WELLINGTON COUNTY – Millions of dollars in COVID-19-related expenses have flowed through the county’s books in 2020, but local costs have been generally covered by contributions from upper levels of government, a new report indicates.
The report from treasurer Ken DeHart to county council members at a special budget meeting on Jan. 11 shows the county has incurred approximately $6.6 million in incremental costs due to COVID-19 in 2020.
However, DeHart noted, about $5 million of those dollars “were flow-through expenses,” whereby the county “received money from the province or feds and put it out into the community for those specific purposes.”
Shelter and motel costs to house the homeless ($2.1 million) and increased community supports for child care centres and housing providers (nearly $2 million) are among the leading flow-through expenditures, followed by pandemic pay for eligible workers ($915,000) and cleaning supplies and PPE ($600,000).
In addition, the county has experienced an estimated revenue loss of approximately $1 million due to COVID-19:
- $535,000 in lost user fees (child care, library/museum programming and event revenue, Ride Well passenger revenue, police record checks);
- $300,000 in court revenue due to closures;
- $100,000 drop in recyclable materials sales; and
- $55,000 in lost room and event rentals at county locations.
Measures taken early to mitigate pandemic impacts on the budget included:
- eliminating the hiring of most summer students and some seasonal staff;
- delayed hiring for new and vacant positions;
- lower costs from shutdowns and working from home (mileage, travel, conferences and training); and
- lower building and programing costs during service shutdowns.
The report noted the county received $4.5 million in emergency provincial funding to support additional impacts from COVID-19, including:
- $922,000 for long-term care;
- $200,000 for social housing;
- $570,000 in municipal infrastructure funding;
- $2.8 million in Safe Restart Funding (which can be carried over to 2021).
The county has also received $10.7 million in funding to support specific programs including:
- $833,000 to cover pandemic pay for long-term care and housing providers;
- $7.7 million in various housing programs to support the homeless and vulnerable populations; and
- $2.1 million in federal child care Safe Restart funding.
The report notes that about $760,000 in incremental expenditures have been identified in the draft 2021 budget to be funded by grants and subsidies from senior levels of government.
DeHart explained the county has a total of $5.3 million in funding received from senior levels of government that is not yet included in the 2021 budget.
“These dollars will be committed/spent in 2021,” the report states.
A total of $450,000 has also been received from senior levels of government that will be spent in the Children’s Early Years division the first quarter of 2021.
DeHart noted county staff have learned the Safe Restart funding can be used for additional categories, such as covering for lost revenues.
“County staff will utilize the funding to the maximum extent possible, which is likely to generate a larger surplus” for 2020 than previously anticipated, Dehart stated.
In November, treasury staff were projecting a surplus of between $1.7 million and $2.4 million.
“The upper levels of government have been very supportive to municipalities,” said DeHart.
