City of Regina forecasts $15M financial hit from COVID-19 pandemic in 2020
The city is still forecasting a small surplus after getting millions in provincial, federal grants
Regina residents are getting a snapshot of how the COVID-19 pandemic has affected city finances.
The executive committee is set to discuss the city's finances on Wednesday, Dec. 9. In the agenda for that meeting, city administration is forecasting that the general fund will have lost about $15.5 million because of the COVID-19 pandemic.
In April, city administration projected the city's general fund could lose between $11.7 million and $20.3 million. At the time, the city stopped filling vacant positions, reduced purchased services and travel, and postponed millions in capital programs and projects.
Provincial, Federal funding keeping Regina in the positive
the report says provincial and federal funding has helped with projects and operations for the city. Overall, administration says the general fund will have a net surplus of $2.8 million for 2020.
Funding from the province's Municipal Economic Enhancement Program (MEEP) helped with the majority of the capital projects that were put off by the pandemic.
City administration says in the report that more than $7 million was able to still be in the general fund.
In September the city received almost $16.3 million from the federal Safe-Restart Canada Plan. About $3.5 million went toward transit and $12.8 went to general operations.
Administration is recommending $2 million from the federal funding be used for the Regina Economic Recovery Grant Program that gives small businesses and community organizations grants to kick start local projects.
If all recommendations are approved, the general fund at the end of the year will be at its minimum recommended balance of $23 million.
Money woes aren't over yet
City administration is also recommending the creation of a COVID-19 recovery reserve.
It projects that the pandemic will impact the city's operations to the tune of $8 million to $12 million in 2021. The reserve would cover the one-time operating costs.
Debt for the Regina Exhibition Association Limited (REAL) has ballooned from $8 million to $21 million over the pandemic. City administration is recommending the city give REAL a grant of $700,000 so it can pay it's interest payments and continue operations.