MUNICIPALITIES BENEFIT FROM HISTORIC GOVERNMENT INITIATIVES

The Government of Saskatchewan is fulfilling a mandate commitment by introducing the new Municipal Operating Grants (MOG) program to replace the former revenue sharing formula.

"This budget is a historic one because it helps municipalities do what they do best - meet the needs of the people they were elected to serve," Municipal Affairs Minister Bill Hutchinson said. "Our new Municipal Operating Grants program is just one of several significant budget initiatives of benefit to municipalities and property owners. The program will provide much needed operational assistance, and combined with the biggest education property tax cut in our history, shows that our government believes in the municipal sector."

The MOG program was arrived at after extensive consultations with Saskatchewan Urban Municipalities Association, Saskatchewan Association of Rural Municipalities, New North and the Northern Revenue Sharing Trust Account Management Board.

The program will provide $167 million with $107 million to urban municipalities; $48 million to rural municipalities and $12 million to northern communities. This is the equivalent of 90 per cent of one point of PST (from 2007-08 Public Accounts). In 2010-11 and subsequent years, the equivalent of 100 per cent of one point of PST will be provided, as reported in the most recent version of Public Accounts.

This budget also provides $75.8 million for municipal capital investment through a variety of programs including Building Canada Fund - Communities Component; Saskatchewan Infrastructure Growth Initiative; Urban Development Agreements; Municipal Rural Infrastructure Fund; Municipal Infrastructure Grants and Provincial Municipal Support.

In addition, the budget provides $2.9 million for Transit Assistance for the Disabled, $13 million for Grants in Lieu of taxes, $6.7 million for the Saskatchewan Assessment Management Agency, and $59.7 million in the Federal Gas Tax Program which reflects the flow-through of federal gas tax funding for municipalities.

Overall, this budget includes $266 million for municipal financial assistance in 2009-10 - a 39 per cent increase over the 2008-09 Budget.

"Premier Brad Wall promised to achieve fairness with municipalities in helping them keep Saskatchewan's economy strong and steady," Hutchinson said. "Today with this historic Municipal Operating Grant and our infrastructure investments, we are keeping that promise."

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For more information, contact:

Jeff Welke
Municipal Affairs
Regina
Phone: 306-787-6156
Email: jeff.welke@gov.sk.ca
Cell: 306-536-1185