Covid-19 to cost Durham up to $20m by May-end

The Regional Municipality of Durham estimates that the Covid-19 impact, by the end of May, will be about $15 to $20 million.

The projection is based on increased costs, coupled with revenue reductions, it said in a media statement.

Meanwhile, the City of Oshawa staff provided an update on the response to the Covid-19 pandemic, including steps taken to ensure business continuity, keep critical functions and services operating, and contain expenditures, as well as measures to support residents and local businesses.

The update was presented during the April 27 regular council meeting, said a city media release.

Business Continuity

The city has put in place a number of measures to ensure business continuity and a safe working environment for its essential workers.

Facility maintenance and repair activities are necessary, ongoing and essential. City staff continue to provide essential services to ensure that the City’s building structures, systems and infrastructure remain in proper operating condition, including providing routine and scheduled maintenance.

City workers continue to provide essential services, including Fire Services, Waste Collection, Parks Operations, Municipal Law Enforcement and Licensing Services, Road Operations, Animal Services, Building Permits and Inspections, and Capital Projects and Infrastructure Maintenance. View the Public Notice to learn more.

Fiscal Management

Strong fiscal management and financial stewardship continue to guide the city’s decisions during the Covid-19 pandemic, the statement said.

Municipalities are required by legislation to achieve a balanced budget. City staff continue to review the city’s financial position with respect to the impact that the pandemic is having on revenues and expenses. Staff is tracking all costs and revenue losses as a result of the Covid-19 pandemic, undertaking a detailed review of the 2020 Budget and identifying areas of savings to mitigate the financial impact to the City.

As a result, measures to date have included:

  • A temporary freeze on filling vacant positions (with the exception of four new firefighter positions approved by Council in 2019 and four vacant firefighter positions created by retirements and a new Fire Services Communications Officer)
  • Cost containment actions, including closely scrutinizing all operating and capital accounts and avoiding all non-essential expenditures such as purchases of furniture, fixtures and equipment and training, seminars and conferences (unless already committed to or required by legislation or otherwise to perform job duties)
  • Temporary layoffs of certain city employees based on provincial orders to close schools and certain facilities to the public or due to significantly reduced workload

Additionally, the city said it is actively monitoring announcements regarding financial support from the provincial and federal governments and advocating funding to offset additional costs and lost revenues as a result of the Covid-19 pandemic.

Relief to Residents and Businesses

To support community members and local businesses during this difficult time, Oshawa has offered the following tax relief measures and supports:

  • Waiving tax payment penalties and interest for 60 days for all residents and businesses, effective with the April 27, 2020 tax installment. The two-month grace period, until June 30, is for the April 27, 2020 installment with no penalties or interest charged.
  • Business, taxi and animal licences due to expire at the end of March, April and May have been extended to June 30 to allow individuals and businesses more time to submit and process these applications.
  • Providing free parking at all metered on-street locations and certain municipal parking lots in downtown Oshawa until further notice.

“During these unprecedented times, we must balance the needs of the community with our current economic state while also ensuring the long-term financial sustainability of the corporation. We’ve had to make some hard decisions and we are working to support our community with compassion during this very difficult time,” said Oshawa Mayor Dan Carter.

Durham forms task force for recovery

The Regional Municipality of Durham said it has taken several steps to help lessen the impact of Covid-19 pandemic on residents and local businesses.

In a media statement, the Region said it has:

  • Suspended water and sewer late bill payment charges, collection notifications and shut-offs for non-payment
  • Provided free emergency child care for front-line and essential workers
  • Expanded access to emergency assistance under Ontario Works
  • Provided emergency support for unsheltered residents
  • Advanced payment to local housing providers
  • Adjusted tax levy payments, from local municipalities, to support an interest-free grace period; and is
  • Considering options for development charges
  • Temporarily suspended transit fare collection

To support businesses, Durham Region formed the Durham Economic Task Force. This team identified and addressed business-related concerns; co-ordinated interest-free loans for Chambers of Commerce and Boards of Trade; and found innovative ways to support business owners.

Financial costs and recovery

At yesterday’s Regional Council meeting, the region presented financial projections that estimate the Covid-19 impact, by the end of May, to be about $15 to $20 million. The projection is based on increased costs, coupled with revenue reductions.

To move forward, recovery work will be guided by a small, dedicated task force chaired by the Durham Region CAO, Elaine Baxter-Trahair, and include representation from regional senior leadership, as well as emergency services, healthcare, economic and social sectors. The task force will liaise regularly with area municipal councils, and the region’s federal and provincial representatives.

The plan will consider health and social services; infrastructure and the built environment (such as buildings, roads, transit networks, and more); economic recovery; and the restoration and enhancement of regional services—all within the context of significant fiscal impacts. Actions will include the acceleration and enhancement of priorities identified through the recently approved Regional Strategic Plan.

A follow-up report is scheduled to be presented to council in May. It is critical to plan in times of uncertainty. This Regional Recovery Framework will focus on long-term strength and resilience.

Public Calls

The communications lines have never been so important to residents and business as they are now. There were 70,000 calls to the region in March and April. In addition, the public-health call centre received over 40,500 calls—a number 10 times higher than their normal call volume.

More than 4,200 regional employees have been working around the clock to ensure critical services continue. There are more than 1,677 staff members working from home. Not to mention the nearly 500 people who were re-deployed to provide support where it was needed.

Regional employees have been working to bring critical services to residents and working on the front lines in the following ways:

  • Taking on various roles in the region’s four directly operated long-term care homes.
  • Operating 24/7 emergency child care centres; offering 167 spaces to children whose parents offer essential services, front-line care, emergency response, health and safety, or support to our vulnerable communities.
  • Dealing with outbreaks in long-term care and retirement homes across the region.
  • Conducting 585 health investigations in facilities, such as shelters and group homes.
  • Attending 17,151 calls for paramedic services (as of April 25), with 10,176 patients transported to hospital.

To support vulnerable populations, the region has:

  • Co-ordinated with community agencies and local municipalities to ensure washroom facilities, meals and mental health supports.
  • Co-ordinated the opening of additional shelter beds at Camp Samac in Oshawa.
  • Offered a new Covid-19 Community Assistance Fund to support homelessness.
  • Offered confidential telephone counselling and mental health support, plus virtual outreach for isolated residents.

“We understand this is an unpredictable time for many community members, which is why we are doing everything we can to support you. We’ve listened to those who have shared their concerns. We’ve reached out to those who need it most. And we continue to keep our residents and business owners top of mind when making Regional decisions,” said John Henry, Regional Chair and Chief Executive Officer.

“As recovery efforts unfold, I invite all community members to remember that we are in this together. By supporting one another and working together, we will ensure that Durham Region remains one of the most vibrant, innovative and diverse communities within the Province of Ontario,” he added.

Quick Facts

  • Transit ridership decreased by 73 per cent
  • Ontario Works applications increased by seven per cent
  • Calls to Durham Regional Police Service increased by 14 per cent

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