EDMONTON -- Edmonton Mayor Don Iveson says it's likely the city will have to temporarily lay off more workers as it deals with the financial impacts of the COVID-19 pandemic.
City councillors met Wednesday to receive an update on how much Edmonton's finances have worsened in the past two weeks during the continuing health crisis.
On March 31, councillors looked at different financial scenarios with the pandemic ending in April, mid-June or mid-September. With that April best-case scenario out the window, the city is now projecting to lose $94.9 million by mid-June or $168.2 million by mid-September.
"We do hope that the provincial and federal stimulus, when it comes, will allow us to then ramp back up without slipping a beat," Iveson told reporters Wednesday.
These massive drops in revenue are largely caused by the losses of transit fares, recreational centre admissions and parking fees.
"We are working to reduce expenditures to offset these dramatically lower revenues," the mayor said.
As a result — and because the city remains uncertain on what kind of financial aid it will receive from the provincial and federal governments — Iveson says more layoffs are likely "to cover the growing financial gap."
Last month, the city temporarily laid off just over 2,000 non-essential employees effective at the start of this week.
"Council must still some very difficult decision to reduce expenditures as much as possible," Iveson said, and added it would be irresponsible for council to operate at a deficit.
Aside from more layoffs, Iveson said the city will look to delays some infrastructure projects to cover the pandemic's impacts on the 2020 budget.
"Because there is no appetite anywhere for large tax increases to address the shortfalls in revenues and our extraordinary cost, and because council does not wish to run deficits, it means we will have to make more hard decisions that affect our operations."
City council will have another budget discussion April 27.
