Good afternoon, Mr. Chair and members of the committee.
Thank you for the invitation to join you today. The City of Winnipeg appreciates the opportunity to appear before the House of Commons Standing Committee on Finance this afternoon.
I'd like to provide you with a brief overview of our current situation in public transit as well as our broader transportation and utility systems.
In recent years the City of Winnipeg has been working on a number of initiatives to make public transit more effective and affordable. This trend has continued in 2020, with Winnipeg's commissioning of stage 2 of the southwest rapid transitway, which was achieved well under budget and ahead of schedule. Work is also proceeding on the development of Winnipeg's transit master plan.
However, the COVID-19 pandemic has changed the landscape for municipal services, confronting all city programs and services with major challenges. Our city as a whole is anticipating a cumulative shortfall of $73 million in 2020, provided the impacts of the event have subsided by the end of August. Impacts of COVID-19 beyond the end of August could be expected to have even more severe financial implications.
Winnipeg has implemented a COVID-19 management plan to help mitigate the effects that the crisis is having on the City of Winnipeg. This plan includes public transit service reductions and staff layoffs. Still, even with these measures, there will be a drawdown on the city's financial stabilization reserve fund.
The delivery of public transit has proven to be a substantive part of Winnipeg's operational challenges. Ridership has fallen by approximately 72% since the same period last year. As of April 30, Winnipeg Transit's lost revenue has amounted to $7.1 million, and this amount could rise to $28 million by the end of 2020. As a result, Winnipeg Transit has reduced service by introducing an enhanced Saturday schedule on weekdays and has made the extremely difficult decision to lay off 246 bus operators on a temporary basis.
These layoffs are in addition to the 674 staff who were laid off as part of Winnipeg's COVID-related closure of recreation centres, pools, arenas and libraries, for a total of 920 COVID-19-related layoffs to date.
In addition to regular transit operations, the COVID-19 crisis has greatly complicated the opening of stage 2 of the southwest rapid transitway and the launch of other transit programs, such as Winnipeg's low-income bus pass. Furthermore, the impact on customers could extend well into the COVID-19 crisis, and even beyond. How long it will take to rebuild transit ridership is a crucial but open question.
The impact of the crisis on our employees is also a concern for the City of Winnipeg. Following the temporary layoffs, some employees' confidence will undoubtedly be shaken. Some may take early retirement and some may seek employment elsewhere. As such, Winnipeg Transit faces not only the challenges associated with lowered workplace morale and increased workplace stress but also the real, tangible costs associated with workplace turnover and the need for additional overtime, recruitment and training that result from turnover. Underlying and further aggravating all these issues is the unprecedented uncertainty the city is facing going forward.
In response to this challenge, the City of Winnipeg has quickly and effectively adapted the manner in which it provides transportation and utility services.
Some examples of this include the Winnipeg Fleet Management Agency's new protocols to protect staff, including the rental of additional vehicles to ensure safe physical distancing.
The Winnipeg Parking Authority has relaxed parking enforcement in recognition of altered patterns of activity and physical distancing needs—not, however, without further negative financial implications.
To protect staff and the public, Winnipeg's Water and Waste Department has suspended many regular in-home services and has also suspended water turnoffs for nonpayment of bills and late fees.
To ensure proper physical distancing, Winnipeg's public works department has developed new flood control operational protocols for activities such as filling sandbags and building dikes.
Traffic signal timings have been adjusted to accommodate the changing volumes of traffic on city streets, and solid waste and recycling crews have been stretched as the volume of residential garbage and recycling has increased significantly.
In response to the changing operational landscape resulting from the COVID-19 pandemic, Winnipeg Transit, as a front-line service provider, has also implemented comprehensive cleaning and safety protocols.
Winnipeg's transportation and utility staff, and staff across all City of Winnipeg departments, have made exceptional efforts to meet the goals of the Winnipeg pandemic recovery framework.
I would like to take this opportunity to thank the City of Winnipeg staff for their commitment and adaptability, and also the residents of Winnipeg, who are working with us to slow the spread of COVID-19. In an uncertain time, we appreciate the certainty of their goodwill.
Thank you again for the invitation. I would be happy to take any questions you might have.