The COVID-19 Pandemic has impacted Saskatoon finances and city administration has developed a strategy to deal with the aftermath.

The strategy will be presented to City Council on Monday and will include points to maintain civic services, reduce expenditures, utilize fiscal stabilization reserves and continue work with other orders of governments on solutions.

City Manager, Jeff Jorgenson says while the impacts are sobering, they feel the situation is manageable, thanks to the prudent financial management practices in place. Jorgenson adds the strategy will be gradual and the City will play an important role with capital programs.

The financial details are outlined in a report set for discussion at the meeting of City Council on Monday. The report includes estimates from multiple scenarios of when restrictions will end, along with potential savings currently being accumulated and sees possible deficits between $22.0 million to 68.6 million. If there is a remaining deficit that is not covered by relief packages, the Administration is recommending City Council consider making adjustments to the 2021 operating and capital budgets.

The total estimated negative impacts of COVID-19 on the City of Saskatoon for the three scenarios are:

• Restrictions End June 30 – approximately $32.2 million
• Restrictions End September 30 – approximately $52.7 million
• Restrictions End December 31 – approximately $68.6 million

Offsetting savings attributable to items such as fuel, cost reduction, reduced workforce, reduced bulk power charges, and utility stabilization reserves. With these savings included, the preliminary projected preliminary deficits would be:

• Restrictions End June 30 – Deficit of approximately $20.2 million
• Restrictions End September 30 – Deficit of approximately $32.0 million
• Restrictions End December 31 – Deficit of approximately $43.0 million

The federal government is being asked to consider a relief program for the municipal sector, but the outcome of the request is uncertain. However, the Administration has proposed several options to manage the remaining COVID-19 shortfall, including:

• Hiring freeze
• Non-essential spending freeze
• Travel and training reductions
• Cost reductions for park maintenance due to reduced staffing levels
• Use $2.8M of fiscal stabilization reserve in 2020; hold remaining $2M for 2021.

Factoring in these savings totaling $9.5 million for 2020, the remaining projected deficit would be reduced to:

• Restrictions End June 30 – approximately $10.1 million
• Restrictions End September 30 – approximately $22.0 million
• Restrictions End December 31 – approximately $32.9 million

If the Administration’s recommended strategy is approved, the City will have offset the majority of the negative impacts of COVID-19. For

example, for the September 30 Scenario, savings of $32.7 in total will offset the $52.7 million of negative COVID-19 impacts, resulting in a net projected deficit of $22.0 million.