By the numbers: COVID-19 financial scenarios (so far), PPE supply chain (so far)

There are lots of COVID-19 financial impact numbers flowing out of City Hall this week. 

Here’s an overview of some of the key projections. 

168.2: loss of City of Edmonton revenue in millions of dollars in scenario where shutdown of facilities and services goes until mid-September

192.8: what that loss grows to in millions of dollars if City relaunches to 75 per cent of typical operations by December

216.7: what that loss grows to in millions of dollars if City relaunches to 50 per cent of typical operations by December

260: and what that loss grows to in millions of dollars if City response to pandemic continues as it currently is in terms of shutdown of facilities and services through December

56.7: loss of Transit revenue in millions of dollars if pandemic revenue shutdown continues to mid-September

14.2: costs in millions of dollars for COVID-specific operations in a mid-September, return-to-typical scenario

31.9: cost savings identified so far in millions of dollars (including fuel, utilities, contracts, consulting, training, etc.) in mid-September scenario

The figures came from a presentation by Mary Persson, the City’s Chief Financial Officer, to a physically distanced meeting of Edmonton City Council on Wednesday, April 15.

Persson said the City’s plan is not to use a tax increase to work through the projected revenue shortfall. 

(L-R) Laughlin and Persson in front, and Kits in back, City Hall, Edmonton, April 15, 2020.

Spending reductions

At a news conference on Wednesday, Interim City Manager Adam Laughlin called the impacts “serious.”

“Today we talked about a number of financial tools to balance the budget, and we will return to Council on April 27 for a more detailed discussion about specific options,” said Laughlin. “There are difficult decisions ahead, and those decisions include spending reductions.”

PPE at City warehouse

Supplies, cooperation

Meanwhile, City Council also heard numbers about the City’s supply chain during the pandemic, including these numbers from Roxanne Kits, Branch Manager, Corporate Procurement and Supply Services: 

0: number of the City’s top 20 suppliers that are reporting significant supply delay issues

100: per cent of critical Personal Protective Equipment (PPE) acquired from local suppliers*

2: value of worth of PPE acquired for City departments in millions of dollars

1: grateful City whose leaders appreciate its suppliers and the efforts they make to keep City employees, and the people they serve, safe

“We are competing but we are working together with a number of organizations, including other cities and Alberta Health Services, to talk about where we are finding supplies so we can find out where we can go to find what we’re looking for,” said Kits. 

“The local supplier community has been awesome in helping us try to figure out the channels we  can go through…for PPE and supplies.”

Editor’s note: The photo at the top of the post shows the temporarily closed Terwillegar Recreation Centre. The City’s community and recreation centres are projected to record a $37.6 revenue loss (admission fees, rentals, programs) if the shutdown continues to mid-September. 

*Editor’s other note: Kits said the City is purchasing PPE locally, but the goods are manufactured globally.