Federal gas tax money is a start, say municipalities
Region, which is estimating a net deficit of $7.5M related to virus, is hoping other measures are coming
The federal government’s announcement that it’s fast-tracking $2.2 billion in gas tax money to municipalities is a start, but more help is needed from upper levels, Niagara’s leaders say.
“We see this as a welcome first step, but certainly we’ll be looking forward to further announcements,” said Niagara Region Chair Jim Bradley. “From the provincial government we’ll be looking for funding announcements as well, both on the emergency basis and longer term.”
Prime Minister Justin Trudeau announced Monday the federal government is sending gastax fund money to municipalities in one lump payment. Normally the funds are doled out in July and November.
Bradley said it’s useful the money is being accelerated and municipalities don’t have to wait for instalments. But the Region, which is estimating a net deficit of $7.5 million related to COVID-19, is hoping to hear other measures are coming.
The Region wants the federal government to expand eligibility criteria to municipal employers to quality for the Canada Emergency Response Benefit wage subsidy.
It’s also asking the province to provide 100 per cent of public health costs on an emergency basis and wants to see enhanced funding for emergency medical services.
“We have incurred a lot of additional costs and have a loss of revenue, so there’s no question there is a genuine need,” Bradley said.
St. Catharines Mayor Walter Sendzik said the approximately $4 million in gas taxes coming to his city has already been allocated in the municipal budget.
He said the fast-tracking allows the city to move forward with 12 already approved capital projects, but doesn’t do anything to address the long-term financial challenges the city will be facing at the end of the year because of COVID-19.
“Hopefully, as the prime minister said, this is just the first step, which we appreciate, but there needs to be a lot more steps in order for us to ensure that the property taxpayers of our communities don’t carry the burden of this loss.”
St. Catharines is projecting a $2.9-million net loss by the end of June related to COVID-19.
Niagara Falls Mayor Jim Diodati said financial support from upper levels of government is essential to ensure municipalities stop “hemorrhaging” due to the ongoing pandemic.
“We’re in a situation where we’re not allowed to run a deficit — it’s against the Municipal Act — so we need some rules changed at the provincial level and we need the money now,” he said.
“You can’t give medicine to the patient once they’re dead. This is just about keeping the patient alive, in this case, keeping the municipalities running. It’s crucial that we get (the money) expeditiously and it has to go to the right areas immediately.”
Diodati said municipalities have taken measures to alleviate the burden on residents and businesses by, for example, temporarily not charging interest or penalties on overdue property tax bills and not charging transit fares.
But such decisions have impacted the amount of revenue municipalities are collecting.
“We have no cash coming in and yet we’re deemed essential, so we have to continue providing services with no revenue coming in. This is absolutely essential for our existence — a lifeline and it can’t happen fast enough.”
Welland Mayor Frank Campion said the injection of two years’ worth of federal government gas-tax fund money will see the Rose City receive just more than $3 million.
The city had been facing a projected shortfall of $4.4 million but with layoffs and cost-cutting measures put in place, it has a current deficit of
$384,514.
The mayor said the cash infusion will allow the city to accelerate and fund necessary infrastructure projects, which in turn would likely stimulate the local economy, create jobs and improve service.