Barrie’s mayor is contemplating tough choices ahead despite a federal cash infusion announced today by the federal government.
During his regular media briefing on Monday morning, Prime Minister Justin Trudeau announced the federal government would be rushing out $2.2 billion in infrastructure funding to Canada's cities to help with COVID-19-related impacts.
Normally, funding through the federal gas-tax fund is split between a summer payment and a second instalment later in the year, but this morning’s announcement indicated the Liberals plan to send all the money this month.
Barrie Mayor Jeff Lehman took to Twitter this afternoon to share his thoughts on the funding.
“While it's good news that the federal government has recognized the need for financial relief for Canada's towns and cities, today's announcement is not new money – and our revenue losses and additional costs are new, and real,” Lehman wrote on Monday afternoon.
“Without new funding, cities will have tough choices to make as we move forward. We are providing essential services such as police, fire, public transit, public health. We cannot allow these services to be compromised or reduced.”
While its good news that the Federal government has recognized the need for financial relief for Canada's towns and cities, today's announcement is not new money - and our revenue losses and additional costs are new, and real. (1/3)
— Jeff Lehman (@Mayor_Jeff) June 1, 2020
Trudeau said the fast-track spending was a first step as he holds talks with provinces, which have jurisdiction over municipalities.
"There is a range of services offered by cities that are at danger of disappearing," Trudeau said. "That's why we're doing what we can unilaterally and advancing the money forward, but we need to work with the provinces on this."
The gas-tax fund is one of the few mechanisms the federal government has to flow money directly to cities instead of having to move it through provinces.
However, the money can only be used for capital spending, not operational costs.
“I appreciate the Prime Minister saying this is only a first step,” wrote Lehman. “Mayors and councillors across the country will keep pushing for provincial and federal funds to address critical needs. We need both to support our communities.”
Municipalities have seen steep losses throughout the pandemic as fewer people pay for transit or parking, and recreation centres stay closed without paid programming.
Federation of Canadian Municipalities president Bill Karstens said the $2.2 billion may help some cities with immediate cash flow issues, but noted the money isn't new, has already been accounted for in municipal budgets and doesn't address the stark choices local leaders face.
"There are municipalities that have certainly indicated to us that, in terms of actual cash flow, they only have another month or so," he said. "The only true sustainable solution is for the federal government to show leadership, as I believe they want to, but they need the provinces to engage."
- with files from The Canadian Press
