SASKATOON -- The COVID-19 pandemic could leave the City of Saskatoon with a deficit in the tens of millions, according to a new report.
“The pandemic has been like nothing most of us have ever experienced in our lifetimes,” City Manager, Jeff Jorgenson said in a news release.
“The impacts of the pandemic have had a profound impact on the City’s finances. While sobering, we feel the situation is manageable, thanks to the prudent financial management practices in place.”
Administration will present a proposed strategy to City Council on Monday which includes:
- maintaining civic services
- cutting spending
- using fiscal stabilization reserves
- continuing to work with other orders of government on solutions
In the wake of the provincial government’s plan to re-open the Saskatchewan economy, the report looks at three financial impact scenarios of when physical distancing restrictions could be lifted and services reopen.
The COVID-19 pandemic could cost the city up to $68.6 million in revenue depending on when restrictions are lifted.
However it could also bring savings in the form of fuel cost reduction, reduced workforce, reduced bulk power charges and utility stabilization reserves. With Administration’s proposed $9.5 million in savings included, the preliminary projected preliminary deficits would be:
- Restrictions end June 30 – $10.1 million
- Restrictions end Sept. 30 – $22.0 million
- Restrictions end Dec. 31 – $32.9 million
If there is a remaining deficit that is not covered by relief packages, administration recommends City Council consider changing the 2021 operating and capital budgets.
“Taking this approach will allow the City to adapt to the ever-changing landscape in front of us, and will allow us to provide an economic stimulus role – this year – in 2020 – with construction and other capital projects already in the budget,” Jorgenson said.
“We’ll then be able to continue working with the other orders of government on relief solutions.”
