Executive Council
Municipal Affairs and Environment
October 5, 2018

Premier Ball Announces New Cost Share Ratios for Municipal Infrastructure Projects

The Provincial Government is adjusting the cost share ratios for new municipal infrastructure projects to make it easier for communities to construct roads and build community centres via the Investing in Canada Plan.

Yesterday at the opening ceremonies for the Municipalities Newfoundland and Labrador Trade Show and Convention, the Honourable Dwight Ball, Premier of Newfoundland and Labrador, announced the new cost share ratios which will lower the municipal share for municipal roads and community centres to 33 per cent of the total eligible cost under the Investing in Canada Plan. Previously, the municipal share for roads was 50 per cent and the municipal share for community centres was 40 per cent.

As an example of how this change helps communities, under previous ratios, a $600,000 roads project would have required a $300,000 commitment from a community. Under the new ratios for the Investing in Canada Plan, the community only has to contribute $200,000.

A call for applications for municipal infrastructure projects will be issued on October 15, and the new cost share ratios will be applied to proposals for funding. More information about the cost share ratios is provided in the backgrounder below.

On September 10, 2018, Premier Ball announced that the Provincial Government will be leveraging more than $555 million in federal funding over the next decade for community infrastructure projects under the Investing in Canada Plan. The plan will see the Provincial and Federal Governments make unprecedented investments in public transit, green infrastructure, recreational, cultural, and community infrastructure, as well as rural and northern communities.

Through The Way Forward, the Provincial Government is taking action to strengthen the province’s economic foundation, improve efficiency, and deliver better services and better outcomes for residents. The Way Forward outlines all actions the Provincial Government is taking to achieve a strong, diversified province with a high standard of living, and can be viewed at thewayforward.gov.nl.ca.

Quotes
“We have heard the call from communities and local governments for better cost share ratios for municipal roads and community centres, and we listened. Through our collaborative relationship with the Federal Government, we are pleased to have been able to lower cost shares under the Investing in Canada Plan, and now municipalities will have more funds to invest in making their communities better places to live and work.”
Honourable Dwight Ball
Premier of Newfoundland and Labrador

“The cost share ratios continue to align with government’s priorities of strengthening municipal infrastructure, providing better access to quality water and wastewater systems; and now under these new ratios for the Investing in Canada Plan, municipalities will be better able to initiate projects that improve transportation networks and provide places for communities to gather and work together.”
Honourable Andrew Parsons
Minister of Municipal Affairs and Environment

“Our members called on the Provincial Government to work with Municipalities Newfoundland and Labrador on more affordable ways for municipalities to invest in roads. This announcement responds to that call and allows many of our members to get on with the important work of building their communities.”
Tony Keats
President, Municipalities Newfoundland and Labrador

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Learn More

Investing in Canada Plan

The Way Forward

Budget 2018 – Safe and Sustainable CommunitiesPDF Icon

Investing in Canada - Canada’s long-term infrastructure plan external link icon

Follow us on Twitter: @GovNLexternal link iconand @MAE_GovNL external link icon

Media contacts
Michelle Cannizzaro
Office of the Premier
709-729-3960
michellecannizzaro@gov.nl.ca

Lynn Robinson
Municipal Affairs and Environment
709-729-5449, 691-9466
lynnrobinson@gov.nl.ca

Gail Woodfine
Municipalities Newfoundland and Labrador
709-753-6820
gwoodfine@municipalnl.ca

BACKGROUNDER

Municipal cost-share ratios for new Investing in Canada Plan projects

Funding Stream

Population/ Other Criteria

Federal Share

Provincial Share

Municipal Share

Public Transit

Includes improved capacity, quality or access to existing public transit networks

New construction /expansion

40.00%

33.33%

26.67%

Public transit rehabilitation

50.00%

33.33%

16.67%

Green Infrastructure**

Includes climate change mitigation; adaption, resilience, disaster mitigation; and environmental quality sub streams

Less than 3,000

40.00%

50.00%

10.00%

3,000 to 7,000

40.00%

40.00%

20.00%

Greater than 7,000

40.00%

30.00%

30.00%

Community, Culture and Recreation

Includes increased access to and/or quality of cultural, recreational and/or community infrastructure

All population bands

33.33%

33.33%

33.33%

Rural and Northern Communities

Includes improved and more reliable road, air , and marine infrastructure, improved food security, improved broadband connectivity, more efficient and/or reliable energy and potential projects under other streams

Less than 100,000

33.33%

33.33%

33.33%

The new ratios apply to the federal Investing in Canada Plan. For provincial municipal infrastructure programs, existing ratios continue to apply. Regional projects continue to be eligible for 10% reduction in municipal share under all programs.

**Green Infrastructure includes:

  • Climate Change Mitigation (increased energy efficiency of buildings, capacity to manage more renewable energy, access to clean energy transportation)
  • Adaptation, Resilience, Disaster Mitigation (increased structural and/or natural capacity to adapt to climate change impacts and/or extreme weather events)
  • Environmental Quality (increased access to potable water, treatment/management of wastewater/stormwater, and reducing/remediating soil and/or air pollutants)

2018 10 05                              9:10 a.m.