HomeMy WebLinkAbout2020-04-28 Council Workshop Agenda and Reports.pdfCity of Maple Ridge COUNCIL WORKSHOP AGENDA April 28, 2020 11:00 a.m. Council Chambers, 1st Floor, City Hall The purpose of the Council Workshop is to review and discuss policies and other items of interest to Council. Although resolutions may be passed at this meeting, the intent is to make a consensus decision to send an item to Council for debate and vote or refer the item back to staff for more information or clarification. The ----------------- ---- -meeting is live streamed and recorded by the City of Maple Ridge. REMINDER: April 28, 2020 Council Meeting 7:00 p.m. Council Chambers 1. APPROVAL OF THE AGENDA 2. ADOPTION OF MINUTES 2.1 Minutes of the April 14, 2020 Council Workshop Meeting 3. PRESENTATIONS AT THE REQUEST OF COUNCIL 4. UNFINISHED AND NEW BUSINESS 4.1 Fire Master Plan Presentation by the Fire Chief 4.2 Request for Federal Funding to Stabilize Public Transit Staff report dated April 28, 2020 recommending that the request to the Government of Canada through the Canadian Urban Transit Association ("CUTA") for emergency funding to assist public transit operations across Canada be endorsed. 5. CORRESPONDENCE 5.1 Federation of Canadian Municipalities ("FCM") -Protecting Vital Municipal Services Correspondence dated April 23, 2020 from the Federation of Canadian Municipalities (FCM) outlining the urgent request to the Federal Government to provide emergency operating funding for municipalities in order to address the financial crisis facing Canadian cities and communities due to COVID-19. 6. BRIEFING ON OTHER ITEMS OF INTEREST/ QUESTIONS FROM COUNCIL Doc#2392404
Council Workshop Agenda April 28, 2020 Page 2 of 2 7. MATIERS DEEMED EXPEDIENT 8. NOTICE OF CLOSED COUNCIL MEETING The meeting will be closed to the public pursuant to Sections 90 (1) and 90 (2) of the eommunity-eharterasihe-subject-matterb-etrrg-considered-retatesto-the-fulluwing: Section 90(1)(e) The acquisition, disposition or expropriation of land or improvements, if the council considers that disclosure might reasonably be expected to harm the interests of the municipality. Section 90(1)(i) The receipt of advice that is subject to solicitor-client privilege, including communications necessary for that purpose. Section 90(1)(k) negotiations and related discussions respecting the proposed provision of a municipal service that are at their preliminary stages and that, in the view of the council, could reasonably be expected to harm the interests of the municipality if they were held in public. Any other matter that may be brought before the Council that meets the requirements for a meeting closed to the public pursuant to Sections 90 (1) and 90 (2) of the Community Charter or Freedom of Information and Protection of Privacy Act. 9. ADJOURNMENT APPROVED BY: CHECKED BY: DATE: DATE: l: ' ,_ ' :.--= I-
City of Maple Ridge
COUNCIL WORKSHOP MINUTES
April 14, 2020
The Minutes of the City Council Workshop held on April 14, 2020 at 11:06 a.m. in the
Blaney Room at City Hall, 11995 Haney Place, Maple Ridge, British Columbia for the
purpose of transacting regular City business.
PRESENT
Elected Officials
Mayor M. Morden
Councillor J. Dueck
Councillor K. Duncan
Councillor C. Meadus
Councillor G. Robson
Councillor R. Svendsen
Councillor A. Yousef
Appointed Staff
A. Horsman, Chief Administrative Officer
D. Boag, Acting General Manager Parks, Recreation & Culture
C. Carter, General Manager Planning & Development Services
C. Crabtree, Acting General Manager Corporate Services
D. Pollock, General Manager Engineering Services
T. Thompson, Chief Financial Officer
S. Nichols, Corporate Officer
Other Staff as Required
J. Clelland, Assistant Chief Fire Prevention & Emergency Program
C. Cowles, Manager of Community Social Safety Initiatives
M. Orsetti, Director of Bylaw & Licensing Services
B. Ozeroff, Manager of Permit Services
L. Zosiak, Manager of Community Planning
Note: These Minutes are posted on the City Web Site at www.mapleridge.ca
Note: Due to the COVID-19 pandemic, Council members participated electronically.
