Durham gets $37.5m from Ontario, so not tax hike?

The nine municipalities of Durham, including the regional municipality, have been allocated $37.5 million out of an overall $1.6 billion being provided in the first round of funding by Ontario to its 444 municipalities.

This compares in the GTHA with:

  • $34.91 million for Brampton
  • $44.82 million for Hamilton
  • $46.08 million for Mississauga, and
  • $549.77 million for Toronto

The Ontario government, in partnership with the federal government, is providing up to $4 billion in urgently needed one-time assistance to Ontario’s 444 municipalities. Municipalities will be provided with up to $1.6 billion as part of the first round of emergency funding under the Safe Restart Agreement. This funding will help municipalities protect the health and well-being of the people of Ontario, while continuing to deliver critical public services, such as public transit and shelters, as the province continues down the path of renewal, growth and economic recovery, said a government statement.

Durham municipalities had threatened higher taxes and cuts in services if the funding was not forthcoming, citing loss of revenues due to the pandemic.

Through the Safe Restart Agreement with the federal government, $695 million will help municipalities address operating pressures related to the Covid-19 pandemic through the first round of emergency funding, and over $660 million will support transit systems. The province is also providing an additional $212 million through the Social Services Relief Fund to help vulnerable people find shelter, said the statement.

“Since the beginning of the pandemic, we have had the backs of our municipalities, which is why we are announcing up to $1.6 billion in critical funding today to help strengthen our communities and safely restart our economy,” said Premier Doug Ford yesterday. “This first round of funding will address the most urgent needs of our communities, ensuring critical services like transit and shelters are there when people need them most.”

“Municipalities are on the front lines of a safe restart to our economy. That’s why we’re working with Ontario, and all the provinces and territories, to ensure communities have the support they need to help Canadians through the next phase of this crisis,” said Prime Minister Justin Trudeau.

Fall 2020

In Fall 2020, Ontario’s 444 municipalities will receive $695 million in Phase 1 funding to help address municipal operating pressures related to the Covid-19 pandemic. This funding will be allocated on a per household basis and would be shared 50/50 between upper- and lower-tier municipalities. Up to $695 million in additional funding will be available through Phase 2 to eligible municipalities after municipalities have provided the province with information on their estimated Covid-19 related financial pressures.

In addition to the support for municipalities, the government is providing over $660 million in the first phase of transit funding to the 110 municipalities with transit systems. The funding can be used to provide immediate relief from transit pressures, such as lower ridership, as well as for new costs due to Covid-19, such as enhanced cleaning and masks for staff. In the second phase, additional allocations will be provided based on expenses incurred to ensure the funding meets the needs of municipalities. As part of the Safe Restart Agreement with the federal government, up to $2 billion is being provided to support public transit in Ontario.

Ontario is also providing municipal service managers and Indigenous housing partners with an additional $212 million under the Social Services Relief Fund to help protect vulnerable people from Covid-19. This investment can help them protect homeless shelter staff and residents, expand rent support programming and create longer-term housing solutions. This brings the government’s total Social Services Relief Fund investment provided to service managers and Indigenous program administrators to $510 million, and builds on the government’s Covid-19 Action Plan to Protect Vulnerable Ontarians.

Revenues decreased and costs increased

“As revenues decreased and costs increased due to Covid-19, municipalities are facing financial pressures like never before. This phased investment from the province is vital for Durham Region to continue to provide the important services our communities depend on, such as maintaining public health and shelters,” said John Henry, Regional Chair and CEO for the Regional Municipality of Durham.

Of the $22.9 million in funding, $8.4 million is specifically earmarked for Durham Region Transit (DRT). This funding will go a long way to resolving revenue losses and enable DRT to implement the Service Restoration Plan and overall ridership recovery efforts. It will also help to support ongoing sanitization and cleaning protocols that ensure the safety of our passengers and Transit staff, he said.

Mayor Don Mitchell of Whitby said: has issued the following statement: “This funding will help to offset the local cost impacts of Covid-19 on essential service delivery to our community. We look forward to our continued collaboration, as we work together through this pandemic and come out stronger.”

Will help restart economy

“We thank both the federal and provincial governments for their ongoing leadership and support during the Covid-19 pandemic. This funding will help us restart our economy and allow us to continue to safely provide vital services to our residents and support our local businesses at a time when it’s needed most,” said Clarington Mayor Adrian Foster. “It’s more important than ever that we work together and emerge stronger from this worldwide pandemic. Today’s announcement will help us continue down the path to economic recovery.”

He said the money received will be used to offset the costs of personal protective equipment, enhanced cleaning, physical alterations and other actions taken to improve physical distancing and reduce the risk of transmission of Covid-19. The funding will also offset the expected revenue loss from reduced program sizes and physical distancing measures implemented in our recreational programming.

“While the municipality has taken steps to reduce costs, as we reopen, there are additional expenses necessary to provide service while ensuring the health and safety of our residents. It will also help mitigate any future tax implications that might have been unavoidable without this funding,” said Clarington Director of Finance/Treasurer Trevor Pinn.

Unprecedented losses of revenues

‘We have faced unprecedented losses of revenues since the onset of this crisis in March. This has impacted all facets of our services, and both our short and long term capital priorities,” said Ajax Mayor Shaun Collier.

“This funding will assist in addressing these existing financial shortfalls and support our forward planning as we continue to make thoughtful decisions that balance the safety of our staff and residents with our responsibilities to the taxpayers of Ajax,” he added.

 

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