City hall optimistic Ontario will fund COVID-19 shortfalls

Despite not seeing any specific commitmentsin the Ontario budget to fund Ottawa's COVID-19 related financial shortfalls for 2021, the city's electedofficials are optimistic that the province will provide the money they need.

Ottawa is facing a deficit of up to $153.5 million next year if the pandemic continues for another 12 months, Mayor Jim Watson saidWednesday in his budget speech. That's on top of the $181-million shortfall Ottawa is expecting for 2020 only 68 per cent of which has been covered so far by upper levels of government.

The provincial budget tabled Thursday did not announce any new money for municipalities. Instead, the document pointed to the$1.9 billion the province allocatedfor cities and transit services, which was matched by the federal government, for a total of $4 billion for municipalities in Ontario.

The mayor said he's "very optimistic the money will come."

The province has sent out a second roundof applications for funding for 2020, which he said is a "good sign,"and that he's had promising discussions with provincial officials in which they've assured him the city will be "made whole" for any COVID-19 related shortfalls.

"The reality is that the funding that we are seeking to make us whole this year and next year would be a federal-provincial programthat would still have to be negotiated There's still plenty of time to do that."

• City facing $153M deficit for 2021 if COVID-19 lasts another year
• OPH seeks extra $24M for COVID-19 costs in 2021 budget

Chair of health board hopeful

Coun. Keith Egli, who chairs the OttawaBoard of Health, also expressed cautious confidence that the province will cover off the extraordinary costs borne by Ottawa Public Health (OPH) to deal with the pandemic. Earlier this year, OPH which is funded 70 per cent by the province and 30 per cent by the city said it would need an extra $12 million to cover COVID-19 related costs for 2020.

This week, OPH isprojecting it will need up to $24 million in 2021 if the pandemic continues at this pace.

"I would have felt a bit more comforted if we had some more clarification around the$12-million deficit for this year," said Egli. "Every indication is that they are going to cover it for us, so ... I'm still hopeful that that'sthe case and the money will be there."

Province allows new property tax class

The province is also allowing municipalities to create a new property tax category for small businesses, so that cities could "target tax relief"to eligible properties.

The mayor said he'd have to look at the proposal more closely, but hewas not immediately enthused.

• Ottawa Public Health concerned about keeping up non-pandemic work

"If you're going to lower someone's taxes, you're going to raise them somewhere else, and we'd have to raise them on residential property taxpayers," he said.

In the city's draft 2021 budget, the owner of a commercial property assessed at $460,000 will see their tax bill increased by $231.