P.E.I. municipalities cope with cost of pandemic
The Prince Edward Island Federation of Labour has issued a letter to all 63 municipalities on P.E.I. appealing them to ask the federal government for financial help.
Municipalities, which provide essential services like policing and fire services, may be experiencing cash flow problems due to residents' inability to keep up with property taxes and suspension of other fees.
“We think the municipal governments are probably lacking money now because of the COVID. They don’t have the same income and they employ staff. They have a lot of work to do. They’re an important part of the whole government infrastructure,” said Carl Pursey, the P.E.I. president of the Federation of Labour.
Charlottetown is experiencing significant revenue loss during the COVID-19 pandemic, said Mayor Philip Brown.
“It has been hitting the municipality quite hard, but I know businesses in the City of Charlottetown are facing the same gloomy horizon that we’ll all have to face during this pandemic and post-pandemic,” said Brown.
The city’s budget is fuelled mostly by property taxes and a provincial grant, but close to 10 per cent of the city’s revenue, around $10 million, comes from other streams like parking meters and tickets, parkade fees, recreation program fees and revenue from agreements with the Eastlink and Bell Aliant Centres.
Lost parking revenue for April and May alone added up to around $750,000, said Brown.
Not every council is looking for extra help, though.
Summerside’s chief administrative officer Rob Philpott said his city is monitoring the ongoing impacts of the pandemic on city operations.
“At this time, we are confident that we will be able to mitigate these impacts without any effect on our programs and services,” said Philpott.
In Kensington, extra workers were hired to clean and sanitize public washrooms and structures like playgrounds and picnic tables. The wages were paid for with federal funding, but councillors don't expect to request more help.
The Federation of Canadian Municipalities (FCM), which represents councils' interests at the federal level, has convinced Ottawa to distribute the Gas Transfer Fund (GTF) in one lump sum, rather than two payments.
Brown said this will help his city meet its financial obligations without needing to approach the bank for loans in the interim.
The FCM has also asked that the GTF pot increase from $2.2 billion to $10 billion.
"To assist municipalities with infrastructure upgrades,” said Brown. “By assisting with infrastructure upgrades, that creates work which puts money into the economy.”
Meanwhile, Charlottetown has focused on supporting the businesses in the city.
“We’re trying to reach out with the tools to help our businesses by relieving some of the pressure. In business, cash flow is very important.”