Kitchener-Waterloo

Ontario's large cities need emergency federal funding, mayors say

Ontario’s big cities say they don’t want to go into the red to pay for drinking water, first responders and other essential services during the COVID-19 pandemic. Instead, Guelph Mayor Cam Guthrie says they’re hoping the federal government will provide emergency funding.

Guelph Mayor Cam Guthrie says cities suffering from missing transit fees, other sources of revenue

Guelph Mayor Cam Guthrie says a sharp decline in transit fees and other sources of revenue are causing pain to Ontario municipalities. He wants the federal government to cough up emergency funding. (Kate Bueckert/CBC)

Ontario's big cities say they don't want to go into the red to pay for drinking water, policing and other essential services during the COVID-19 pandemic.

Instead, they're hoping the federal government will provide emergency funding to compensate for a lack of transit fees and other sources of revenue, Guelph Mayor Cam Guthrie said in a news release.

"I implore the federal government to take significant and immediate action to assist municipalities facing unparalleled financial hardship during this period of great uncertainty," said Guthrie, who also chairs the Large Urban Mayors' Caucus of Ontario.

Across Canada, municipalities are facing similar financial hardships, according to the Federation of Canadian Municipalities. Without federal help, municipalities say they face a shortfall of between $10 billion and $15 billion over the next six months and may need to further cut services or approve large tax increases.

Prime Minister Justin Trudeau has said municipalities are governed by the provinces, but that his government would work with provinces and "directly with municipalities" on issues.

In Ontario, the mayors' caucus represents 29 cities with a population of 100,000 people or more.

So far, the mayors say they've lost about $70 million in transit revenue alone since the pandemic began and have few options left to make up the difference. 

"Deficits are not the answer," Guthrie said in the release. "That's why we need better tools in the toolbox, such as emergency operating funding, to keep critical services running."

CBC News reached out to Finance Canada for comment but did not immediately receive a response.

With files from the Canadian Press