Due to technical issues, Councillor Duncan was not present at the start of the meeting.
1.APPROVAL OF THE AGENDA
R/2020-142
It was moved and seconded
That the agenda of the April 14, 2020 Council Workshop Meeting be approved
as circulated.
CARRIED
2.1
Council Workshop Minutes
April 14, 2020
Page 2 of 4
2. MINUTES
2.1 Minutes of the March 31, 2020 Council Workshop Meeting
R/2020-143
It was moved and seconded
That the minutes of the Council Workshop Meeting of March 31, 2020 be
adopted as circulated.
CARRIED
3. PRESENTATIONS AT THE REQUEST OF COUNCIL – Nil
4. UNFINISHED AND NEW BUSINESS
Councillor Duncan entered the meeting at 11:09 a.m.
4.1 Community Social Safety Initiative Update (COVID-19 Response)
The Acting General Manager Corporate Services introduced the Manager of
Community Social Safety Initiatives who provided a detailed presentation and
responded to questions from Council.
The presentation included the following information:
• Response to COVID-19 – Bylaw services redeployment;
• An update on the CSO Hiring, inspectors, and ambassadors;
• The exploration of dataset relationships and dashboard to track metrics;
• The Volunteer Community Ambassador Program; and,
• The ongoing support and advice from the Consultants.
Councillor Robson left the meeting at 12:06 p.m.
4.2 Detached Garden Suite (DGS) Project Outcomes
Staff report dated April 14, 2020 providing an outline of the DGS Pilot Project
process and input received from the pilot project property owners.
The Manager of Community Planning provided a detailed presentation and
responded to questions from Council.
Councillor Robson was not present at the beginning of the presentation and reentered
the meeting at 12:14 p.m.
Council Workshop Minutes
April 14, 2020
Page 3 of 4
4.3 Strategic Transportation Plan
The General Manager Engineering Services provided a detailed presentation
and responded to questions from Council. Mr. Pollock advised that the vacant
Director of Engineering position will be filled in the coming weeks.
R/2020-144
It was moved and seconded
That the meeting recess for 30 minutes.
The Mayor reconvened the meeting at 2:10 p.m.
R/2020-145
It was moved and seconded
That the meeting be closed to the public pursuant to Sections 90(1) and 90(2)
of the Community Charter as the subject matter being considered relates to the
following:
Section 90(1)(a) Personal information about an identifiable individual who
holds or is being considered for a position as an officer,
employee or agent of the municipality or another position
appointed by the municipality.
Section 90(1)(e) The acquisition, disposition or expropriation of land or
improvements, if the council considers that disclosure might
reasonably be expected to harm the interests of the
municipality.
Section 90(1)(f) Law enforcement, if the council considers that disclosure
might reasonably be expected to harm the conduct of an
investigation under or enforcement of an enactment.
Section 90(1)(k) Negotiations and related discussions respecting the
proposed provision of a municipal service that are at their
preliminary stages and that, in the view of the council, could
reasonably be expected to harm the interests of the
municipality if they were held in public.
Any other matter that may be brought before the Council that meets the
requirements for a meeting closed to the public pursuant to Sections 90 (1)
and 90 (2) of the Community Charter or Freedom of Information and Protection
of Privacy Act.
R/2020-146
It was moved and seconded
That the meeting be recessed and reconvened following the conclusion of the
Closed Council meeting.
The Mayor reconvened the meeting at 4:13 p.m.
Council Workshop Minutes
April 14, 2020
Page 4 of 4
4.4 2020 Citizen Survey
Staff report dated April 14, 2020 providing details on the 2020 Citizen Survey.
The Acting General Manager of Corporate Services provided a presentation on
the 2014 survey results and what a 2020 survey process would look like. She
responded to questions from Council.
