MIDDLESEX COUNTY, ONT. -- The Federation of Canadian Municipalities (FCM) is seeking an emergency bailout of least $10 billion from the federal government, to assist its members weather the financial storm caused by the COVID-19 pandemic.
The City of London report revealed Wednesday that the municipality faces a $23-33 million shortfall because of the novel coronavirus.
FCM President Bill Karsten said in a media release, "Municipal leaders are working flat-out to support Canadians through this pandemic…But with new expenses, staggering drops in revenue and no freedom to run deficits, municipalities need emergency funding to keep essential services going strong."
The federation says Canadian municipalities face a minimum of $10-15 billion in non-recoverable losses due to the pandemic, including foregone property taxes, utility charges and user fees. It estimates a loss of $400 million each month, just from lost transit ridership.
And those losses are in addition to extra costs incurred to deal with COVID-19.
Karsten added, "From fire and ambulance to safe transit for essential workers, this is about delivering vital services when people need them the most…and be ready, when the time comes, to drive the economic recovery they’ll be counting on."
“The feds can play an incredibly important role,” explains Councillor Josh Morgan, London’s representative on FCM’s board of directors. “They have fiscal capacity and they have been taking decisive action.”
Morgan says in London, the emergency funding would help address the projected mulit-million dollar shortfall in the 2020 municipal budget, especially if the pandemic’s impacts extend into the summer.
The financial impacts include lost revenue at London transit, decreased revenue from water/wastewater bills and a shortfall in the police budget.
“This is not to fund nice-to -haves or extras. This is about funding essential services," says Morgan.
London North Centre MP Peter Fragiskatos sits on the federal finance committee which will be hear from Karsten on Friday.
“I know London is having a tough time right now, as are municipalities right across the country. We will hear the request and see how we can assist,” says Fragiskatos.
But Fragiskatos emphasizes financial help for municipalities must meet the needs of the moment, and also be sustainable. That will require working with the provinces as well.
“The municipalities have always been considered creatures of the provinces,” explains Fragiskatos. “But that does not mean that the federal government does not want to assist.”
London city council members will discuss the projected budget shortfall at a committee meeting next week.
Morgan adds, “There will be a role for both the federal and provincial governments to play. This is a partnership.”
