Municipal Affairs
March 23, 2007

Early Approvals Granted for Municipal Capital Works Programs

An early commitment of provincial funding of $36.2 million for municipal capital works for 2007-08 will improve services and modernize infrastructure in support of sustainable communities across Newfoundland and Labrador. In partnership with federal and municipal counterparts, the total value of capital works commitments for 2007-08 is $77.4 million. Additionally, the province has an annualized commitment of $14.2 million in support of the 2005-08 Multi-Year Capital Works Program.

"The early approval of municipal capital works funding will increase the effectiveness and efficiency of the program by providing an earlier start to the construction process," stated the Honourable Jack Byrne, Minister of Municipal Affairs. "The economic impact of municipal capital works programming provides significant benefit and allows municipalities the opportunity to enhance and improve services. Province-wide, up to 64,000 person weeks of direct or indirect and spin-off employment could be created."

Historically, the majority of funding has been directed toward water and sewer infrastructure. In light of increasing demands, government will begin to broaden investments in municipal infrastructure to address investment deficits in the areas of recreation, buildings and fire equipment. An increased emphasis will be placed on infrastructure where investments are required and can be supported by a business case analysis which rationalizes the need and the long-term sustainability of the infrastructure.

Wayne Ruth, president of the Newfoundland and Labrador Federation of Municipalities, is pleased with the early announcement of capital works funding. "We certainly welcome government�s move to allocate funds to support municipalities at an earlier date. This will provide an earlier start for construction and additional time for projects to be completed, which in turn supports better services for residents in municipalities throughout the province."

The department�s capital works commitment includes the Municipal Capital Works Program, Municipal Rural Infrastructure Fund Program, the Canada Strategic Infrastructure Fund Program II, Gas Tax Program, and the Multi-Year Capital Works Program, all of which are administered by the Department of Municipal Affairs. All programs are designed to support municipalities develop a wide range of municipal infrastructure which support continued growth and development of communities throughout Newfoundland and Labrador. The programs are cost-shared between federal, provincial and municipal partners.

"We will continue to examine and respond to infrastructure needs, while examining cost-effective solutions to address increasing infrastucture requirements for municipalities across Newfoundland and Labrador," added Minister Byrne.

The Department of Municipal Affairs is evaluating applications for municipal capital works, and funding commitments for specific projects will be announced in the near future.

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Media contact:
Heather MacLean
Director of Communications
Department of Municipal Affairs
709-729-1983, 690-2498
heathermaclean@gov.nl.ca

 

BACKGROUNDER

Municipal Infrastructure Development

The Department of Municipal Affairs administers the following programs to aid municipal governments in the development of major municipal infrastructure:

Municipal Capital Works (MCW)

The Municipal Capital Works Program provides support to municipalities to develop a wide range of municipal infrastructure and is cost-shared between the province and municipalities on a variable cost-shared basis depending upon the category of infrastructure and the cost-sharing ratio assigned to the municipality. In 2007-08 the Municipal Capital Works Program is valued at $36.2 million, which includes a provincial contribution of $22.2 million.

Municipal Rural Infrastructure Fund Program (MRIF)

The Municipal Rural Infrastructure Fund Program is a federal/provincial/municipal cost-shared program which provides a one-third federal contribution to eligible projects. The remaining two-thirds are cost-shared provincially/municipally and are subject to a variable cost-sharing ratio. The program contains a target requiring at least 60 per cent of the funding be targeted to green municipal infrastructure such as water, waste water, and solid waste. Other eligible investment targets may include local roads, cultural and recreation facilities, etc. In 2007-08, the Municipal Rural Infrastructure Fund Program is valued at $21 million with a provincial contribution of $9 million.

Canada Strategic Infrastructure Fund (CSIF)

The Canada Strategic Infrastructure Fund program helps support large municipal or provincial infrastructure priorities costing at least $10 million. It is anticipated these projects will be cost-shared on a one-third basis with the federal and municipal governments. The 2007-08 funding commitment is $6 million, $2 million of which is provincial.

Multi-Year Capital Works Program

Approximately $37 million in provincial funding has been allocated in support of the 2005-2008 Multi-Year Capital Works Program. The province has an annualized commitment of $14.2 million in support of this program with a matching amount from participating municipalities. This program was designed to fund larger scale infrastructure projects in larger communities that have the capacity to make a multi-year funding commitment. Fourteen municipalities have been approved for funding under this program.

2007 03 23                                                       2:15 p.m.
 


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