SUDBURY -- For the first time since the province declared a state of emergency due to the COVID-19 pandemic, the City of Greater Sudbury got a detailed look at the financial implications here in the city.
Local municipalities are doing the best they can to deal with the crisis, but lost revenue due to closures and extra expenses to help combat COVID-19 have had an impact.
"At this point in time, we're managing," said Mayor Brian Bigger. "We're managing just slightly above our budget were about $2.5 million above what we had budgeted for this year."
The report highlights the financial implications until the end of April. In total the city says it's down about $4 million so far. More than $2 million was lost in revenues and another $2 million has gone towards COVID-19 expenses. However, City Councillor Robert Kirwan says the deficit isn't as big as it originally sounds.
"The expenses strictly for COVID will be about another $2 million. But we have to remember that a million and a half of that would have been spent anyway on other matters. But because we're devoting all our staff now to COVID, that $1.5 million has been reallocated to COVID instead of where it was going to be," said Kirwan. "So it's not like we have to find $4 million, we already have a million and a half in the budget anyways, it's just being reallocated that's all."
Kirwan adds that he is hopeful the worst of the financial hit is over.
"I think we now have gotten over the initial portion and we're now settling in to a routine. So hopefully over the next couple of months, the extra costs may not be as significant as they were at the beginning when we were trying to get everything established. Now it's a matter of maintaining what we're doing and hopefully looking at some type of transition into the new normal life that we're going to be having," said Kirwan.
Mayor Bigger says that overall Sudbury is managing the situation.
"In Sudbury, I can tell you, I feel like we're in good shape. That people can be assured that we will return back to normal at some point in time. And that we have a good team of experts at the City of Greater Sudbury, from a financial perspective we're in good financial position," said Bigger.
According to the report the city lost $600,000 in leisure revenue by having to close facilities like pools, arenas and community halls. Also, by offering free bus transit during this time the city will take a financial hit of $650,000 per month as the pandemic continues.
City officials are hopeful that funding from Ottawa and Queens Park will be available to help municipalities bring their budgets back in line. Kirwan adds that tax payers shouldn't worry yet.
"We've got a number of places where it might mean deferring our capital projects but we're not going to be in a situation where were going to have to raise taxes for this. I really can't see us getting to that point." Kirwan said.
Mayor Bigger adds the implications will continue into next year.
"We'll absolutely have a challenging budget in 2021. But the challenge is in ensuring that we're considering both the impact on the challenge to tax payers - to pay their taxes and as well as trying to stimulate return to more normal in our economy situation." he says, summing up.
