CLIFFORD – The Town of Minto’s allocation of funding through the Safe Restart Agreement, a federal/provincial initiative, will effectively balance out the town’s currently projected 2020 operating deficit.
The Safe Restart Agreement funding is aimed at helping municipalities continue delivering critical public services despite COVID-19 pandemic impacts. Details of the program announced on Aug. 12 indicate Minto will receive $241,600.
A second quarter financial update from treasurer Gordon Duff presented at the Aug. 11 council meeting estimates the town is facing projected shortfall of about $243,000.
Duff told council that direct pandemic-related expenses tracked by the town are estimated at about $75,000 to $80,000.
The report notes that while an unfavourable year-end variance of approximately $317,000 is forecast for tax-supported budgets, for non-tax supported budgets a favourable year-end variance of approximately $74,000 is projected. Based on all operating results as at June 30, the town is forecasting a unfavourable year-end variance of approximately $243,000.
Included in the forecast deficit are direct and indirect Covid-19 related expenditures and revenue losses of combing for an impact of approximately $256,000 for such items as the purchase of personal protection equipment and lost facility rentals and program fees..
“That’s where the hit is, in facilities and recreation,” said Duff.
“I’m glad we opened our pools and (other facilities), it’s definitely a community service and I think it’s worthwhile. And certainly it’s cheaper not to do things, but that’s not why we’re here,” the treasurer added
“In the satellite facilities and the programs, I found that in a lot of cases the (reduced) expenses offset the lost revenue – so not too bad a hit there,” Duff noted.
The report points out that earlier than now anticipated return to normal operations could reduce the forecasted deficit, while further delays to normal operations could result in an increase. Any surplus or deficit at year-end will transferred to or from reserves.
“We know there’s going to be some challenges,” said Duff, adding, “So far I think it can be covered by the reserves.”
The report indicates local taxpayers are making their payments thorugh the pandemic. At the end of the second quarter, the town has received 96% of the anticipated tax payments of just over $7 million.
At the meeting, held the day before the announcement of the Safe Restart Funding, Mayor George Bridge expressed confidence upper tier governments would come through with strong support for municipalities. He credited the working of municipal organizations such as the Federation of Canadian Municipalities (FCM) and the Association of Municipalities (AMO) of Ontario with making the case for support.
“I’m happy that FCM and AMO … worked hard at that, to get that out to the governments. They realize they need to help us out with this because, as you can see, there’s nothing we can do about IT. We have less revenue and we have more expenses and we have expenses based on the fact that we had to spend more to keep open and do what we’re doing,” Bridge stated.
Council approved a motion to receive the report as information.
