Cash-needy cities plead for $10B to run services

• Cash strapped cities and towns across the country are asking the federal government for at least $10 billion to keep their services running through COVID-19.

Municipalities across the country have seen steep drops in revenue as they close libraries, recreation centres and run transit systems with few fare- paying passengers on board.

The Federation of Canadian Municipalities asked for the help on Thursday. The organization’s president, Halifax City Coun. Bill Karsten, said they desperately need support.

“From turning arenas into safe shelters to deferring property taxes, municipal leaders are working flatout to support Canadians through this pandemic,” he said in a statement. “But with new expenses, staggering drops in revenue and no freedom to run deficits, municipalities need emergency funding to keep essential services going strong.”

Municipalities in Can

this is about delivering vital services.

ada are allowed to borrow for big projects, but they are not allowed to borrow for their day-to-day expenses, as provinces and federal governments are doing to get through the COVID-19 crisis.

Karsten said they believe municipalities will be out $10 to $15 billion by the end of the crisis and have asked the federal government to provide $ 10 billion in relief. The funding would include $ 7.6 billion distributed on a per- capita basis, with an additional $ 2.4 billion for municipalities that have transit systems.

On Thursday, the Toronto Transit Commission announced it was eliminating 1,200 positions on a temporary basis because of the drop in revenue.

Karsten said municipalities need the help to keep providing essential services.

“From fire and ambulance to safe transit for essential workers, this is about delivering vital services when people need them the most. We’re all in this together,” he said.

Prime Minister Justin Trudeau was noncommittal when asked about the issue on Thursday morning. He said both cities and some provinces were facing a big hit to their finances.

“We have had a number of conversations with the provinces on their financial challenges,” he said.

Municipalities are under the control of provinces, who govern their finances and make most of the oversight decisions about how they are run.

Trudeau acknowledged the services had to be there.

“We all serve the same people, Canadians, and we need to be there to work together for them,” he said.