If the amount of funding allocated in Phase 1 is less than the Recipient’s COVID-19 municipal transit pressures, the Recipient’s report back will support the need for additional funding in advance of Phase 2 reporting. The additional funding is expected to be provided by December 31, 2020. The ministry will provide the Recipient with additional details on the reporting in the coming weeks; responses to information gathering questions are required.

The Recipient will be required to return any unused funds to the province where the funding from Phase 1 is in excess of the eligible expenditures incurred under both Phase 1 and Phase 2.

In the meantime, I am requesting that the municipal treasurer for the Recipient sign the acknowledgement below and return the signed copy to the ministry by email by September 11, 2020 to MTO-COVID_Transit_Funding@ontario.ca .

Please note that the ministry must receive this acknowledgement before making a payment to the Recipient. The province intends to make the Phase 1 payment to the Recipient in September 2020.

Phase 2: Ongoing Support

To be considered for Phase 2 funding, municipalities will be required to submit the reports noted above. Phase 2 funding will consider the reported actual impacts to determine the funding allocations and will be governed by a transfer payment agreement (TPA). The ministry will consult with municipalities on the TPA in Fall 2020.

MTO intends to build specific requirements into the Phase 2 agreements to achieve important transit objectives to promote ridership growth and transit sustainability. These include, for example:

• Ensuring and promoting the safety of public transit systems through the coordinated procurement of new safety materials;

• Requiring that the transit systems drive service sustainability through innovation in route planning and technology, as well as reviewing municipal transit jurisdictions where there are upper- and lower-tier systems operating in the same areas; and

• Requiring that the GTHA municipalities work with the province to make real progress on fare and service integration to provide rider benefits.

In order to achieve these objectives, municipalities will be required to demonstrate their participation and progress in different areas.