June 01, 2016

2016-17 Budget Reaffirms Government's Strong Commitment to Municipalities

Record funding for municipal revenue sharing highlights the $406.3 million in direct government support to Saskatchewan’s municipalities in the 2016-17 Provincial Budget.

The overall funding represents an increase of $56.7 million or 16.2 per cent from the 2015-16 Budget and an increase of $164.4 million or 67.9 per cent from the 2007-08 Budget.

“Municipal governments provide critical front-line services to Saskatchewan citizens and are our partners in ensuring that we keep our province and its economy strong,” Government Relations Minister Jim Reiter said.  “In what is a very tough budget year, I am pleased that we have still been able to deliver the major funding that municipalities need to invest in their communities and their infrastructure.”

The municipal revenue sharing figure, announced earlier, is based on the formula of one percentage point of Provincial Sales Tax (PST) revenue.  A record $271.6 million is being provided to municipalities in municipal revenue sharing in 2016-17.  That’s up $6.4 million or 2.4 per cent from last year’s Budget and up $144.4 million or 113.5 per cent from the 2007-08 Budget.

Urban revenue sharing for all cities, towns, villages and resort villages will amount to $174.6 million in 2016-17.  Revenue sharing for rural municipalities, which includes organized hamlets, will total $76.7 million, and northern municipalities will receive just under $20.3 million this fiscal year.

Saskatoon, the province’s largest city, will receive more than $48.5 million and Regina will receive just under $42.2 million in municipal revenue sharing.  Revenue sharing totals for individual municipalities can be viewed at www.saskatchewan.ca/government/municipal-administration/funding-finances-and-asset-management/funding/view-municipal-revenue-sharing-figures.

The Budget also provides $83.8 million in provincial support to municipal infrastructure through various programs.
Highlights include:

-$21.4 million from the Ministry of Government Relations for provincial support under the New Building Canada Fund;
-$23.7 million from the Ministry of Highways and Infrastructure for rural roads through the municipal roads strategy ($16 million) and the urban connector program ($7.7 million);
-$25 million from the Ministry of Parks, Culture and Sport for the Regina stadium project; and
-$10 million from the Ministry of Government Relations for the Saskatoon North Commuter Bridge.

The Budget also provides $50.8 million in other funding to municipalities from ministries, including grants for such services and facilities as libraries, policing, urban parks and transit assistance.