With the City of Orillia looking at an estimated $5.5 million in costs and lost revenue this year due to the COVID-19 pandemic, recently announced funding is welcome news, says the mayor.
Under the Safe Restart Agreement between the provincial and federal governments, the city will receive $1,770,100 in municipal funding and $660,842 in transit funding.
“Any funding is welcome,” Mayor Steve Clarke said, noting Orillia Transit “is losing tens of thousands of dollars every month” because it’s been free to use during the pandemic and there have been stricter cleaning practices. “This will help offset those losses.”
The money will not be put toward the expansion of the transit system, which could include a new bus depot, Clarke said, noting the city expects to receive separate funding for that project.
Currently, bus riders can only enter through the rear doors, but that will change eventually, so the funding will help with the cost of installing plexiglass barriers to keep drivers safe. It will also go toward the purchase of personal protective equipment.
The municipal funding is also coming at a good time. The city has lost money that would have been generated by programming, venue rentals and other revenue. It has also taken a hit by deferring tax penalties and interest and by providing additional support to social services.
“Just like with transit, we have increased costs to keep people safe and we have decreased revenue. That’s what that money’s for,” Clarke said.
A news release from Simcoe North MPP Jill Dunlop noted this was the first phase of funding support for municipalities.
“In the second phase, additional allocations will be provided based on expenses incurred to ensure the funding meets the needs of municipalities,” the release stated.
Clarke said the city had to provide the province with details about how it would use the money from Phase 1. The city is awaiting details about Phase 2 before deciding whether to make a request for more funding.
“My suspicion is we’d apply for Phase 2, but we’ll have to see what that template looks like,” he said.
While the Phase 1 funding covers only a portion of what Orillia is looking at in losses, the city is “quite grateful for this assistance,” the mayor said, adding he has been impressed by the “spirit of co-operation” among all levels of government during the pandemic.