4.5 Federation of Canadian Municipalities (“FCM”) and Union of British Columbia
Municipalities (“UBCM”) Resolutions
The Corporate Officer advised that the 2020 Federation of Canadian
Municipalities (“FCM”) Conference has been cancelled due to the COVID-19
crisis. Ms. Nichols reminded Council that the deadline to submit resolutions
directly to the September Union of BC Municipalities (“UBCM”) Conference is
June 30, 2020 and that resolutions must be provided to her early in May in
order to get the resolutions approved by Council.
5. CORRESPONDENCE – Nil
6. BRIEFING ON OTHER ITEMS OF INTEREST/QUESTIONS FROM COUNCIL – Nil
7. MATTERS DEEMED EXPEDIENT – Nil
ADJOURNMENT – 4:42 p.m.
_______________________________
M. Morden, Mayor
Certified Correct
___________________________________
S. Nichols, Corporate Officer
TO: FROM: His Worship Mayor Michael Morden and Members of Council Chief Administrative Officer City of Maple Ridge MEETING DATE: FILE NO: MEETING: April 28, 2020 11-8500-01 Workshop SUBJECT: Request for Federal Funding to Stabilize Public Transit EXECUTIVE SUMMARY: On April 20, 2020, Translink announced a series of substantial cost-saving measures in response to their significant financial losses incurred related to the COVID-19 pandemic. In light of facing losses of $75 million per month with ridership down by 83%, Translink has stated it is not feasible to continue to operate the regional transit system at current levels. Assuming a commitment from the Province to resume near-regular service in September 2020, the regional transportation authority has announced organizational and program cost-saving measures along with a number of transit service suspensions on Bus, SkyTrain, SeaBus and West Coast Express. While the ridership across the Region has significantly diminished, the transit suspensions identified will have a significant impact in Maple Ridge as it includes the elimination, albeit temporarily, of service to Silver Valley, Ruskin and Whonnock, while reducing service in Albion and central Maple Ridge. The routes within Maple Ridge that will be suspended in mid-May are #733, #7 41, #7 44, #7 48 and the #749. Access to SkyTrain will be reduced through the suspension of the R3 Rapid Bus to Coquitlam Centre and the #791 to Braid Street leaving only the #701 in service. These suspensions will take place by April 24, 2020. For the West Coast Express, only three trains will run, with fewer cars. The massive financial constraints are not only an issue in this Region. The Canadian Urban Transit Association (CUTA) is Canada's largest public transport lobby that includes within its membership most Canadian transit agencies including Metro Vancouver, Toronto and Montreal. In recognition of similar COVID-19 related transit funding pressures in most Canadian communities, including Translink serviced area of Maple Ridge, CUTA is reaching out to Canadian municipalities, seeking motions of support for its request for federal funding to stabilize public transport until the crisis is addressed. As such, the purpose of this report is to affirm Council's support of CUT A's request to the Government of Canada for an infusion of funds to maintain the public transit system across the country. 4.2 Doc#2435628 Page 1of2 :~ ' --1 ·~
RECOMMENDATION: WHEREAS the situation of an unprecedented drop in public transit ridership provoked by the COVID-19 outbreak accompanied by massive revenue losses is affecting public transit agencies right across Canada putting in jeopardy their financial viability and future ability to operate; AND WHEREAS the Canadian Urban Transit Association (CUTA), Canada's largest public transport lobby, the membership of which includes most Canadian transit agencies has called for urgent emergency funding to address the immediate liquidity issues of transit operators while providing financial stability while ridership rebuilds; AND WHEREAS it is estimated that nationally as many as 40 per cent of systems may require bridge funding over the coming months requiring some $1.2 billion to help them keep the buses and trains running, up to $400 million a month to keep services running as fare box and other revenues drop by up to 100 per cent; AND WHEREAS it is noted that it will likely take some time for transit operators to rebuild ridership to February 2020 levels during a gradual return to more normal economic activity and without a quick infusion of funds by the Government of Canada it is impossible to assure that the gains made over the past decade in growing the modal share of all rides taken via collective transit will not be lost; AND WHEREAS while transit is a provincial jurisdiction, only the Government of Canada has the budgetary capacity to stabilize public transit during the COVID-19 emergency it is recommended: THAT the request to the Government of Canada through CUTA for emergency funding to provide immediate liquidity to transit operators and on-going funding to alleviate revenue loss as ridership rebuilds be endorsed by the