City of Winnipeg projecting more than $50M deficit due to coronavirus

Winnipeg is forecasting a more than $50 million shortfall this year as a result of COVID-19.

In its first quarter financial report released Monday the city projects it’s lost $25.8 million as of March 31 and forecasts the operational budget deficit to grow to $53.8 million by the end of 2020.

In April the city said it could be losing as much as $12 million a month due to the pandemic.

Sharp drops in revenue led the city to temporarily layoff hundreds of city workers and make cuts to services and programs including closing libraries, pools and community centres.

Winnipeg Transit also temporarily laid off staff and reduced bus services, and the city says it’s cut discretionary spending, frozen fleet purchases, and put a hiring freeze in place for the rest of the year.

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Those moves have resulted in $12.9 million in forecasted savings, according to the report.

“The City has been working to address the challenges of the COVID-19 pandemic in order to ensure residents receive the services they depend on,” said Coun. Scott Gillingham, chair of the city’s finance committee, in a release Monday.

“It has been a significant challenge for all departments and will continue to be for as long as the pandemic lasts.

“However, actions taken to date and possible future steps noted in the report follow the COVID-19 Crisis Cash Flow Management Plan and will continue to support the City’s ability to respond and maintain services for residents.”

The financial update will be presented at the finance committee’s meeting Friday.

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Questions about COVID-19? Here are some things you need to know:

Symptoms can include fever, cough and difficulty breathing — very similar to a cold or flu. Some people can develop a more severe illness. People most at risk of this include older adults and people with severe chronic medical conditions like heart, lung or kidney disease. If you develop symptoms, contact public health authorities.

To prevent the virus from spreading, experts recommend frequent handwashing and coughing into your sleeve. They also recommend minimizing contact with others, staying home as much as possible and maintaining a distance of two metres from other people if you go out. In situations where you can’t keep a safe distance from others, public health officials recommend the use of a non-medical face mask or covering to prevent spreading the respiratory droplets that can carry the virus.

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