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Sault Ste. Marie expected to lose more than $1 million in revenue by end of May
SAULT STE. MARIE --
Sault Ste. Marie is expected to lose more than a million dollars in revenue by the end of May.
City councillors in Sault Ste. Marie learned this week just how much money the city is losing as a result of COVID-19.
With transit shut down, ice rinks closed and no money coming in from parking meters, city officials are anticipating a million dollar shortfall by the end of May.
Layoffs and other cost saving measures will allow the city to save $375,882 during that time.
This would help offset the cost and make the shortfall $664,387.
The city says these projections are based on numbers from 2019.
Councillor Matthew Shoemaker was quick to point out that these numbers do not include the city’s share of the casino’s profit.
Last year the city received at least $350,000 from the Ontario Lottery and Gaming Corporation, each quarter.
Showmaker says the city will lose so much more if the pandemic carries on through the summer and into the fall.
"It will probably end up somewhere at the range of 2 to 3 million. What we learn last night we’re just under 1 million short in our budget right now." said Shoemaker.
"It depends how long the casino revenues don’t come in and it depends how long things like sports fields and recreational facilities are shut down for and the lost revenues from them."
Malcolm White, the city’s CAO, said the biggest loss of income for the Sault has been from public transit.
With it being an essential service, the city has to offer it.
However no municipality has figured out a way to safely accept a payment, so everyone is riding for free.
The longer that continues, the more money the city will lose.