‘COVID-19 is not going away:’ Tax group urges Georgina to refocus ‘frill’ capital projects

A list of carry-over capital projects to be included in Georgina’s 2021 draft budget on Oct. 21

Yorkregion.com
Oct. 14, 2020
Amanda Persico

It’s been more than six months of cancelled recreation programs, closed town facilities and postponed projects.

COVID-19 dominates the current narrative -- from home-schooling and working from home, to business closures and government benefits.

While the federal CERB program was recently changed, many Ontarians are still out of work or will not be returning to work as a result of the ongoing pandemic.

“COVID-19 is not going away,” said Sutton resident Gerry Bones.

Earlier this summer, the town tabled its mid-year capital project outlook in which more than half of the town’s capital projects planned and budgeted for this year have been delayed.

As Georgina looks to use 2021 as a catch-up year for capital projects, Bones is worried the town is not seeing the “canary in the coal mine” that is the current COVID-19 situation.

“The town isn’t adding, but they also aren’t cutting,” said Bones, a member of the Georgina Fair Tax Association.

The town should brace for reduced revenue coming from the residential and commercial tax base, Bones added, as the pandemic continues to force businesses to shut down and recreational facilities to remain closed.

“The town has to recognize what’s coming,” he said. “The town needs to adjust to the new normal and refocus its capital projects.”

According to the town’s mid-year capital project report, half of the town’s 107 capital projects planned for 2020 are delayed by more than a month, compared to 10 completed projects, 24 that are on track and 19 facing a minor delay of less than a month.

Some projects that are delayed include: the Pefferlaw Fire Station; Holmes Point public washrooms; Maskinonge pedestrian bridge; Sutton community park; upgrading library technology and furniture; and trail expansions and lighting.

There are a number of projects listed in the town’s report that could be put on hold, namely vehicle fleet replacements, new park designs and recreation items, Bones added.

“All of which are nice,” he said. “But we don’t need it right now. Those are frills. Let’s get by for another year. Don’t abandon these projects, just put them on hold.”

But it’s not as simple as hitting the pause button and resuming the project later. The town could face monetary penalties stopping a contract.

“An awarded contract cannot be stopped without penalty, generally,” said town chief administrative officer Dave Reddon. “If a project was only postponed and not cancelled, the funds in the reserve would stay allocated to the project.”

Not to mention, there are a number of design projects and major master plans, such as the Waterfront Parks Master Plan, Keswick Secondary Plan Review and the Corporate Sponsorship Strategy, that have also been delayed.

“Those burn off a lot of money,” Bones said. “It’s not realistic to pay consultants now. Pause it, put it on hold.”

Part of the delay in master planning is the ability to meet all the legislated public consultation requirements.

Consulting work can be easily stopped or postponed without incurring a penalty, Reddon confirmed, but the allocated funds will still be attached to the project.

Postponing any construction related project could increase costs for the town in the years to come, said the town’s treasurer and director of corporate services, Rob Wheater.

It comes down to the climbing price of materials and supplies.

Construction prices escalate to the tune of five to seven per cent each year, Wheater added.

“Construction prices escalate much faster than taxes,” he said.

And pushing a project off by a year could mean a three- to four-per-cent cost increase for the town. 

With many projects lagging behind, town staff are proposing 2021 to be a catch-up year, by limiting the number of new capital projects to help keep any 2021 budget increase to a minimum.

 

A list of carry-over and delayed capital projects is to be included in the town’s 2021 budget report.

As the draft 2021 budget is expected to drop during the Oct. 21 council meeting, Bones has his doubts.

“I look forward to a finalized figure, but I’m not optimistic,” he said. “I refuse to believe the town can’t find a little fat in the budget to keep things normal.”

For more information on the 2021 Town of Georgina budget, visit georgina.ca/budget.