New fund to boost municipalities’ finances

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This article was published 26/11/2024 (541 days ago), so information in it may no longer be current.

Municipalities across Manitoba, including Brandon, will get an additional $62 million funding shot in the arm over the next five years as part of the newly created One Manitoba Growth Revenue Fund.

Premier Wab Kinew made the announcement on Monday at the ongoing annual fall convention of the Association of Manitoba Municipalities (AMM) in Winnipeg.

“The provincial government is coming forward with something that’s never been done before — predictability and an escalator increase every single year on the operating grants for municipal leaders to decide how they can meet your needs,” he said. “That’s a first, that’s never happened before.”

Brandon Mayor Jeff Fawcett, who is attending the convention, said he is pleased with the announcement.

“This is good news, there’s no question,” Fawcett said. “And the most important piece is the fact that they’ve implemented it in a timely manner, January 1st, so that means this year’s budget,” said Fawcett during a phone interview with the Sun after the formal announcement.

The NDP government’s budget for 2024 included $221 million in unconditional funding to all municipalities, including a two per cent boost to the municipal operating grant to help municipalities deal with rising cost pressures.

The new growth revenue fund will be in addition to the operating grant.

“Last year, our government promised to treat municipalities like the true partners that they are and to respect the pressures they are under after years of freezes,” Kinew said in a news release. “This year, we are establishing a new fund to provide extra support for programs now and into the future. Together, we’re giving Manitobans reasons to hope with a plan that makes life better across our province.”

The funding model will be based on per capita, “so that small municipalities will not be ignored, their funding will be based on population,” a government spokesperson told the Sun.

Fawcett said he thought that was a “fair way” to allocate the funds, adding that doing “rough, rough math,” Brandon’s share could be “around $400,000,” in the first year.

“We probably won’t be buying anything, but it will be something that will actually reduce taxes and not add it to future budgets,” Fawcett said.

“We’ll see once it comes in and then let staff give their best ideas about the best way to utilize it for the residents, and then we’ll go from there.”

Hamiota Mayor Randy Lints is also attending the convention, and said the announcement is “good news overall.”

The population of his community is between 1,200 and 1,300 people.

“By the time you break the formula down — since it’s based on population — when you get to the smaller communities like us, it’s not going to be huge dollars, but we’ll take it,” Lints said.

Brandon city councillors Jason Splett (Ward 8), Tyson Tame (Ward 10) and Shaun Cameron (Ward 4) are also representing Brandon at the bi-annual convention, which draws nearly 700 delegates from 137 municipalities across the province.

Tame said he is “thankful for any and all assistance from the province, especially since many groups make funding requests to council right before budget deliberations.”

Cameron said any increase to municipal funding is a good step, adding it’s great to hear the government acknowledge municipalities “as equal partners.”

“We look forward to continuing to work with the province as an equal partner in the community,” Cameron said.

Fawcett said he agreed and added that he feels heard.

“It sends the message that discussions matter, that the province has been listening and working with us,” he said.

“I think the premier realizes it’s to the benefit of the province, not to have places like Brandon and Winnipeg with significant tax increases. Because when people are looking at Manitoba, they want to say these places are in good shape.”

The next step, added Fawcett, is to meet with Glen Simard, the province’s municipal and northern relations minister, and who is also the MLA for Brandon East.

Simard said recognizing the challenges of municipal partners and offering support to meet those challenges is what “true collaboration,” is all about.

“Our new growth revenue fund is focused on helping municipalities deliver for their communities and continuing to offer the quality services Manitobans expect,” Simard said in a news release, adding, “We’ve got your back.”

» mmcdougall@brandonsun.com, with files from the Winnipeg Free Press

» X: @enviromichele