Ontario mayors call for virus relief money

Seek funding to prevent tax increases, service cuts in areas such as transit, health, fire and police

TORONTO — People in Ontario could face property tax increases and service cuts if upper levels of government don’t provide immediate financial support to municipalities coping with massive pandemic-related costs, leaders of the province’s largest cities and regions said Monday.

The municipal leaders said $10 billion in aid is needed for communities across the country, including Ontario, and federal and provincial governments must resolve their differences before the cuts and fee hikes are forced upon communities.

The Large Urban Mayors’ Caucus of Ontario, the Association of Municipalities of Ontario and the Mayors and Regional Chairs of Ontario penned a joint statement to ratchet up pressure on the governments to come to a resolution.

“Our residents need support now,” the groups said in a statement. “The time is up for federal-provincial wrangling about how to share the costs.”

The groups’ request comes halfway through the municipal budget year. They’re urging the federal government to address the issue in a fiscal update set for Wednesday.

The COVID-19 pandemic has resulted in hundreds of millions of dollars in additional costs and lost income for towns and cities, including steeply declining transit revenues.

Guelph Mayor Cam Guthrie, chair of the Large Urban Mayors’ Caucus, said municipalities do not want to raise property taxes or cut services but if they don’t receive urgent help they’ll have little choice.

Some councils are considering cancelling transit services, reducing public health, fire and police services, and closing parks and cultural sites to cut costs, he said.

Not allowed to run deficits by law, municipalities across Ontario have already been laying off thousands of staff. Meanwhile, Premier Doug Ford said the final two communities remaining in the first stage of Ontario’s reopening plan will move ahead today. Ford says Kingsville and Leamington will move to Stage 2 as of 12:01 a.m. because COVID-19 outbreaks on local farms are under control and community spread of the virus is low.

Ontario reported 154 new cases of COVID-19 on Monday, and 160 newly resolved cases.