The Ontario government is allocating an additional $695 million to provide financial relief for municipalities and help ensure they do not carry operating deficits into 2021. This investment builds upon the first phase of the federal-provincial Safe Restart Agreement announced this summer and will help municipal partners deliver critical services during COVID-19, the province said.
“This joint funding will help Ontario’s municipalities recover from the impacts of COVID-19 faster, by helping them to enter into 2021 without operating deficits from this year,” said Steve Clark, Minister of Municipal Affairs and Housing. “By ensuring our municipal partners are in a sound financial position to begin the new year, they can focus on keeping their capital projects on track while continuing to provide the critical services their residents rely on.”
Of the $695 million announced on Wednesday, $299 million is being allocated across all 444 municipalities to help provide more financial relief, as 2021 operating budgets are finalized. An additional $396 million is also being allocated to 48 municipalities that have been hardest hit by COVID-19 and have demonstrated a need for additional assistance in covering their 2020 operating deficits. This is in addition to funding being provided to municipalities to help with local transit pressures.
Ontario issued letters to municipalities on Wednesday about the next stages of transit funding for the Safe Restart Agreement. The province is notionally allocating $1.3 billion for municipal transit systems. This is in addition to the $700 million allocation under Phase 1 of the Safe Restart Agreement, which included needs-based top-ups. Further details about this funding will be available in January.
The City of Mississauga will receive an additional $20,968,000 and the Region of Peel will get $20,568,000 in Safe Restart Agreement funding, Deepak Anand, MPP for Mississauga-Malton said.
The provincial government believes that the additional funding will help municipalities to develop 2021 budgets that reflect the reality of COVID-19 in their communities and give them the confidence they need to proceed with capital projects that will help drive economic growth.
