OTTAWA

Ottawa receives $124 million to address COVID-19 budget pressures

Josh Pringle CTV News Ottawa Producer and Digital Lead

Published Wednesday, August 12, 2020 1:53PM EDT Last Updated Wednesday, August 12, 2020 4:32PM EDT

Text:

OTTAWA -- The City of Ottawa is receiving a $124.3 million financial lifeline from the Ontario and federal governments to address budget pressures during the COVID-19 pandemic.

Under the first round of emergency funding of the Safe Restart Agreement with the Ontario and federal governments, Ottawa will receive $49,348,500 for municipal funding and $74,980,842 million for transit.

The municipal funding is designed to help municipalities address operating pressures related to the COVID-19 pandemic. The transit funding will help support transit systems.

In a statement, Mayor Jim Watson said, "These two amounts, totaling $124 million, represent a very significant down payment on the City of Ottawa’s 2020 projected fiscal shortfall of $192 million, caused by the COVID-19 pandemic."

"The Province has laid out a process for accessing additional funding for the remainder of the City’s 2020 COVID-19 fiscal shortfall, and I look forward to continuing to work closely with the Province of Ontario, the Government of Canada, all Members of Council and the city’s senior leadership team to secure the funding required to make the City whole on its COVID-19 fiscal deficit."

In June, city staff estimated the City of Ottawa was facing a $192 million budget deficit this year due to the COVID-19 pandemic. Of the $192 million budget deficit, OC Transpo is facing a $120 million deficit due to reduced ridership since March.

Revenues are projected to be $241 million below budget this year, while the city has faced an additional $77 million in costs due to the pandemic. Council was told that $89 million in savings had been found to help cover some of the projected deficit.

City Treasurer Wendy Stephanson and City Manager Steve Kanellakos warned there could be layoffs and service cuts in 2021 without help from the upper levels of government.

Ontario announced the first round of emergency funding for all Ontario municipalities under the Safe Restart Agreement with the federal government on Monday, including $695 million to help municipalities address operating pressures and over $660 million to support transit systems.

Toronto is receiving a total of $549,771,332, including $404,088,232 for transit.

Funding for eastern Ontario municipalities

Here is a look at the Ontario and federal funding for eastern Ontario municipalities under the Safe Restart Agreement:

Town of Arnprior: $256,300

Brockville: $1,416,547 (including $102,647 for transit)

Carleton Place: $284,900

Casselman: $93,500

Clarence-Rockland: $607,400

Cornwall: $3,373,652 (including $687,352 for transit)

Deep River: $120,900

Gananoque: $308,100

Hawkesbury: $319,800