Prince George has finally received notice that it's getting a chunk of change to help with its growing budget shortfall due to the COVID-19 pandemic.
In July 2020, the federal government announced an agreement with provinces and territories on a federal “safe economic restart” plan that would include targeted funding for municipalities.
In September, the province announced nearly $2 billion in joint federal and provincial spending to support local governments facing increased operating costs and revenue impacts due to COVID-19.
On Nov. 5, the city received confirmation from the Ministry of Municipal Affairs and Housing that the city will get $6,110,000 in funding under the COVID-19 Safe Restart Grant for Local Governments.
The city is currently facing a 2021 budget shortfall that is around $6.8 million.
“It was in response to a tremendous amount of work being done with the provincial government and the federal government,” said Mayor Lyn Hall on the funding announcement at last night’s council meeting (Nov. 9).
“We are very pleased to say we received this amount – it is certainly going to help us.”
Eligible costs for the grant funding include addressing revenue shortfalls, facility reopening and operating costs, emergency planning and response costs, bylaw enforcement and protective services, computer and other electronic technology costs, services for vulnerable persons and other related costs.
“The information that we did receive is that it has no strings attached to it,” added Hall, referencing the board eligible purposes for the funding.
“It leaves the opportunity for municipalities to utilize these funds as we best see fit and that was another push we had as municipalities to decide our own destiny on these dollars.”
As part of the grant funding program, the city will be required to report annually on the spending of grant funds until there are no funds remaining.
“It’s going to have a huge impact on our taxpayers, our businesses and our residents and I am so humbled that the province had transferred this money to us,” added Coun. Cori Ramsay.
This funding announcement is also timely, as the city enters into its 2021 budget process.
“The timing is very good in that the city is entering its budget process shortly so administration will be making recommendations on the use of these funds,” said acting City Manager Walter Babicz.
Prince George council will deliberate the 2021 draft budget in January.
