City's Financial Update

Since the beginning of the pandemic in March of this year, along with so many individuals and other organizations, the City has been facing unprecedented challenges. At the height of the pandemic, the City was losing revenue of over $65 million per week and for this year (2020), depending on a final assessment of our financial situation, the City could be facing a revenue shortfall of $1.35 billion or greater. Unlike the federal or provincial governments, the City cannot legally (provincial laws) operate in a deficit. We, along with many other municipalities, called on the federal and provincial governments to assist our City in meeting the financial challenges associated with the pandemic. In July, the federal government announced a $19 billion program to assist municipalities across the country including those in Ontario. The Ontario Government, which will manage the federal funding of approximately $7 billion, has announced that $4 billion will flow to Ontario's 444 municipalities to support them. This August, the province further clarified how this funding would be allocated. Toronto will receive $404 million to provide immediate relief for the TTC from the financial pressures causes by the pandemic. In addition, the City will be receiving $145.7 million in support for COVID-19 related operating costs and pressures and $118.8 million for social service supports. While these announced steps are welcome and very badly needed, they do not fully address the expected City of Toronto revenue shortfall of $1.35 billion. While this is progress, much work remains ahead of us.

 

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