Based on a review of active projects underway from prior years, projects totalling more than $90 million, including the new east side library branch ($9.4 million) and Waterloo Memorial Recreation Complex expansion ($24.8 million) will be continuing this year as planned, with $18 million worth of capital projects being deferred until 2021.

In its financial update to council, staff outlined millions of dollars in revenue reductions since COVID-19 hit and say it’s possible that the city will see a significant increase in outstanding property taxes and a lengthy process to recover them. As the next property tax payment is due to the city on May 1, it’s still unknown what the impact on primary revenues will be, the report says.

“People are worried,” said Coun. Diane Freeman, during city council’s virtual meeting on Monday. “They’re worried about how we will fund the ongoing operations of the city after things start to transition back to what we knew them to be in the past, and they’re worried that they just can’t take on any more financial burden so, I think this report starts to unpack things for people so they get a better sense of that.”

Savings as a result of facility closures and program cancellations have offset revenue losses.

Chief financial officer Keshwer Patel said the city is monitoring its financial position in various ways, including how far it’s deviating from balanced budget.

Patel said the city is currently showing a $200,000 to $300,000 monthly budget shortfall which is being offset by the rate stabilization reserve.

“We have topped it up with the surplus from 2019 which takes the balance of the reserve to $5.1 million, so it allows us to be able to mitigate the impact, hopefully for this year,” she said. “As we’ve been talking about recovering (the province) is hopeful we will be able to start reopening in the next few months and that will limit the revenue loss we are encountering. So with those types of presumptions, I would say we are good to make it through this year.”

The city has placed a freeze on the recruitment of new hires and vacancy replacements with exceptions for the replacement of “critical staff” and has reduced discretionary spending in all operating divisions.