MUNICIPALITIES BENEFIT FROM HISTORIC INCREASE TO REVENUE SHARING

The largest single-year increase in the history of the revenue sharing program means Saskatchewan municipalities will receive a total of $127.3 million in revenue sharing this year.

“Our government is committed to supporting all municipalities so that they can build communities that make our province the best place to live, work and build strong futures,” Government Relations Minister Harry Van Mulligen said.  “This unprecedented $30 million increase in revenue sharing announced in the recent provincial budget will help address the pressures that municipal leaders face as they strive to provide quality services and infrastructure to Saskatchewan people.”

Letters from the department of Government Relations have now been sent to urban and rural municipalities, detailing the amount the municipality will receive and the formula used to calculate that amount. 

Urban municipalities – cities, towns, villages and resort villages - will receive a total of $67.4 million dollars in unconditional revenue sharing.  That is an increase of $15.9 million (31 per cent) over last year.  More information regarding funding for urban municipalities, including community-specific grant amounts, is also available at www.municipal.gov.sk.ca/div/grants/urbanrev.html.

Cities will now all receive the same per capita support from the provincial government revenue sharing programs, which eliminates a previous inequity in the transfer amounts to Regina and Saskatoon.

Rural municipalities and organized hamlets will also receive $49.6 million in revenue sharing, an increase of $11.7 million (31 per cent).  That figure includes $38.7 million in unconditional grants, plus a variety of targeted spending.  More information, including community-specific grant amounts, is available at http://www.municipal.gov.sk.ca/div/grants/ruralrev.html.

Northern municipalities are receiving a total of $10.2 million in revenue sharing, an increase of $2.4 million (31 per cent) over last year.  Northern municipalities will initially receive a two per cent increase over last year’s grant.  The Province is consulting with the Saskatchewan Association of Northern Communities and Northern Revenue Sharing Trust Account Board on how best to distribute the rest of the increase, with a decision expected by July.

The provincial government is continuing to develop a new, policy-based approach to municipal operating funding, expected to be available by the fall of 2008.

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For more information, contact:

Gladys Wasylenchuk
Government Relations
Regina
Phone: 306-787-1370
Email: gwasylenchuk@gr.gov.sk.ca