City to get $124M in pandemic support
Roughly $75 million allocated for public transit
The City of Ottawa is set to receive approximately $124 million as part of the first phase a federal-provincial funding agreement aimed at helping Ontario municipalities recover from the COVID-19 pandemic.
The city will receive roughly $75 million to support its public transit infrastructure, while an additional $49 million has been allocated for "COVID-19 operating costs and pressures," according to a Wednesday letter to city council from Mayor Jim Watson.
The funds are part of the federal government's $19 billion Safe Restart Agreement, aimed at responsibly boosting provincial and territorial economies.
The Ontario government will receive $7 billion overall, with $4 billion devoted to the province's 444 municipalities. Approximately $1.6 billion will distributed as part of the agreement's first phase.
Municipal staff have been asked to "provide a more detailed overview of these funding announcements in an upcoming memo to council," according to Watson.
In late June, city manager Steve Kanellakos told council that pandemic-related expenses are expected to result in a $192 million deficit by the end of 2020.
In his letter to council, Watson said the $124 million in provincial support represents a "very significant down payment" on that projected deficit.
Tourism, Culture and Sport Minister Lisa MacLeod — who also represents the Nepean riding — said the $49 million in municipal support will be available in September, according to a Wednesday media release.
