Windsor City Hall, December 2019. (Photo by Maureen Revait) Windsor City Hall, December 2019. (Photo by Maureen Revait)
Windsor

COVID-19 could impact Windsor's finances by $29.7M

When Windsor city councillors next meet, they will likely discuss the pandemic's impact on the city's finances.

A previous report in May suggested Windsor's response to COVID-19 cost $11 million as of the end of April. An update by Deputy Treasurer Tony Ardovini said the grand total by the end of 2020 could be more than double that amount.

The report for Monday's meeting said, "the total net financial impact to the city for 2020 is approximately $29.7 million."

Since the beginning of the pandemic, Windsor has forgone $36.6 million in revenues, including $6.6 million for hosting Caesars Windsor, and $1.5 million from parking enforcement.

The city also deferred property taxes for three months at the end of March.

At the same time, costs associated with COVID-19 could cost $15.4 million. Some of those expenditures have included personal protective equipment for staff at Huron Lodge.

That would bring the total to $54 million if not for reduced expenditures and grant funding from senior governments. The City cut spending by $16.7 million in a bid to rein in costs and has received $5.6 million in grants.

While departments like the public works department and employment and social services anticipate surpluses, others, like recreation and culture, and transit could see deficits of $5.2 million and $4.8 million. Windsor Fire and Rescue could be $746,000 in the red by year's end.

Windsor Mayor Drew Dilkens on June 26, 2020 (Photo by Adelle Loiselle) Windsor Mayor Drew Dilkens on June 26, 2020 (Photo by Adelle Loiselle)

In the past, Mayor Drew Dilkens has said he does not intend to raise property taxes in 2021.

As have other big-city mayors, he has called on the federal and provincial governments to provide emergency funding to avoid deep cuts to services and further layoffs.

From the report, "it is also very clear that due to the magnitude of the financial impacts being experienced, and provincial legislation that requires municipalities to balance their budgets, that all municipalities are counting on emergency financial assistance from the federal and provincial governments to make up the bulk of their shortfall."

On Monday, the Association of Municipalities of Ontario joined the Federation of Canadian Municipalities' call for at least $10 billion in aid.

The request is not without critics. The Canadian Taxpayer Federation is pushing back against the demand saying, "they need to tighten their belts and get spending under control."

"Municipal governments are peddling a false binary to deal with the holes in their budgets: raise taxes or cut services," said CTF's Ontario Director Jasmine Moulton. "There's a better option for struggling taxpayers: municipalities should tighten their belts, stop wasting taxpayers' money and bring spending under control."

It recommends cancelling pet projects and reducing government employee compensation.

"If municipalities were truly desperate, they would -- reduce the size and cost of government -- including their own salaries which are grossly out of line with reality," continued Moulton.

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