After early November blizzard, Saskatoon’s deficit now sits at $20.1 million

Saskatoon’s projected deficit is now estimated at $20.1 million, thanks in part to the clearing and clean up efforts of a blizzard in early November that essentially paralyzed the city.

At the governance and priorities committee meeting Monday, Director of Finance, Kari Smith, told councillors that the number could – and likely would-still change.

“At this time this is still a projection, so the final deficit will not be known until the year is over and final revenues and costs have been accumulated.”

Smith presented a report, indicating that as the year progresses, projections are refined and updated.

“At its meeting on June 29, 2020, city council received an updated financial forecast report, which projected a deficit of approximately $13.9 million, and on September 14, 2020, the standing policy committee on finance received a report revising that projection to $14.6 million.”

The recent Saskatoon storm wiped out the city’s entire snow and ice budget of $14 million and has cost an additional $10 million. The money for that will partially come from $3.5 million in the snow and ice contingency reserve, and from other city stabilization reserves, according to Smith.

“There is obviously risk in using these, but that they are made for times like these where we have unprecedented snowfalls and unprecedented events,” she told councillors.

Earlier in the year, city council approved a $15 million contingency be held from the city’s 2021 paved roadways and preservation project budget. Money was then taken from the Municipal Economic Enhancement Program (MEEP)  to make up for that.

Along with that money, the city has received $19 million from the federal government’s “Safe Restart Agreement” to use in any way it chooses.

Smith says they’ll have more details in early 2021.

“The administration will report back on the final deficit results, the use of the reallocation funds, any stabilization reserves, or other plans for funding that may be required to balance the final 2020 deficit.”

The 2021 budget is now being finalized and will be considered by city council during its budget review and business plan discussions Dec. 2 and 3.