Once projected to be as high as $1-million in the early days of the pandemic, Owen Sound’s year-end deficit is now expected to be minimal thanks to Covid aid money flowing from the provincial and federal governments.
The city’s Director of Corporate Services Kate Allan shared an update on Owen Sound’s financial forecast for 2020 at Monday’s meeting. The bottom line: Owen Sound’s projected year-end deficit is now down to an estimated $30,000.
Earlier this month, the provincial government announced more than $9.3-million in relief for municipalities in Grey and Bruce counties to help cope with operating deficits and public transit system pressures brought on by Covid.
In all, $4-billion is being doled out to Ontario municipalities under the Safe Restart Agreement struck between provinces, territories and the federal government in July. It is cost-shared with both the provincial and federal governments contributing.
Owen Sound will receive $622,000 for its operating cost pressures and more than $172,000 to support the transit system.
“It sure helps take a little bit of concern off of all of us who were worried about how we are going meet budgets,” Owen Sound Mayor Ian Boddy says.
Allan’s report explains the city’s estimated 2020 operating deficit, excluding transit, is around $650,000. She notes the total deficit specific to Covid is actually about $980,000, but mitigation efforts taken by the city such as reduced service levels and layoffs lowered that by around $330,000.
The grant from the province will bring the city’s projected deficit down to $30,000.
As for Owen Sound’s transit system deficit, Allan’s report explains it is currently around $150,000 but could be impacted by changing ridership in the fall and early winter.
She notes any grant dollars received above the deficit must be placed into reserves to offset pressures that may continue to occur up until the end of March 2021.
The Ontario government’s municipal operating deficit support funding will also include a second phase of payments to eligible municipalities, after they’ve provided the province with information on their estimated Covid related financial pressures, according to a news release.