REQUEST FOR DECISION
DATE: December 1, 2020 Report No. FIN-20-021
TO: Laurie Hurst, Chief Administrative Officer
FROM: Ian Irvine, Director of Financial Services
SUBJECT:
Title
COVID-19 Safe Restart Grant for Local Governments
End
RECOMMENDATION:
Recommendation
That Council receive Staff Report No. FIN-20-021 for information.
Body
RELEVANT POLICY:
Local Government Grant Regulation, s.36
Community Charter s.167
STRATEGIC RELEVANCE:
Build and Enhance Partnerships: work with governments, school districts and stakeholders to enhance relationships and advance issues impacting the community
BACKGROUND:
The federal and provincial governments recently announced the Canada-BC Safe Restart Agreement. The agreement consisted of several different funding programs to assist local governments with the impacts of the COVID-19 pandemic. $425 million was announced for direct grants to support local government as they deal with increased operating costs and lower revenues due to COVID-19 and ensure local governments can continue to deliver the services that taxpayers depend on.
The Township has now received a grant of $3,538,000 which is conditional and targeted for COVID-19 related response, support, and recovery. The initial outline that was provided describes eligible expenditures including:
• addressing revenue shortfalls;
• facility reopening and operating costs;
• emergency planning and response costs;
• bylaw enforcement and protective services like fire protection and police;
• computer and other electronic technology costs;
• services for vulnerable persons; and
• other related costs.
The Ministry has indicated that the Township will be required to report on the use of the grant funds. This will be done through our annual financial statement reporting until all funds have been utilized. This requirement will be completed by staff starting with the 2020 financial statements.
Given the uncertainty of the short and long term impacts of COVID-19 on the Township's operations, cash flows, and recovery, staff recommend a cautious and conservative approach for use of the grant funds. It's important not to commit too quickly as the longer term impacts on the Township and its residents and businesses is still unknown. Initial suggestions for how the funds may be allocated include:
• replenishing the surplus by making up for additional COVID-19 related costs (PPE, cleaning, signage, working virtually, etc.) incurred and lost revenue in 2020 where reimbursement is not expected through Emergency Management BC;
• support service levels and strategic priorities in 2021 through use of funds allocated during the budget process to cover COVID-19 related costs and initiatives; and
• maintain a significant portion in a statutory reserve fund to prepare for any longer term impacts on Township residents and businesses.
No decisions on these or other potential options are required at this time. Staff anticipate bringing a more detailed report on available options to a future Council meeting. The timing of this report will be in January to coincide with the fiscal year end and preparation of the 2021 budget information.
ISSUES:
1. Rationale for Selected Option
The intention of this report is to provide information regarding the existence and nature of the grant received. A separate report will be brought forward to discuss the potential uses of these funds once the Township’s year end financial position is clearer.
2. Organizational Implications
There are no organizational implications of this decision.
3. Financial Implications
The grant received by the Township is substantial and indicates a serious commitment and recognition from the senior governments that municipalities have a significant role in the ongoing pandemic response. It also recognizes the importance to our communities of maintaining local government services. This amount of funding should last the Township for multiple years, as we continue to navigate through this period of uncertainty.
4. Sustainability & Environmental Implications
There are no sustainability or environmental implications of this decision.
5. Communication & Engagement
There are no communication requirements at this time.
ALTERNATIVES:
That Council receive Staff Report No. FIN-20-021 for information.