The federal government budget released Tuesday had some good news for Canadian municipalities.
Yorkton Mayor Bob Maloney said the Liberal government announced an additional $2.2 billion “to top up the federal gas tax fund.”
The City of Yorkton has received roughly $900,000 through the program, the funds having to be ear marked for capital projects.
“This year they’re going to double it to more like $1.8 million,” said Maloney.
The additional funding is significant considering the City was looking to borrow $3 million for road work on 2019.
“It will cut down on the amount of money we have to borrow,” said Maloney. “… It is no small sum…. For us it’s a windfall. We weren’t expecting it.”
Maloney said the money is available to all municipalities who take the time to apply based on capital project expenditures.
As another example of the impact the additional dollars will have, Maloney noted the ‘shave and pave’ project on Broadway Street is a million dollar investment, roughly what the additional funding is.
The money is however not ongoing.
“It is a one-time thing is my understanding,” said Maloney.
There is also new money in the Federation of Canadian Municipalities Green Municipal Fund, said Maloney. The Mayor noted the City owns housing units that could be eligible for funding to install new energy efficient windows, adding insulation and similar improvements.
Maloney also noted an announced $6 billion for new initiatives around rural broadband could have an impact locally. The money is to be invested over the next 10 years.
While the new programming is welcome, Maloney did temper his enthusiasm noting that the projected $19 billion deficit is unacceptable after the Liberal government had “promised Canadians a balanced budget.”
