The city is moving to help assist front-line community service agencies, local residents and the business community as Orillia and the world grapple with the financial fallout of COVID-19, the global pandemic.
At an emergency city council meeting Friday afternoon, councillors unainmously agreed to waive penalties for those who don’t pay their property taxes, water or wastewater bills until June 30.
That means if you don’t pay those bills, there is no consequence — at least until July 1.
In addition, the city will be providing free Orillia Transit and will not be enforcing parking fines, meaning parking in city lots and at metred spots is free — at least until April 30.
The city also approved the creation of a $100,000 fund to provide emergency financial aid to front-line, local agencies stretched past their limits due to the pandemic.
Treasurer Jim Lang gave council a “high-level” look at how the city would pay for the measures.
He said there are not only the costs of financing the initiatives but there is also the lost revenue to consider and the impact to the city’s cash flow if many property owners opt not to pay their taxes.
Lang said the tax rate stabilization reserve would be used to cover the bulk of the costs.
“I can confirm … that we have a healthy tax rate stabilization reserve to allow for this and furthermore (for the) short-term unbudgeted lost revenue,” said Lang.
He said there are long-term concerns if the pandemic drags on for many months.
“The city’s cash flow, currently, is in a good position and will absorb (the loss of) taxes for a length of time” that is difficult to predict.
Lang noted the city has $19 million in an “operating bank account” and there are also “additional investments earmarked for outstanding capital projects. Additional options available” include the city’s $10-million line of credit.
“Without a doubt, the city will be able to finance the” measures approved and to cover lost revenues, Lang said.
Coun. Ted Emond referenced an OrilliaMatters survey that determined a relatively small number of people are feeling the financial impact right now.
“My personal view, in the context of the city supporting our citizens, is we need to support those citizens in need,” said Emond.
He urged people who could to continue paying their taxes and water bills, noting if they don’t they will have to catch up at some point, which could prove daunting.
Emond also had questions about which agencies might be able to take advantage of the newly created $100,000 emergency fund.
Lang said senior city staff did debate that issue and how to structure the dispersal of funds.
“The three words I’m using are ‘critical.’ ‘lead’ and ‘community,’” said Lang, noting that would preclude provincial and national organizations.
The money is meant for those “who work directly in the community,” he said, referencing agencies such as The Lighthouse, The Sharing Place Food Centre, St. Vincent de Paul and Green Haven Shelter for Women as examples.
According to the report presented to council, a panel would be formed “to ensure quick response time” to requests for grants.
Coun. Ralph Cipolla suggested the city find a way to only charge non-peak prices for electrictiy, but staff noted those rates are set by the province.
It was noted that Orillia Power has announced it will waive penalties against those unable to pay until July 31 and will not conduct any shutoffs during this period.
The move to free transit is a measure to help citizens but also to encourage less personal interaction.
“Payment handling requires several points of physical contact including closer personal interaction, potential physical contact with the coin box, manual coin sorting” and others.
“The temporary waiving of transit fares would reduce physical interaction with the public in an effort to reduce the opportunity for community transmission of the COVID-19 virus,” noted the report.
Treasury staff provided council with some estimates of what the various measures would cost, noting it was difficult to factor in lost revenue and other factors.
Based on 2019 trends, staff estimate, for the period of March 15 through to June 30, the city will lose approximately $215,000 in penalties for late payment of taxes.
Waiving of the water and sewer penalty, based on 2019 trends, for the same period, will be approximately $40,000. Any lost revenue from this will not impact taxpayers but will affect the amount of funds contributed to the reserve at the end of the year intended to fund capital projects.
The average passenger and pass revenue in the April-to-June period for Orillia Transit is approximately $70,000 per month. As ridership is currently down significantly, the city will already experience a shortfall in revenue regardless of any decision to waive fees.
When it comes to parking, the 2019 average passenger and pass revenue in the April-to-June period is approximately $57,000 per month. As usage is currently down significantly, the city will already experience a shortfall in revenue regardless of any decision to waive fees.
Friday’s two-hour emergency meeting was closed to the public as part of a strategy to abide by social distancing guidelines.
Councillors Jay Fallis, Rob Kloostra, Tim Lauer and Pat Hehn participated remotely along with city CAO Gayle Jackson.
Councillors Ralph Cipolla, Mason Ainsworth, Ted Emond and David Campbell attended the meeting at the Orillia City Centre in person along with the mayor, Fire Chief Brent Thomas, Lang and a few other senior staffers.
The meeting was live-streamed on Rogers TV