City of Maple Ridge Council; and further THAT a copy of this motion be sent to the Prime Minister of Canada, the Minister of Transport of Canada and the Minister of Finance of Canada. CONCLUSION: The COVID-19 pandemic is having a massive impact on all facets of society, including public transit systems. Regionally, Translink ridership is down over 83% and the overall system is losing over $75 million a month, which is not sustainable. Translink does believe that with a commitment from the Province, near-regular service can be restored by September but in the intervening period, Translink is seeking to limit the degree offinancial losses by introducing cost saving measures. CUTA is seeking Council's support for the Government of Canada to provide emergency funds to assist public transit operations across the country. ~~ Prepared by: David Pollock, PEng. m~Nices Concurrence: Al Horsman Chief Administrative Officer Doc#2435628 Page 2 of 2
Protecting
vital municipal
services
Urgent federal recommendations to
address the fnancial crisis in our cities
and communities due to COVID-19
April 23, 2020
5.1
Contents
This is a crisis
1
Local leaders
on the
front lines
2
Anatomy of our
fnancial crisis
4
Fiscal impacts
of COVID-19
6
Summary of
recommendations
8
Proposed
funding model
10
Eyes on
the future
12
This is a crisis
A message from FCM’s president
In a matter of weeks, the COVID-19 pandemic
has turned life upside down. We now face a public
health and economic challenge unlike anything
we’ve seen in our lifetime. As municipalities across
the country work to support frontline action
and ready essential response services, the
fnancial impact to our operations has created
a crisis—and threatens to put the Canadians
we serve at further risk.
Across Canada, cities and communities are seeing
their fnances drift toward collapse. This crisis
exposes the cracks in an outdated model that
is fundamentally misaligned with the modern
reality of the role of local governments. Revenues
are plummeting. Unanticipated costs are rising.
With few fscal tools available—and no legal
ability to run operating defcits—local leaders
face stark choices. Protecting essential services
now requires support from other orders
of government.
Today, FCM is making that urgent request
on behalf of cities and communities across
the country. We are calling for emergency
operating funding for municipalities—to keep
essential services running and Canadians
safe and protected.
1 Protecting vital municipal services
Canadians are depending on the vital services
their local leaders provide, from ensuring tap
water is clean to sending paramedics to help
the sick to safely sheltering our most vulnerable
residents. Cutting back services in the middle of
a pandemic would put Canadians at further risk.
Instead, municipal leaders must continue to help
lead the way, supporting people and businesses
through this public health and economic storm.
To ensure this work continues with the urgency
required—on the ground, where Canadians live—
direct emergency federal funding is the only
option.
Our federal-municipal partnership has delivered
remarkable results. Deepening that partnership
now will protect Canadians through this pandemic.
And when the time comes, local leaders will be
ready to help lead Canada’s recovery, so this
country can prosper and thrive once again.
Bill Karsten
FCM President
Local leaders on the front lines
Our cities and communities are the
front lines of the COVID-19 pandemic.
These are the places where Canadians
go to work, buy homes, start families,
launch businesses, and build the
future of this country. As the
governments closest to daily life,
municipal leaders are mobilizing
urgently to keep Canadians safe,
and to help people and businesses
weather the economic storm.
Municipalities of all sizes are taking extraordinary
measures to support Canadians—including our
most vulnerable—through this unprecedented
public health and economic challenge. They’re
turning arenas into shelters for the homeless.
They’re setting up portable hygiene stations.
They’re deferring property taxes and utility
bills for struggling families.
Municipalities are also working day and
night to keep essential services running. Bus
drivers, paramedics, frefghters, social workers
and countless other frontline staff are putting
themselves at risk every day to keep Canadians
safe and to provide the services people rely on.
In the face of this challenge, essential workers
and local leaders are stepping up together as
champions for their communities, and this country.
As the national voice for local governments, FCM
is fully engaged in this nationwide crisis. We’re
bringing together communities across the country
to help protect people and businesses. Through
regular touchpoints with our members—from
FCM’s Big City Mayors’ Caucus and Rural Forum
to our provincial-territorial municipal association
partners and others—we’re convening local
expertise, sharing resources and coordinating
frontline response efforts.
