OTTAWA -- The closure of arenas, pools and other municipal facilities cost the City of Ottawa millions of dollars in lost revenue in the initial weeks of the COVID-19 pandemic.

A report for Wednesday’s Council meeting shows the City of Ottawa posted a $6.63 million deficit in the first quarter.  Staff say the deficit was “primarily due to lost revenues and increased costs from the COVID-19 measures."

The Recreation, Cultural and Facility Services Department posted the largest department deficit in the January to March period, at $4.7 million.

Staff say arena rentals, programming revenues and lost membership and registration fees resulted in a $3.9 million revenue deficit in the first quarter.

The City of Ottawa reported its first confirmed case of COVID-19 on March 11. On March 16, the city closed all facilities, including recreation facilities, pools and libraries, in a bid to limit the spread of COVID-19.

Community and Social Services posted a $2.3 million deficit due to increased costs in Housing Services’ emergency shelters. Emergency and Protective Services posted a $1.8 million deficit due to increased compensation costs for Ottawa Paramedics and lower parking fine revenues.

The report says the second quarter status report at the end of June will provide a better indication as to the overall year-end financial position for the City of Ottawa.

Budget update

Council will receive an update Wednesday on the City of Ottawa’s financial situation due to the COVID-19 pandemic.

On April 22, City Treasurer Wendy Stephanson outlined three scenarios for a budget deficit this year due to the COVID-19 measures and the shutdown of city services:

  • $18 million deficit if COVID-19 measures remain in place until the end of June
  • $35.8 million deficit if the measures are in place until September
  • $49.8 million deficit if the measures are in place until the end of the year

The budget deficits did not include the budgets for Ottawa Public Health, the Ottawa Police Service and the Ottawa Public Library.