The City of Guelph is forecasting a $24.3-million deficit this year due to the COVID-19 pandemic.
A staff report to be discussed by city council on Wednesday afternoon shows revenue impacts projected to be $20.7 million, plus $3.6 million in additional costs incurred from the novel coronavirus.
The report states an estimated $14.3 million in savings were made during the pandemic by halting spending, laying off employees, pausing non-critical hiring and cutting services and programs.
In other words, the city is looking at a $10-million shortfall without emergency funding from the provincial and federal governments.
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Ontario municipalities should be receiving $4 billion in aid for operational costs and public transit. Guelph’s slice of the pie has not been determined, but staff expect that to be disclosed in the coming weeks.
The report noted that the city’s reserves can manage the $10-million deficit, but that could be a different story if there is a second wave of COVID-19 or an unexpected event.
The report said that transit continues to be one of the services most affected by COVID-19 with a decreased ridership and increased operating costs.
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The University of Guelph Student Association has voted to opt out of its U-pass program, which is built into student fees since many students are not returning to campus in the fall.
That’s expected to take $3.5 million out of Guelph Transit’s revenues.
The full report can be found on the city’s website.
Wednesday city council meeting to discuss the report gets underway at 2 p.m. and can be streamed online.
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