We’re also working directly with federal
departments, agencies and decision-makers
to help inform Canada’s pandemic response.
That includes regular scheduled calls with the
deputy prime minister and key ministers. This
unprecedented engagement is bringing local
realities to new federal initiatives—from the
Canada Emergency Response Beneft to
the Canada Emergency Wage Subsidy—to
ensure they meet the needs of Canadians
on the ground.
2 Protecting vital municipal services
Municipalities in action
The City of Edmonton, AB has waived transit
fares on all routes and has deployed larger
buses to encourage physical distancing, while
ensuring essential workers have a safe and
reliable way to get to work.
The public library in the Town of Halton Hills, ON
is using 3D printers to make face shield parts
for frontline health care workers. It’s also left its
Wi-Fi on—despite being closed—so residents
without Internet access can apply for provincial
and federal resources.
Vital municipal services
at a glance
COVID-19 is shining a spotlight on the vital role
municipalities play in daily life. Now more than
ever, Canadians are depending on their local
leaders to keep essential services running—to
keep people safe and secure through this
pandemic. That includes:
} Local police, ambulance and fre services
} Maintenance of roads, bridges and other
essential infrastructure
} Safe public transit for essential workers
} Clean water and wastewater services
} Garbage collection and recycling
} Local social services and housing
for vulnerable residents
} Local public health agencies
} Sustainability and environmental initiatives
The municipality of Canton De Gore, QC has
set up a home delivery service for seniors and
vulnerable residents—staffed by volunteers—
to bring groceries and prescriptions to people
confned to their homes.
For more examples of municipal action during
the pandemic, go to fcm.ca/COVID19.
Paramedics are on the frontlines providing life-saving
services including emergency and non-emergency
pre-hospital care to residents. Photo: City of Toronto
When the time comes, municipalities will also
be ready to lead Canada’s recovery, along with
our federal partners. Local leaders are already
delivering frontline results for Canadians. And
they are exceptionally well-placed to deliver
stimulus funding quickly—to create jobs and get the
economy going. Deepening the federal-municipal
partnership even further will help Canada thrive
and prosper once again.
3 Protecting vital municipal services
Anatomy of our fnancial crisis
At the best of times, Canada’s
municipal governments manage a
razor-thin fscal balance to deliver
for residents. On the revenue side,
they have scant ground to till
beyond property taxes and user fees.
On the expense side, operating and
capital, they must be tremendously
cost-effcient with every dollar
available. With no legal standing
to carry operating defcits, they
diligently maintain reserves to
carry our communities through
cyclical shifts and disruptions.
But these are historically challenging times.
Municipalities are incurring deep losses due to
COVID-19—a combination of foregone revenues
(from property taxes and user/utility fees) and
unanticipated costs (including public safety
measures and support for vulnerable populations).
This is not limited to a cash fow challenge; this
is a crisis of non-recoverable losses. To continue
delivering essential services, many are drawing
down limited reserves that were not designed
for a crisis of this scale or duration.
Today’s crisis exposes cracks in the fundamentally
outdated fscal framework in which municipalities
are still forced to operate. And as we now approach
a tipping point, our next steps will reverberate
through the lives of Canadians. Insolvency is not an
option. Bridge loans cannot address this crisis of
permanent losses. Cutting essential services is not
an acceptable option, not when Canadians need us
most. This is why we are turning to our federal part-
ners for emergency operating funding—to sustain
municipal operations and essential services through
these extraordinary times.
Municipal waste collection operators are keeping
municipalities clean and green, while delivering
essential services so residents can stay at home.
Photo: City of Toronto
This action will protect essential services
Canadians rely on. No one should have
to worry if their tap water is clean,
whether their garbage will stay on
the curb, or when a fre truck or
ambulance will arrive.
4 Protecting vital municipal services
To keep drivers and riders safe, The City of Windsor’s WFCU Centre, home of the Windsor Spitfres Junior-A
the City of Selkirk, MB, installed hockey club, has been transformed into a make-shift foodbank to help those
Plexiglas shields and closed off in need during the pandemic. Photo: City of Windsor
alternating rows inside the buses
to encourage physical distancing.
