OTTAWA -- The City of Ottawa received an early Christmas present from the Ontario government - $34.2 million to help cover costs during the COVID-19 pandemic.
On Wednesday, the Ontario government allocated an additional $695 million to provide financial relief for municipalities and to help ensure they do not carry operating deficits in 2021. The province said the funding builds on the first phase of the federal-provincial Safe Restart Agreement announced over the summer.
Ottawa will receive $13.4 million to help offset the 2020 budget deficit, plus an extra $20,869,000 to provide financial relief as the city finalizes its 2021 operating budget.
In a statement to CTV News Ottawa, Mayor Jim Watson said the money will make Ottawa's finances "whole" for 2020 in relation to COVIVD-19 financial pressures.
"While staff review the full impact of these funding announcements, Mayor Watson wishes to express his sincere thanks to the Government of Ontario and the Government of Canada as they continue to assist municipalities across the province and the country deal with the financial impact of COVID-19," said a statement from the Mayor's Office.
In August, Ottawa received $49,348,500 to cover the municipal deficit and $79.9 million to offset a transit funding shortfall due to a decrease in ridership.
A report for the Finance and Economic Development Committee in October said the $49,348,000 to cover the municipal operating costs and pressures helped covered the budget deficit. The report notes the COVID costs and pressures for 2020 would exceed the phase one funding by $10.2 million.
Ontario also issued letters to municipalities on Wednesday about the next stages of transit funding under the Safe Restart Agreement. Details about the funding will be announced in January.
