
The report says the city is projecting $10 million in net losses and is also allowing for another $3 million in net losses due to “future unknowns.”
The $13 million projected negative variance will be offset by just over $12 million in emergency funding the city recently received from upper levels of government.
The city expects revenue losses of $20.7 million, plus additional expenses of $3.6 million because of COVID-19. Mitigation measures have saved the city $14.3 million.
“As Council is aware, the greatest risk to the 2020 financial results is the ongoing COVID-19 pandemic,” says the report.
“However, as the situation has been changing, and health authorities not certain when the pandemic will end, or if a second wave will occur, staff have provided for an additional deficit of $3 million. The city could experience a year-end deficit up to $13 million.”
“Likely, the impacts will continue for years as the businesses and employment in our community change, working-from-home becomes much more prevalent and the Province enacts new legislation to help mitigate pandemic emergencies in the future.”
The report details projected year-end revenue losses by department.
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Transit: $8.1 million mainly due to waived transit fares and the cancellation of the University of Guelph student bus pass program.
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Parks and Recreation: $3.2 million due to closure of facilities, cancellation of programs, memberships, and events and bookings.
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Culture, Tourism, and Community Investment: $2.6 million due to cancellation of shows and events.
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Infrastructure, Development and Enterprise Services Environmental Services: $368,000 due to closure of the public drop-off and reduced tipping fees resulting from lower construction and demolition tonnage.
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Planning and Building Services and Engineering and Transportation Services: $832,000 due to reduced development activity levels and pausing of subdivision and construction projects from the provincial closure order.
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Parking Services: $2 million due to relief and waiver of monthly parking fees, loss of event parking revenue, and reduced demand for transient (daily parking).
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Court Services: $952,000 (split between the city and county) due to mandated closure of courts and an additional $410,000 due to reduced charge base, and no enforcement or collection activities taking place for Provincial Offences Act.
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General Revenues: Loss of investment income is projected at $500,000 due to the Bank of Canada decreasing interest rates.
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Supplementary taxation: $500,000 due to lower development activity and $781,000 for the waiver of penalty and interest revenue on taxes.
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Local Boards and Shared Services: Guelph Police Services has projected revenue loss of $200,000 due to lower number of record checks. Guelph Public Library has projected revenue loss of $98,000 from lack of fines, room rentals, printing and merchandise.
