THUNDER BAY - Last month municipalities across the province learned they would be benefiting from more than $4 billion in federal and provincial funding to ease the pressures as a result of COVID-19. On Thursday the city announced it is receiving more than $9 million for general operations and transit operations.
“As a first step we are pleased with this,” said Thunder Bay Mayor Bill Mauro. “We are satisfied at this point. But as we get into this and do the work and dig a little deeper, we may feel we can demonstrate the need for additional funding. We will be looking at this closely we are thankful for this first step, but it doesn’t mean the work is over.”
The city will receive $9.4 million through the federal-provincial Safe Restart funding. The funding consists of $6,191,300, which is allocated on a per household basis to support COVID-19 operating costs and pressures. The remaining $3,184,760 will go toward supporting transit operations.
“This was our most significant pressure on the revenue side on the transit piece,” Mauro said. “That was representing $400,000 to $500,000 a month in terms of lost revenue for the city of Thunder Bay owing primarily to significantly reduced ridership numbers and offering free ridership to keep our operators safe.”
The funding is being rolled out in two phases, with the first phase accounting for pressures between April 2020 and September 2020. If the city can demonstrate after Sept. 30 that it continues to require assistance, additional funding could be made available up to March 31, 2021.
“There are opportunities for more assistance on the transit stream for us in the months ahead up to the end of March 2021,” Mauro said.
“There will be forms and submissions required by the finance department to the relevant ministries to justify any further demands or needs we may have. I’m not going to say its enough or not enough, we are thankful for what we received today and there will still be more work to do over the course of six to eight months.”
In the most recent report prepared by city administration to council, Thunder Bay was sitting at a $7 million shortfall due to the COVID-19 pandemic. But Mauro said it’s not simply a matter of the $9.4 million wiping any shortfalls away.
City council will receive an updated COVID-19 shortfall projection on Aug. 24 but there could still be additional costs down the road.
“There are additional costs we expect to see depending on decisions we make related to reopenings that we may make,” Mauro said. “As well, we have up until, on the transit side, to March 2021 to evaluate what those costs may be as well as an updated projection on the other half.”
As part of the funding, Mauro said the provincial government made it very clear that municipalities must demonstrate fiscal responsibility in order to qualify for any additional funding that might be needed.
These kinds of decisions could include staff vacancies, closing certain facilities, or reduced transit levels.
“Contained in these announcements I received was exactly that sentiment from the province,” Mauro said.
“If you want to justify the need for further funding in the days and months ahead, you are going to have to demonstrate to us what other decisions you have made in the past several months to show us you have been trying to be as fiscally responsible as you can be as you are asking for money to help you with your pressures.”
Mauro called the funding a point in time announcement and the city will need to reflect on where the money will be allocated and any additional shortfalls that remain.
“They have an expectation that the allocation we received today will be sufficient enough to ease the pressure, but he has certainly left the door open,” he said.