Photo: City of Selkirk
This action will protect the most vulnerable
among us. We must continue deploying extra-
ordinary measures to protect people who face
enormous challenges staying safe—in our
shelters, on our streets.
This action will support Canada’s economic
recovery. Municipalities will need to hit the
ground running to turn stimulus funds into
outcomes—and not be cancelling even
existing capital projects.
Like never before, our municipal-federal
partnership has been building better lives for
Canadians. Our partnership is grounded in our
respective strengths—local leaders are delivery
experts closest to people’s real needs, the federal
government has the fscal heft to drive nationwide
progress. Today, right now, this partnership is the
key to carrying Canadians through this pandemic
into better days ahead.
Protecting property taxpayers
Covering municipal losses through a
one-time property tax levy is not a viable
alternative to federal emergency funding
given the signifcant impact it would have
on households trying to weather the eco-
nomic downturn. Bridging municipalities’
2020 fscal shortfalls without cutting
services—assuming six months of physical
distancing—would require dramatic
residential property tax levies:
Toronto 56%
Calgary 23%
Vancouver 22%
Montreal 18%
Mississauga 17%
5 Protecting vital municipal services
Fiscal impacts of COVID-19
The fscal impacts of COVID-19
have been swift and dramatic.
Non-recoverable municipal losses
driven by falling revenues and rising
costs have led to an unprecedented
fnancial crisis. To absorb this stagger-
ing hit in the near term, we are calling
for a federal operating infusion of
$10–15 billion over the next six months.
This crisis may compound as physical
distancing measures continue, and
depending on the timing and pace
of future economic recovery.
FCM continues to develop insight on the scale
of losses that municipalities may face on the
road ahead. The extent and nature of losses
vary widely by community, depending on
multiple factors:
} Municipalities with public transit systems
face signifcant revenue losses at the fare
box—estimated at $400 million per month
nationwide. This accounts for 30–50 percent
of monthly net losses for these municipalities.
In Metro Vancouver, Translink is losing
$75 million monthly. The Toronto Transit
Commission reports a $23.5 million weekly
burn rate—with an 85 percent revenue drop
in April alone. Critically, transit is an essential
service for frontline workers in this pandemic,
but with limited ability to reduce operating
expenditures, many transit systems are already
scaling back service to ensure solvency.
} Municipalities are deferring property taxes,
utility and other fees to support struggling
residents in the near-term—another major
revenue hit. Even after these deferral pro-
grams end, there remains a signifcant risk
of property tax delinquency. With even a
10 percent increase in property tax and utility
bill delinquencies, the cities of Vancouver and
Toronto estimate revenue losses in 2020 of
$130 million and $684 million, respectively.
} Municipalities reliant on hard-hit industries
face compounding pressures. In tourism-driven
Banff, Alberta, 85 percent of workers have
been laid off. Tourism Calgary has temporarily
laid off more than half of its staff, and the city
could lose the $540 million economic impact
of the Calgary Stampede. Agriculture: meat
plants in High River, Alberta, and in Montreal
have closed temporarily, impacting a third of
Canada’s beef processing capacity and most
pork exports. Natural resources: Western
Canadian Select is trading at negative prices,
and sawmill closures have put thousands
out of work, jeopardizing pulp mill jobs in
northern and remote communities.
6 Protecting vital municipal services
Like many municipalities, the City of Yorkton
has converted one of their public rinks into a
temporary site run by public health to help
alleviate the impact on local hospitals and
emergency rooms. Photo: City of Yorkton
}The loss of user fees from parking and
community, culture, and recreation facilities is
another source of foregone revenue. Many
municipalities have already temporarily laid off
staff at these facilities to reduce costs. The City
of Mississauga estimates lost revenue from
recreation facilities to reach $23.3 million by
the end of June. The City of Toronto is los-ing
almost $17 million monthly from foregone
parking fees alone. Smaller communities, at
relative scale, stand to take a significant hit as
well. Prince George, B.C., estimates a monthly
loss of $912,000.
