WINNIPEG -- The COVID-19 pandemic is cutting into the City of Winnipeg’s bottom-line, but projections aren’t as dire as previously predicted.

The city's Financial Status and Forecast reports, released Wednesday, said the shortfall for all departments as of June 20, 2020, was expected to reach $29.9 million, well below the $53.8 previously predicted.

While the projected deficit is $700 thousand, instead of the $25.8 million projected in the previous quarterly report.

“The $700 thousand isn’t bad as initially predicted, but that’s because council enacted significant measures,” City of Winnipeg finance chair Scott Gillingham told CTV Wednesday.

Some of those measures, also known as levers, include a hiring freeze, reduction of services, and temporary layoffs.

“The lever we’ve pulled as a result of that plan have made a significant positive impact on our city’s bottom line,” said Mayor Brian Bowman Wednesday.

According to the report, without taking strategic measures during the pandemic, the projected shortfall for all city departments would have been $67.5 million.

WINNIPEG TRANSIT REVENUE DOWN

With more people working and studying from home, Winnipeg Transit has seen one of the largest drops in revenue.

Winnipeg Transit is reporting a projected year-end shortfall of $29.1 million, $3 million more than the previous prediction of $26.1 million.

“The drop in revenue and drop in ridership is a real concern and we don’t know when it will get to pre-COVID level,” said Gillingham.

IMMIGRATION LEVELS SLIDING

A decline in expected population growth is also predicted, as the report is showing a decline in immigration. The city is now estimating the population of Winnipeg by the end of the year will be 771,400, a drop of 3,300 compared to the previous forecast.

“Overall business is down,” said Tobey Xiang, immigration consultant.

“Before the pandemic, we got four or five clients each month. Right now it’s like one or two.”

Fewer newcomers to Winnipeg means less revenue for the city.

Before the pandemic, the city expected the population to reach one million by 2035.

The reports will be discussed at the standing policy committee on finance on September 15.