COVID-19 Intergovernmental Funding Update

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The decision

2021-12-15 · Toronto City Council · adopted

As filed

City Council on December 15, 16 and 17, 2021, adopted the following: 1. City Council request the Government of Canada and the Ontario Government to provide funding commitments to address the City's COVID-19 related financial impacts in 2022 and 2023. 2. City Council request the Government of Canada and the Ontario Government to allocate COVID-19 related support to municipal governments on a needs basis, including recently announced provincial operating funding for public transit systems.

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3. City Council request the Ontario Government to confirm that $28 million in provincial emergency funding that has been previously committed to the City for public transit as part of Phase 2 funding can be rolled over past the end of the provincial fiscal year (March 31, 2021).

On the agenda

As the city filed it

Partnerships between governments have been critical in our country's response to COVID-19, including efforts to contain the pandemic, roll-out vaccines and safely re-open the economy. Investments from the federal and provincial governments, including through the Safe Restart Agreement, have been fundamental to this effort by supporting the preservation of the City's essential services and allowing job-creating capital investments to proceed.

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However, Toronto and other large cities continue to face a precarious multi-year recovery. Federal and provincial partnerships will be required to mitigate pressures related to COVID-19 in 2022 and beyond, including those caused by transit ridership losses and additional expenditures in areas such as the shelter system. According to preliminary estimates, $1.0 billion to $1.4 billion in further funding commitments are required to address 2022 COVID-19 related impacts alone. Commitments are required in the short term to address this situation so that City staff can present a balanced budget for 2022, and avoid a reduction in service offerings (including pandemic response) and capital offsets/deferrals, which would both delay and hinder the City's recovery. As the economic driver of the province and country, Toronto's rapid recovery from the economic shock of COVID-19 is critical.

Staff recommended

The City Manager and the Chief Financial Officer and Treasurer recommend that: 1. City Council request that the Government of Canada and the Ontario Government provide funding commitments to address the City's COVID-19 related financial impacts in 2022 and 2023. 2. City Council request that the Government of Canada and the Ontario Government allocate COVID-19 related support to municipal governments on a needs basis, including recently announced provincial operating funding for public transit systems.

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3. City Council request that the Ontario Government confirm that $28 million in provincial emergency funding that has been previously committed to the City for public transit as part of Phase 2 funding can be rolled over past the end of the provincial fiscal year (March 31, 2021).

On the record

The item as the City filed it

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