MANITOULIN—The reading of last week’s federal budget offered good news for many, including municipalities with the announcement of $120 billion in infrastructure spending over 10 years.
The first phase of infrastructure funding includes $11.9 billion in spending to take place over five years, effective immediately, with $3.4 billion committed to support upgrading and improving public transit systems over three years; $5 billion over five years for water, wastewater and green infrastructure projects; and $3.4 billion over the next five years to support social infrastructure, including affordable housing and child care.
The Liberal government also announced money in the 2016 budget to assist municipalities with asset management in the form of a new $50 million capacity building fund that would support best practices guides to better inform municipalities on caring for core infrastructure assets, as well as a $3 billion announcement in municipal infrastructure funding via the Gas Tax Fund and the Goods and Services Tax Rebate for Municipalities. The budget also includes $9 billion in spending under the New Building Canada Fund’s Provincial-Territorial Infrastructure Component. Remaining funds from older federal infrastructure programs will also be transferred to municipalities.
Lastly, the Liberal government also announced a change from 1/3 federal funding to 50 percent.
“Any time the senior level of government is willing to fund in-the-ground projects, it’s a good thing,” said Assiginack CAO Alton Hobbs, “but we can’t continue to do one-third, one-third, one-third projects,” he added. “Small municipalities can’t afford to pick up one-third of the cost. It’s nice that the feds can do that (offer 50 percent), but if the province can’t do that…”
“Over the last eight years, a lot of municipalities have gone into debt to deal with infrastructure,” Mr. Hobbs continued. “It’s all well and good while the interest rates are low.”
He noted that all of the major projects undertaken by Assiginack in recent years have been administered by the province. “If their (the province’s) share isn’t there, it’s going to be costly for us.”
Mr. Hobbs said that Assiginack did not have any shovel ready projects ready for infrastructure funding applications.
In Burpee and Mills, clerk Bonnie Bailey said that in her preliminary look at the budget, there were no municipal projects that fit the infrastructure criteria.
“We have no water, wastewater or transit,” she said, “but we plan to investigate a little further.”
“It doesn’t affect us in these parts,” Gordon/Barrie Island clerk Carrie Lewis said of the budget. “Our roads are our biggest expense and we’re looking for funds to expand storage for public works. We’re hopeful.”
Billings Mayor Austin Hunt said his municipality has a couple of shovel ready projects, including the waterfront redevelopment project, and hopes it fits into one of the government funding silos. “The announcements so far are fairly vague,” Mayor Hunt said.
In the Northeast Town, CAO Dave Williamson said he was pleased to say the municipality has six shovel ready projects just waiting for funding.
“We’re happy to see the federal government providing specifically for municipal infrastructure,” he told The Expositor. “Support for the federal government Gas Tax Fund is critical.”
Mr. Williamson noted the lagoon expansion project as well as the replacement of cast iron water pipes, which are in excess of 60 years-old, as two of the projects the municipality will be seeking funding for.
“We’re ready and set to get those applications in,” he added.
It is expected that the tab for the spend heavy budget will come in with a $29.4 billion deficit for the first fiscal year.