}Without emergency operating funding,
municipalities will need to reduce planned
capital expenditures in 2020 to make up for lost
revenues. This will further slow economic
activity across the country and increase
future repair costs. And this scaling-back
is enormously counter-productive to the
coming need to drive Canada’s economic
recovery through new capital investment in
municipal assets, including core infrastructure
and housing.
The Gatineau Police Department controls movement at
the entrance to the territory. Photo: City of Gatineau
}Rural and small communities face their own
unique economic challenges. The agriculture
sector has been hit hard. Some municipalities
have begun laying off staff—despite having
so few to begin with. With limited access to
broadband Internet, many rural Canadians are
unable to work from home. New Brunswick’s
Francophone municipalities are facing a total
monthly loss of $10.5 million. Even before
the pandemic hit, eight percent of Atlantic
Canada’s workforce was already depending
on Employment Insurance benefts.
Protecting vital municipal services 7
Summary of recommendations
With plummeting revenues, rising
expenses and a legal proscription
against running operating defcits,
municipalities are at imminent risk
of having to cut essential services
to Canadians to remain solvent. The
acceptable alternative is emergency
operating funding for municipal-
ities, provided by our stable, trusted,
national partner: the Government
of Canada.
This section summarizes FCM’s urgent
recommendation. This is based on the best
available data on the projected fnancial impact
of COVID-19—amounting to a near-term gap
of $10–15 billion for municipalities nationwide.
It assumes that physical distancing directives
substantially persist for six months, with direct
municipal revenue impacts continuing through
the end of 2020 and possibly into 2021 depending
on the pace of economic recovery.
The core of our recommendation is an
allocation-based formula to deliver a base
level of support to all local governments.
This is supplemented by targeted measures
to meet distinct needs of municipalities
as they continue to keep Canadians fully
served and protected.
Immediate action
1. Deliver at least $10 billion in targeted
emergency operating funding to all local
governments as direct allocations—with a
new hybrid formula modelled on both the
proven federal Gas Tax Fund (GTF) and a
ridership-based allocation for municipalities
that operate transit systems.
} Specifcally, allocate at least $7.6 billion of the
fund using a GTF-style allocation formula for
all local governments, and $2.4 billion based
100% on transit ridership.
} For municipalities that operate transit systems,
provide a single blended transfer.
} Immediately provide advance payments to
municipalities facing urgent liquidity issues.
} Leverage the administrative infrastructure of
the federal Gas Tax Fund, where possible, to
expedite the rollout of dedicated emergency
operating grants.
8 Protecting vital municipal services
Municipal road maintenance staff are working around
the clock to keep roads safe and accessible for those
delivering essential services. Photo: City of Toronto
2. Deliver additional emergency operating
funding to individual local governments
facing unique fnancial pressures related
to COVID-19 that are not fully met by the
hybrid formula above. Our largest urban
centres face distinct challenges supporting
self-isolation, sanitation and good health
among populations struggling with homeless-
ness and mental health challenges. Smaller
communities face unique challenges, starting
with access to health care services that can
support isolation requirements and urgent
care. These and other unique cost drivers
will continue to require targeted supports
for the full duration of this crisis.
Selkirk, MB Mayor Larry
Johansson stopped at a
resident’s window to admire
children’s drawings showing
their appreciation for essential
workers. Photo: City of Selkirk
Medium-term action
3. Commit to revisit the need for additional
operating funding within four months.
} Monitor trends in property tax delinquencies
and consider additional supports for individ-
uals and businesses that may not be able
to pay property taxes after the expiry of
short-term municipal deferral programs.
} Depending on the duration and severity
of the COVID-19 crisis, prepare for possible
additional operating funding assistance in
both 2020 and 2021.
4. Provide local governments with the ability
to transfer unused allocations to the federal
Gas Tax Fund program for capital expenditures
as part of Canada’s COVID-19 economic
recovery plan.
9 Protecting vital municipal services
Proposed funding model
This section presents additional
guidance for the emergency
operating funding outlined in
recommendation #1. Our proposed
model features two components: a
base allocation for all municipalities,
and a supplementary allocation
for municipalities that own and
operate transit systems. To function—
effciently and nationwide—its
design must be straightforward,
direct and fexible.
