Sudbury projects $14M loss by end of year due to COVID-19
A financial report outlines the impacts of the pandemic, and ways to save money
The City of Greater Sudbury is looking at ways to cut costs, as it grapples with the financial impacts of COVID-19.
The city is projecting a financial hit of $5.1 million by the end of June — and about $14 million by the end of the year.
Sudbury's CAO, Ed Archer, presented a financial report to councillors during a finance committee meeting on Tuesday.
He said the financial impacts for the city are largely "a revenue driven problem."
"We've seen user fees that we would normally rely on to support several of our operating costs not become available, because the service has changes, or because general conditions in our community — and the world, really — have made it impossible for some of our services ... to even be provided," Archer said.
The report outlines some of the steps the city has already taken to cut costs, as well as further ways to save money this year. But Archer noted the revenue impacts could continue into next year.
"This is not just a 2020 issue," Archer said.
'Really tough decisions'
The projected hit of $5.1 million by the end of June is lower that what the city had previously forecasted last month, when it predicted a loss of $6.8 million.
The adjusted figure is the result of recent measures. Those include reopening landfills, saving money by not filling vacant staff positions, and cancelling summer student employment programs.
Mayor Brian Bigger said city staff have been "looking everywhere to find money, to ensure that we're not going to run into a deficit."
He said he hopes to "preserve and project our finances to keep the minimal amount of pressure on tax increases."
One of the ways to save money, outlined in the report, is by cancelling or reducing budgets for certain capital projects this year. That would include a budget reduction for work on a number of bridges, and cancelling spending on projects such as the Barrydowne bus bay, the library archives, and the Copper Cliff splash pad, among others.
Altogether the savings from the various projects identified by staff would total more than $5 million.
Bigger emphasized the importance of "every penny, every dollar that staff is trying to save."
"These are really tough decisions and yet we're making them," he said.
Councillors voted in support of a resolution to use those savings to partially offset the year-end deficit.
Archer said staff is continuing to look at cost-saving measures. He said in his report to council at its meeting next week, he will talk about plans for restoration of city services that have been cancelled or reduced due to the pandemic.