Mayor: Ottawa's 'fast-track' funding for city roads, bridges should only be first step

Article content

Mayor Ed Holder struck a positive tone on Monday as the federal government announced plans to fast track this year’s funds for roads, bridges and other public works, while also calling on both Ottawa and Queen’s Park to “do more” for cities struck hard by the coronavirus pandemic.

Holder already warned city hall is “bleeding cash,” with London facing a deficit of $33 million by summer’s end thanks to COVID-19 costs.

That’s despite more than $24 million in cost savings and unexpected investments from the provincial and federal governments that also stem from the virus and subsequent shutdown. More than 1,300 casual and seasonal workers employed by city hall have been laid off and non-essential spending – such as office supplies and new hires – put on hold.

“Prime Minister (Justin Trudeau) sent a strong signal that our concerns are being recognized,” Holder said during a daily afternoon briefing with the health unit and Middlesex County warden.

“This is money municipalities had been promised previously . . . (and) while these funds on their own do not address London’s $33 million shortfall, today’s announcement does give me hope,” Holder said, noting Trudeau called the move a “first step.”

The federal commitment announced Monday will speed up $2.2 billion in infrastructure funding, which is normally delivered to municipalities across Canada in two instalments a year, into one cash injection this month. For London, it amounts to $23 million in funding, Holder said.

His thanks to Ottawa came as advocates slammed the federal government for speeding up cash that already was promised and already accounted for in city hall budgets.

Guelph Mayor Cam Guthrie, chair of the Large Urban Mayor’s Caucus of Ontario – which brings together 29 big-city leaders across the province, including London – said the federal pledge “does nothing to address our operating losses.”

Municipalities are not legally allowed to run operating deficits.

“This announcement falls short of a meaningful, sustainable plan to support COVID-19 recovery in our cities,” he said in a statement.

The Federation of Canadian Municipalities, an advocacy group that has asked Ottawa for a bailout of more than $10 billion for cities and small municipalities across the country to help with the harsh financial impact of the pandemic, described it as a “modest, preliminary measure.”

But Trudeau highlighted Ottawa’s work with provincial and territorial governments to address concerns of municipalities, hard hit by the pandemic.

In London, public transit costs alone are pegged at $12 million. Millions in revenue also has been lost at RBC Place, the city-owned conference centre, and through reduced water consumption.

No request for funds has been made to Queen’s Park that compares to the FCM request of the federal government. But Holder said he’s in talks with provincial and federal representatives frequently to advocate for London and plead for help.

“I think the federal government made it really clear they couldn’t do this without the province,” Holder said. “As I would tell (provincial officials), the federal government’s made it totally clear that they’re not going this alone, so where are you?”

City council also will have to re-open the 2020-2023 budget to find savings and address the shortfalls created by COVID-19, he said. That budget includes $4 billion in new spending during the next four years, including millions for housing and homelessness investments, but was approved before the pandemic walloped London.