federal provincial pandemic funding
Oakville will receive about $6.9 million in provincial and federal funding to help cover the costs of running the town during a pandemic.
Like all other municipalities, the town is dealing with a massive drop in revenue and unexpected costs to respond to the COVID-19 crisis.
On Wednesday, an Ontario government funding announcement earmarked $4.5 million to help the town cover operating costs, and an additional $2.4 million for transit costs.
The Region of Halton will also receive $12.6 million in emergency funding.
The money is part of a $4 billion emergency package for Ontario municipalities under the federal-provincial Safe Restart Agreement.
“My council colleagues and I are pleased that the provincial and federal governments have delivered on their promise to provide financial assistance to municipalities,” said a statement released by Mayor Rob Burton.
He added that the money will help the town “continue to provide the high-quality facilities and services Oakville residents expect.”
The cash will be delivered this fall, to help the town cover an anticipated $10.3 million dollar shortfall caused by COVID-19 shutdowns this year.
Ridership down at least 70 per cent
Revenue from buses – which ran fare-free for more than three months – and shuttered recreation programs are big contributors to the hole in the budget.
As of July, Oakville Transit returned to front-door boarding and fare collection. That has allowed the service to assess the impact of the pandemic on ridership levels, said director Barry Cole.
“We’re currently at 25 to 30 per cent of what our normal ridership would be,” he said. “We appear to be tracking upwards, but slowly.”
But empty GO station parking lots provide evidence that work from home hasn’t yet returned to the office, noted Cole. The impact of that trend on the transit service could drag on into the future.
Buses are expected to get a bit busier in September, as high school and some Sheridan College students return to classes.
With that expected “mild to moderate bump” in ridership, Cole is hopeful Oakville Transit will reach about 50 per cent of pre-pandemic ridership by the end of 2020.
“We also anticipate that through 2021 it will continue to come back to us,” he said. “We’ve put in a lot of safety measures to make sure people can ride the service with confidence.”
The $2.4 million funding for Oakville Transit will help cover the costs of installing driver barriers, paying for increased cleaning and managing the loss of fare box revenue.
Additional funding promised
The province described Wednesday’s announcement of a total of $695 million for municipalities as Phase 1 funding. It was allocated on a per household basis.
It is promising an additional $695 in Phase 2 funding “after municipalities have provided the province with information on their estimated COVID-19 related financial pressures.”
A Social Services Relief Fund will also allocate $212 million to municipalities that apply for help in managing shelter costs for vulnerable people.
The Region of Halton has indicated it intends to ask for $2.4 million to assist local vulnerable residents.
