The City of Victoria learned Thursday that it will receive $6.5 million in COVID-19 relief money from the federal and provincial governments to help offset pandemic-related losses.
Mayor Lisa Helps said the money couldn’t have come at a more opportune moment with the city heading into 2021 budget talks. “It’s going to really help us continue to deliver the services that people count on,” she said. “The timing was great.”
A draft budget presented to council Thursday recommended a series of cost-cutting moves aimed at limiting next year’s property tax increase to 1.7 per cent.
But Helps said the relief money will give council a bit more room to manoeuvre.
“I know that from speaking with people across the country that our premier fought hard for the funding for municipalities, along with other premiers,” she said. “And I really want to express our gratitude to the provincial government and the federal government for helping us out through these challenging times.”
Vancouver Mayor Kennedy Stewart sounded less appreciative this week, complaining that the province had “shafted” his city by delivering $16 million instead of an expected $60 million.
But Municipal Affairs and Housing Minister Selina Robinson said in a statement that the distribution of $540 million in federal and provincial Safe Restart funding was designed to be fair and equitable and help communities regardless of size.
“The funding formula provides more money to larger communities, but a higher per capita level of funding to smaller and mid-sized communities because we know that smaller municipalities generally do not have reserves to draw on like larger municipalities,” Robinson said. “And many small communities, especially tourism-dependent ones, have less diverse revenue bases that have been hit hard by COVID-19.”
Victoria budget documents show the city was expecting to receive “several million” from the program, but didn’t know the exact figure.
“We’re very pleased to hear that it is actually a very sizable amount,” Susanne Thompson, deputy city manager and chief financial officer, told council.
“This actually provides us with an opportunity, because it is actually more than I thought it would be based on the initial conversations with the province.”
Prior to learning the final amount, city staff had recommended that council reallocate $3 million in capital money to help offset cost increases and lower revenues due to the pandemic.
But Thompson said the $6.5 million will allow council to leave that capital money alone and proceed with important upgrades to roads and other infrastructure.
“With this new money, we’ll be able to do those capital projects,” Helps said. “And capital projects are great because it means money and jobs.”
Thompson is recommending as well that council consider using $1.7 million of the remaining relief money to cover cleanup, security and other costs associated with people sheltering in city parks during the pandemic.
Otherwise, staff say, the city will be forced to cut core services such as garbage collection, street sweeping and washing, and cleaning parkades.
A city report says there are currently 250 to 270 shelters in parks and public places. The numbers swelled in the wake of the pandemic when shelters were forced to close or reduce beds in order to meet physical distancing requirements.
Council unanimously agreed Thursday to spend up to $2,800 a month on transit tickets for people sheltering in city parks. The program will allow people without homes to take buses to locations, such as Our Place, that provide hot showers and other services.
