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NLIS 1
November 6, 2000
(Municipal and Provincial Affairs)

 

Minister announces $5 Million for the 
Newfoundland and Labrador Federation of Municipalities

Joan Marie Alyward, Minister of Municipal and Provincial Affairs, and Derm Flynn, President of the Newfoundland and Labrador Federation of Municipalities (NLFM), today reported on the 50th annual convention of the federation held over the weekend.

The theme of the convention was "Towns in Partnership" and both the minister and the president were pleased with the outcome. "The convention was very successful in that municipalities of all sizes were able to raise valid issues and network with others to see how they might improve services for their residents," said the minister. "Our department looks forward to continuing the good working relationship we have enjoyed with the federation. We have committed to a series of regional forums throughout the province to give the small towns a greater opportunity to discuss their needs and alternate funding arrangements."

"The weekend was a great success with a combination of a lot of important work being done and a nice balance of social activities to really make the 50th anniversary convention a special one," said Mr. Flynn. "The minister�s announcement of over $5 million for municipalities was certainly a welcome one at a time when there are so many competing priorities for government. This funding will go a long way to help municipalities which are in great need of financial help."

The minister said $3 million would be added to the current $22 million provided for the provincial Debt Relief Program. Throughout the province to date, 76 communities have improved their financial status through refinancing their long-term debt and 37 of those communities have received additional debt relief assistance. "This program has been very successful in the past and I am sure that this additional infusion of cash will continue the good work which has been ongoing under this program," said Mr. Flynn.

The minister also announced a one time allotment of $2 million to supplement this year�s Municipal Operating Grant (MOG) funding. "For this year only, this extra money will be divided up based on the size of the municipality and its existing operating grant," said the minister. "For towns with a population of less than 1,500, the Municipal Operating Grant will be increased by 20 per cent. For medium sized towns, with a population between 1,500 and 5,000, the MOG will be increased by 10 per cent, and for larger municipalities, the MOG will be increased by 5 per cent." The minister said this funding can be used based on municipal priorities and can be applied to small scale infrastructure, computer upgrading, equipment, or other requirements.

The minister further announced that $100,000 would be provided to the NLFM in recognition of its 50th anniversary and to celebrate the partnership between the federation and the department. The funding will be used as an awards program which rewards municipalities that foster partnerships by sharing services and maximizing efficiencies. The minister and Mr. Flynn said a steering committee has been formed by the department and the NLFM to establish criteria and an application process.

Media contact: Glenn Bruce, Communications, (709) 729-1983.

2000 11 06 1:40 p.m.


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