Costs reported to City Council via C134/2020, were based on June 2020 data projected to the end of December 31, 2020 and also included several assumptions made based on information available at that time. The information in that report will be updated and a new report provided to City Council this fall regarding the City’s financial impact as a result of COVID-19.
Discussion:
The Ministry of Municipal Affairs and Housing communication letter, provided in the communications package for the August 24, 2020 City Council meeting, outlines the amount of allocated funding to the province’s municipalities. It also speaks to the high-level reporting requirements and process of requesting additional funding. The details of these requirements are pending release of the necessary documents from the Ministry. Described below is the 2-Phase approach the Ministry has taken in providing the municipal operating pressures funding stream. It should be noted that the requirements for the municipal transit pressures stream differs and is being reported to City Council in a separate report, C164/2020.
It should also be noted that the actual costs and/or lost revenues which may be able to be claimed under the Safe Restart program has not yet been provided and may vary from the types of COVID-19 costs and revenue losses Administration has been tracking and reporting to City Council. As we receive further clarity from the Province on the program requirements Administration will be able to provide more clarity on how much of the City’s reported financial losses are deemed eligible for funding under the Safe Restart program.
Phase 1: Immediate Funding for Municipal Operating Pressures
Under phase 1 the City of Windsor has been allocated $12,026,800 to support COVID-19 operating costs and pressures. Administration is requesting City Council to delegate authority to the City Treasurer to sign the required acknowledgement which will allow the Province to process the payment of $12,026,800 to the City in September of this year.
Administration is also requesting delegated authority for the submission and/or signing of any related agreements and/or reporting documents that will be required by the province. A separate reserve fund is also being requested to be set up to track the receipt and use of this funding for reporting purposes, as required and outlined in the communication letter from the Province.
Phase 2: Additional Funding for Municipal Operating Pressures
A second phase of funding will be offered to those municipalities that can demonstrate that the 2020 COVID-19 operating costs and pressures exceed Phase 1 funding support. As noted above the projected unmitigated deficit for the current fiscal year for the City is near $30M, inclusive of $4.8M for Transit Windsor costs. It is anticipated that the $12M provided to the City in September will not be sufficient to cover the City’s portion of this shortfall. As such, Administration is therefore seeking approval from City Council to pursue the additional funding under Phase 2, noting such approval by City Council is a formal requirement to pursue Phase 2 funding.