Saskatchewan municipalities get $275M from province

Saskatchewan’s municipalities cashed in Monday.

Premier Scott Moe told delegates to the Municipalities of Saskatchewan meeting the provincial government is sharing $275 million in 2021-22 under the Municipal Revenue Sharing Program — the second-highest such total ever.

“This unconditional provincial funding for municipalities provides local leaders the flexibility and adaptability to invest in their community’s current key priorities,” Moe said in a media release.

“This stable and predictable source of revenue is more important than ever for communities as they meet the challenges of COVID-19.”

Moe also announced the government was putting an additional $3 million into the Urban Highway Connector Program (UHCP). Funding in the program, which is designed to improve conditions on highways in Saskatchewan’s smaller cities, rose to $10 million over two years.

Money for municipalities

The annual revenue-sharing program gives municipalities an amount based on three-quarters of one point of the provincial sales tax revenue collected from two years earlier.

Of the total in 2020-21, $1.5 million is to be invested in the Targeted Sector Support Initiative.

“The initiative supports municipal projects that advance priority areas, such as good governance, regional planning, and inter-community collaboration,” the government said in a media release. “The initiative is co-managed by the provincial government and municipal partners.”

Since 2007, the government has provided more than $3.4 billion in funding to municipalities.

Highway funding

The UHCP, which was created in 2008, offers money to urban municipalities for the maintenance and rehabilitation of highways within city limits that connect to the provincial network of highways.

The government said projects in Regina, Estevan, Yorkton and Lloydminster got dollars through the program in the 2020-21 budget year. Work in Prince Albert, Estevan, Meadow Lake, Lloydminster, Humboldt, North Battleford, Moose Jaw and Yorkton are on the UHCP’s radar for the coming year.

The government said changes were made to the program this year at the request of towns and cities.

As of April 1, the Ministry of Highways will take on 100 per cent of the maintenance and rehabilitation costs for urban connectors, cutting down on the number of municipalities asking for funding every year.

As well, changes are to be made to how Regina and Saskatoon get funding.

More to come.