Lack Of Federal Funds Turns The Tap Off For Cast Iron

Initially seen as a major step forward for the Cast Iron Watermain Replacement Program the lack of federal funding for the program in 2020 has the City downgrading the amount of pipe which will be replaced in 2020 and potentially 2021.

In a report updating the City’s financial state the admission is made the lack of an expected $6.6 million in Federal Transit funding means unless other funds are found the expected $3.3 million in cast iron replacement work in 2020 and again in 2021 won’t be happening.

Initially the City had announced they were set to do $9 million worth of cast iron water main replacement in 2020 despite not having funding approved. The first sign of a glitch which could impact the proposed work happened in mid-February when the City had to apply for funding.

The City had initially expected to receive funds under the Investing In Canada Infrastructure Program (ICIP) but had not received funding after the program changed and funding had to be applied for.

The City was hoping to be approved for $9 million in cast iron water main replacement in both 2020 and 2021 with the help of grant funding of $3,300,000 each year. If the ICIP grant had been approved Federal Funding was 40 percent or $ 3.6 million, Provincial Funding was 33.33 percent or $2,999,700 and Municipal Funding was 26.67 percent or $2,400,300 on an annual basis each of the two years.

The lack of ICIP funding also impacted the High Service pump station forcing the City to find extra funding for the $16 million project. Council approved borrowing $10 million to make up the ICIP shortfall.

The only project to recive ICIP funding was the Moose Jaw Municipal Airport which received $1.2 million from the Federal government.

The Government of Canada invested $1.2 million in this project through the Rural and Northern Communities Infrastructure Stream (RNIS) of the Investing in Canada plan while the Government of Saskatchewan contributed $999,900. The City of Moose Jaw is contributing $500,100 and is responsible for any additional costs.

At the time Council approved the application for funding the airport expansion and upgrades, on the Moose Jaw Municipal Airport Authority’s behalf, Council was told the application would have no impact on other ICIP funding the City was applying for.