Base allocation
(for all municipalities)
} At least $7.6 billion based on the federal
Gas Tax Fund formula.
} Assumes average of $35 per capita per month,
and six months of physical distancing (starting
March 2020).
Supplementary allocation
(for municipalities that own
and operate transit systems)
} $2.4 billion based entirely on 2019 transit
ridership (population not included in formula).
} Based on Canadian Urban Transit Association
needs assessment ($400 million/month for
six months) and validated through individual
city estimates.
Design considerations
} Municipalities should receive a single transfer
that combines the base and supplementary
allocation (except in the case of provincially-
owned transit systems, such as BC Transit
and Metrolinx).
} This single transfer should provide maximum
fexibility to local governments to apply funds
towards all operating impacts (foregone
revenue and/or unanticipated costs) related
to the COVID-19 pandemic.
10 Protecting vital municipal services
}
} No provincial or municipal matching funds
should be required.
}Requiring provincial matching could cause
delays given the varied fscal capacities of
provincial/territorial governments. However,
provinces and territories continue to have an
important role to play in providing targeted
supports for local governments including,
but not limited to:
w direct support for COVID-19 emergency
response and support for vulnerable
populations;
w expansion or backstop of property tax
deferral programs (especially long-term
deferment programs that will delay taxes
beyond a single fscal year);
w block operating grants for
local governments.
}Given signifcant downside risks—including
the likelihood of future pandemic waves that
require physical distancing, and the potential
for property tax delinquencies—it is likely
that the full allocation under an emergency
operating grant will be fully utilized by
local governments.
The Vulnerable Person’s Registry is a critical program
where the elderly and people with special needs are
contacted daily, making sure that they are safe and
their needs are being met. Photo: Regional Municipality
of Wood Buffalo
Any limited unused funding could be reserved
for additional COVID-19-related operating
shortfalls in 2020 or 2021, or transferred
to the federal Gas Tax Fund to be used for
incremental capital expenditures as part
of Canada’s COVID-19 recovery plan.
Potential impact (all numbers rounded and approximate):
Municipality Preliminary
net losses*
Base allocation
(GTF formula)
Supplementary
allocation
(transit)
Total
allocation
City of Toronto $1.690B $575M $575M $1.150B
Metro Vancouver** $900M $510M $290M $795M
City of Calgary $400M $255M $115M $370M
*preliminary estimates assuming full year impact of six months of physical distancing
** extrapolation of data provided by City of Vancouver (local government not including transit)
and TransLink (transit)
11 Protecting vital municipal services
Eyes on the future
Right now our focus is on tackling
the public health and economic crisis
in our cities and communities—and
ensuring local leaders can continue
to deliver the essential services
Canadians rely on. But we’re also
keeping an eye on the future—for
when Canada is ready to move
from response to recovery.
Across the country, municipalities have already
begun taking steps to help drive the massive
nation-building effort that will be required when
the pandemic ends—from getting local businesses
back on their feet to implementing job-creating
stimulus projects. FCM is supporting this work
by collecting and analyzing on-the-ground data
that will inform recommendations for Canada’s
recovery. From housing, to infrastructure, to
green, sustainable and resilient projects, cities
and communities have a long track-record
of delivering results effciently and effectively.
Municipalities will be essential partners in
rebuilding the economy we want for the future.
But as with any crisis, it will be just as important
to learn lessons from this pandemic. We will
honour and celebrate how Canadians and their
governments came together in common cause.
We will also need to take a critical look at the
foundational cracks that have been more harshly
exposed in how we approach the role of local
governments. In clear view are the outdated tools
and authorities granted to municipal leaders,
and how they simply do not match the modern
role cities and communities play in supporting
Canadians and driving our economy. When the
time is right, FCM and local leaders will be ready
to have that conversation.
In the immediate, we will continue working
fat-out, as partners on the front lines, to keep
Canadians as safe as possible, and ready our
economy for the comeback we’re confdent we
can collectively drive. We’re all in this together.
12 Protecting vital municipal services