Ontario’s fiscal watchdog says municipalities are facing billions in COVID-19-related expenses in 2021.
The Financial Accountability Officer makes those findings in a report released today.
He says if no further federal or provincial funding is provided, municipalities may have to raise taxes, cut services, or implement other cost-mitigation measures.
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Ontario’s unspent pandemic reserves grew to $12 billion by end of September: FAO
The FAO says the COVID-19 pandemic will cost municipalities $6.8 billion over two years.
He says most of the $4 billion in pandemic expenses accrued in 2020 are covered by funding provided by the federal and provincial governments.
But his report says more than $2.4 billion in pandemic expenses remain outstanding for 2021.