Budget 2013 Supports the Growth and Development of Municipalities

As announced in Budget 2013: A Sound Plan, A Secure Future, the Provincial Government is investing in Municipal Operating Grants and capital works programs which will build sustainable and secure communities across the province. In addition, discussions will begin on a review of the provincial-municipal fiscal framework.

“This government is committed to making sound investments to grow and develop our municipalities,” said the Honourable Kevin O’Brien, Minister of Municipal Affairs. “The Provincial Government has listened to Municipalities Newfoundland and Labrador (MNL) and our municipalities and made some important changes under this budget which will help to build prosperous communities.”

Budget 2013 includes a commitment to maintain Municipal Operating Grants (MOGs) at existing funding levels for communities under 11,000 residents for 2013 and will provide $22 million to fund MOGs in 2014.

“We are really pleased to see the ongoing commitment to the MOGs,” said Bob Codner, Mayor of Torbay. “This funding is important for our ongoing operations and will allow us to continue to deliver the best services possible for our residents.”

In addition, $25 million has been identified to fund a new capital works program for the seven municipalities in the province with populations greater than 11,000.

“MNL is looking forward to working closely with the Department of Municipal Affairs on a review of the fiscal framework,” said Churence Rogers, President of Municipalities Newfoundland and Labrador. “These discussions will build on the changes to the MOGs and new capital works program announced in the provincial budget.”

Initial discussions between the Department of Municipal Affairs and Municipalities Newfoundland and Labrador are expected to begin within the next month.

“With this budget, we are delivering support for our municipalities like never before,” said Minister O’Brien. “We will now work closely with our stakeholders including MNL to review the fiscal framework to ensure that our communities continue to grow and flourish.”

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Photo: Municipal leaders listen to Kevin O’Brien, Minister of Municipal Affairs, as he outlines Budget 2013 support for towns and communities - April 2, 2013.

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Backgrounder
Continued Investments in Towns and Communities

Budget 2013: A Sound Plan, A Secure Future provides continued funding to support towns and communities across Newfoundland and Labrador. Those investments include:

• A commitment to maintain Municipal Operating Grants at existing funding levels for communities under 11,000 residents for the remainder of 2013;
• $22 million to support a new Municipal Operating Grant formula for communities under 11,000 residents effective January 1, 2014. This formula will ensure that no municipality will receive less funding than their current level and most will see an increase;
• $25 million committed to support the development of a new capital works program for the seven municipalities in the province with populations greater than 11,000 which will no longer receive Municipal Operating Grants. These are St. John’s, Conception Bay South, Mount Pearl, Paradise, Corner Brook, Gander, and Grand Falls-Windsor;
• The Provincial Government will also begin discussions with key stakeholders including Municipalities Newfoundland and Labrador on a review of the provincial-municipal fiscal framework to ensure that it is sustainable and fair for all municipalities in the province; and,
• Ongoing funding for the second year of a $130 million capital works program. This investment will continue to fund important infrastructure projects across the province.

2013 04 02                            10:45 a.m.