Vision _2022_08_17

"$56"-*5 4r/&84 DERECHO, DAYCARES CAUSING CITY DEFICIT

JOSEPH COPPOLINO joseph.coppolino@eap.on.ca

The second quarter budget forecast presented to council shows the City of Clarence-Rockland could end the year with a nearly $1 million deficit. While the administration noted an expected surplus in corporate revenue and expenses, city council and administrative costs (largely thanks to changes in ope- ration due to factors owing to COVID-19), reduced daycare revenue, costs from the 2021 cyberattack, and the aftermath of the May windstorm will put the city into a deficit of $936,460. Each quarter, the budget and finance department present to council a forecast of the city’s financials come the fiscal year-end of December 31. The report comparing the annual budget with actual spending up to June 30 was presented to city council on August 3. “It is safe to say that we will not have additional money to reinvest in debt repay- ment next year, and no additional money for roads,” Councillor André Lalonde said during the meeting. “Unfortunately, this year there are circumstances we can’t control.” The forecast of a deficit comes not long after the city reported a need for substantial investment in the municipal infrastructure, including roads, sewers and waterlines. Frédéric Desnoyers, Director of Finance and Asset Management, noted the $750,000 deficit from the windstorm would

Clarence-Rockland prévoit un déficit budgétaire important pour 2022. Les efforts de redressement après la tempête de vent derecho de mai et le nombre limité d’inscriptions dans les garderies en raison de la pandémie en sont les principaux responsables, selon les responsables de la ville. - photo Joseph Coppolino

be minimized should the city’s application to the provincial Municipal Disaster Recovery Assistance (MDRA) relief program be accep- ted. Desnoyers is confident that with the MDRA relief the cost of the storm recovery will be reduced to approximately $200,000, bringing the total forecasted deficit to around $400,000.

Ontario law prohibits municipalities from running budget deficits. Clarence-Rockland’s forecasted deficit would thus be funded using the Tax Stabilization Reserve or by increasing taxes the following year. “If we have a deficit at year-end, we need to fund it,” said Desnoyers. “Right now, we have enough in the reserve fund to cover the

deficit, and on September 1 we are starting a new year for the daycares. So, we’ll have a better estimate in our next report regarding daycare costs and revenue.” Council approved the submission of the MDRA application during council’s August 3 committee of the whole meeting.

CHARRON PILON SAUVÉ, s.r.l./LLP Avocats et Notaires / Barristers & Solicitors

Avec nous depuis 2016 • With us since 2016 AVIS DE RETRAITE • RETIREMENT NOTICE Avocat hautement respecté depuis 1983, Pierre Charron est cofondateur et copropriétaire de Charron Pilon Sauvé depuis 2016. Pierre a été pour plusieurs un mentor incroyable, plein de savoir et d’intégrité. Son impact restera dans la communauté pour des générations à venir. Toute l’équipe s’unit pour te dire merci. Nous savons que nous ne trouverons jamais personne qui puisse t’arriver à la cheville. – Highly respected lawyer since 1983, Pierre Charron is co-founder and co-owner of Charron Pilon Sauvé since 2016. Pierre was, to many, an amazing mentor, full of knowledge and integrity. His impact will stay with the community for generations to come. We know how much of a challenge it will be to find someone as devoted as you. Thank you for inspiring us!

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