MFOA's First Report on the Financial Implications of the COVID-19 Pandemic




This report is the first of a series of papers that MFOA will release regarding the financial implications of the COVID-19 pandemic for municipalities and recommendations for support from other orders of government. The impact of COVID-19 on municipalities is constantly evolving, and as such, the current recommendations are based on information obtained by MFOA staff up to the end of April 2020. Future reports will reflect our latest understanding of impacts. A summary of recommendations is as follows:    

  • MFOA supports FCM’s recommendations to the federal government in principle
  • The Province establish a support grant to compensate municipalities for targeted net lost revenues resulting from the COVID-19 emergency. Targeted revenue streams include transit and recreation.
  • The provincial or federal government provide forgivable interest-free loans to municipalities to address revenue shortfalls of a temporal nature.
  • The Province establish an emergency cost recovery grant to compensate municipalities for increased costs directly related to the COVID-19 emergency.
  • The provincial and federal governments, under existing programs, maintain committed transfer payments to each municipality as planned for 2020-2022.
  • The Province extend statutory and non-statutory reporting deadlines: 1-year deferrals for new requirements and 6-month deferrals for existing reporting deadlines. Timelines should be reviewed in tandem with the easing of restrictions.
  • The Province continue to work closely with its municipal partner to learn “on the ground” lessons of the financial impacts of the pandemic and to plan for future recovery.


Thank you to those who provided input on the draft of the first report. For any questions or comments, please contact Shira Babins (shira@mfoa.on.ca) or Christine Duong (christine@mfoa.on.ca). Click here to visit MFOA's COVID-19 hub for the latest updates, resources, and recordings from past COVID-19 webinars.

 

MFOA's Submission to the Standing Committee on Finance and Economic Affairs

The Standing Committee on Finance and Economic Affairs have been tasked with analyzing the financial implications of the COVID-19 crisis on certain sectors of the economy, including the municipal sector. On July 13, 2020, MFOA's President Trevor Pinn and former President Nancy Taylor will speak on behalf of MFOA's members on the financial implications of the crisis. MFOA's recommendations draw on what was previously said in our first paper on the financial impacts of COVID-19 with some updated information. MFOA's letter to the Standing Committee on Finance and Economic Affairs can be found below.

 

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