City council receives grim picture of Calgary’s finances during pandemic

CALGARY (660 NEWS) – A special meeting of Calgary city council is grappling with how to make up for the massive financial shortfall caused by the COVID-19 pandemic.

It’s estimated the city losing up to $15 million a week because of the shut down of recreational facilities and a decrease in transit services.

City manager David Duckworth says the city was struggling before the pandemic and cutting services won’t make up for the widening shortfall.

“The majority of our services have been steady because demand is steady. In fact, (for) many of them, the demand has gone up. Calgarians are relying on our services every single day so we just can’t cut our way out of this.”

From March 12 to April 19, the city lost over $21 million in revenue and an additional $10 million as a result of layoffs and overtime pay.

Duckworth projects Calgary’s revenue shortfall could hit almost $300 million in the long term.

Some strategies have been presented to council to help narrow the gap, including using reserve funds, dealing with unfilled vacancies and service reductions.

Council will be asked to make some decisions on municipal relief options, with a written report due on May 11.

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