Recognizing the impact COVID-19 will have on municipal coffers, the City of North Bay is supporting the Federation of Canadian Municipalities (FCM) request to the Federal Government to provide funding to communities across the country.
The FCM is asking the government for a minimum of $10 billion in funding for emergency operational support.
Council unanimously agreed to support the request with a letter to the Prime Minister, and the Minister of Infrastructure and Communities.
Municipalities are bracing for the financial fallout from the pandemic.
The motion to support the request was brought forward by councillor Mike Anthony.
The motion states that “municipalities are not allowed to budget for a deficit, and will face challenges with reduced revenues, potential challenges with the tax base ability to pay, and the cost of local essential services citizens rely on.”
Anthony cited examples of other municipalities across the country that also see the merit in supporting the request.
“What they said from the beginning was if you give $10 billion to municipalities, divide it with a fair formula, there are larger and smaller centres, but everybody gets something, it will help them to be able to deal with the shortcomings that are coming,” explained Anthony.
“I believe it is a respectful request but if we can continue to make some noise, continue to join others, encourage our neighbours to join in as well, I would be hopeful that the government would hear.”
Councillor Mark King, who seconded the motion, says he is closing watching issues around public transit and retail business.
“There is a real net impact here. It is going to affect the tax base. No question in my mind that is going to take place,” said King.
“We understand what is going on in the business sector. We understand what residential issues are happening. When we start to look at upper levels of government, they’re not always that interested in listening to what we have to say, so we have to be vocal.”
Councillor Mac Bain said the request for support could translate into a considerable amount of money for the city.
“Those communities, because of COVID-19, with transit systems have seen, like us, a sharp decrease in the revenues that we have taken in. So North Bay would not only benefit because of per capita, we would also benefit if the government followed through with the request of FCM, an added benefit on top of per capita because of the transit system,” said Bain.
“We definitely have use for the funds. Municipalities are going to be looked at to help foster getting the economy started again through infrastructure spending. So, I am hoping that the government listens to everybody, FCM and AMO (Association of Municipalities of Ontario).”
Councillor Dave Mendicino says the municipality needs to be ready for future projects.
“I think it is important to note that the city of North Bay does have a strong balance sheet. I think to date both staff and council have done a great job of facing those challenges that hit us square in the face around the middle of March,” said Mendicino.
“Council is on its way to developing some shovel ready projects. I think we’re close. We need to be laser-focused on getting those projects shovel ready because if and when funding does flow for infrastructure funding starting from the fed’s we want to get people back to work.”
Deputy Mayor Tanya Vrebosch says any commitment made by the government to support municipalities needs to be long term.
“We don’t know where we’re going to end up with this. And so, I would hope that the federal and provincial governments are looking to support municipalities not just this year but for the next few years as we don’t know how things are going to have to change. And we’re going to need some time and support to be able to change how we do things,” said Vrebosch.
“We don’t know if hockey arenas are going to run the same way, if transit is going to run the same way. So, we may need to adjust to how we have to change those services.”
There is also a request for similar support from the Federation of Northern Ontario Municipalities, Association of Municipalities of Ontario, MP Anthony Rota, Members of the Opposition, MPP Vic Fedeli and neighbouring municipalities.
