(file photo/meadowlakeNOW Staff)

By Nicole Reis

MUNICIPAL REVENUE SHARING LUMP SUM

Province issues fast-track revenue sharing to local municipalities amid COVID-19 uncertainty

May 12, 2020 | 2:44 PM

In the coming year, the provincial government will distribute $278 million to municipalities in its Municipal Revenue Sharing (MRS) program. The commitment represents a $151 million increase since the 2007-08 fiscal year.

Last week, Government Relations Minister Lori Carr announced as part of the Government of Saskatchewan’s response to the COVID-19 pandemic, MRS will be fast tracked for the 2020-21 year.

In a statement issued to meadowlakeNOW City Manager Diana Burton said this is not an increase to funding as the city budgeted for the amount it is to receive. Instead of receiving two payments as predicted, the city will receive one lump sum.

“The impact of the pandemic on municipalities in a lot of cases is a cash flow one,” she said. “If we defer penalties [and thus due dates] for utilities and taxes, that means that the vast majority of the cash that the city takes in could be delayed. Receiving revenue sharing in one lump sum will help alleviate some of our cash flow issues.”

All MRS funds will be paid in full directly to all compliant Saskatchewan municipalities in June, rather than in installments throughout the year.

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“The Government of Saskatchewan is committed to ensuring that all municipalities in the province have the resources in place to navigate these challenging times,” Carr said in the statement. “This stable, consistent, no strings attached funding for municipalities can be invested in programs and services as the community sees fit.”

The announcement is in addition to the two-year, $2 billion economic stimulus investment for the economy which was unveiled May 6.

The stimulus plan includes $320 million for municipal infrastructure: $150 million through the new Municipal Economic Enhancement Program, $130 million through the Investing in Canada Infrastructure Program, and $46 million of targeted funding for municipal roads and airports.

In 2019, all Saskatchewan municipalities were asked to complete an online Declaration of Eligibility by January 15 in order to test the process for the new Municipal Revenue Sharing Grant Eligibility Requirements.

The ministry uses an online Declaration of Eligibility process to determine if municipalities have met the Eligibility Requirements for their Municipal Revenue Sharing grant.

For 2020-21, $133.208 million will be allocated to cities, $45.051 million to towns, villages and resort villages, $79.257 million or 28.5 per cent to rural municipalities, and $20.579 million to northern communities.

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nicole.reis@jpbg.ca

Twitter: @nicolereis7722