Council Approves Application For Millions In Infrastructure Funding
If the City gets their wishes there could be a lot more infrastructure replacement and repair in the next couple of years thanks to a cost sharing program offered by the federal and provincial governments.
Things such as cast iron water main replacement, solar power, a new upgraded fluoridation system and even a new outdoor pool are on the City's wish list for federal and provincial cost sharing.
The Investing in Canada Infrastructure Program (ICIP) will provide more than $896 million in federal funding for all types of Saskatchewan infrastructure projects over 10 years until 2028.
Funding is available under four infrastructure streams - Green Infrastructure Stream, Community Infrastructure Stream, Culture and Recreation Infrastructure Stream, Public Transit and Rural and Northern Commuinties Infrastructure Stream.
At Monday evening's meeting of Council there were requests by Aministration to apply to ICIP for infrastructure programs which will cost the City millions to particiapate in but ultilmately save the City millions if approved.
The largest request was for the reservoir and pumphouse project under ICIP’s Green Infrastructure Stream for approval. The total cost of the project is $16 million. The Federal government would pay $6.4 million, the Province $5.33 milion and the City $4.26 million under the application.
The reservoir and pumphouse project entails replacing the the High Service pump station, including the construction of a new building with the installation of new process equipment, piping and valves and building systems.
Additional updates would include a natural gas fired backup generator and improvements to the outflow of the reservoirs.
“If funding is not successfully received for this project, it will be necessary for City Council to consider an alternative funding source, which City Administration would recommend in the borrowing of $11,732,800 to make up for the shortfall in grant funding,” the report stated.
Administration also requested Councl to approve applying for funding of $3.95 million to replace the present outdoor pool as well as mechanical under the Culture and Recreation Infrastructure Stream. If approved the Federal Government would pay $1.58 million, the Province $1.31 million and the City $1.05 million.
The 54 year old pool is harder each year to maintain as the mechanical components of the pool have reached their end of life cycle the report stated with the outdoor pool each year facing closure because of it, the report to Council stated.
Outdoor Pool Funding Proposal $3.95 million
Federal Government would pay $1.58 million
Province $1.31 million
City $1.05 million
If the funding is not approved the new outdoor pool would not proceed. If the project is approved the City’s share would still need to be found either through borrowing, self funding or reserves.
Both the High Service Pump Station as well as the outdoor pool projects were submitted in 2019 for ICIP funding but were not approved.
There were four priorities for funding to be applied for under the Public Transit Infrastructure Funding Stream:
a. Cast Iron Watermain Replacement Program
b. Fluoridation Equipment and Building Program
c. Solar Initiatives Program
d. Purchase of 3 Transit Buses.
Three Transit Bus Purchase $1.58 million
Federal government would pay $632,000
Province $526,614
City share $421,386
The City of Moose Jaw was informed over a year ago that it would receive its per capita share of Public Transit Infrastructure Funding under this program.
The details of that expected $15,225,125 in funding are: Federal Funding 40 percent or $ 6,090,050 Provincial Funding 33.33 percent or $5,074,534 Municipal Funding 26.67 percent or $4,060,541.
Changes to the program means the initial requirement that one-third of funding be dedicated to public transit is now relaxed allowing municipalities to direct funds to other priorities. However there is still the requirement to use a portion of the funds for a public transit initiative.
When the program was previously discussed by Council both Councillor Brian Swanson and Mayor Fraser Tolmie expressed their frustrations about the requirement.
SEE RELATED - City Expresses Interest But There Is A Catch
The City is hoping to be approved to do $9 milliion in cast iron water main replacement in both 2020 and 2021 with the help of grant funding of $3,300,000 each year. Federal Funding is 40 percent or $ 3.6 million, Provincial Funding is 33.33 percent or $2,999,700 and Municipal Funding is 26.67 percent or $2,400,300 on an annual basis each of the two years.
The City has anticipated receiving funds in 2020 and as such has set aside money for their share of the cast iron water main replacement program. Because the program will not announce what project funding is approved until at least three months after the March 31st application deadline the propsal is to do cast iron water main stages until the funding is anticipated to be approved.
Cast Iron Watermain Replacement $9 million
Federal government would pay $3.6 million
Province $2,999,700
City $2,400,300
Cost sharing for installing a new fluoridaton system, which was approved in the 2020 Budget, estimated to cost $1.2 milllion will be applied for.
If approved the Federal share is 40 percent or $480,000, Provincial Funding 33.33 percent or $399,960 and Municipal Funding 26.67 percent or 320,040 $ 1,200,000. The City’s portion of funding will come from the Waterworks Reserve.
Funding of a $1,225,125 Solar Initiative Program was approved in the 2020 Budget.
Federal Funding applied for is 40 percent or $490,050, Provincial Funding is 33.33 percent or $408,334 and the City’s share is 26.67 percent or $326,741.
The cost of the three transit buses, to be purchased in 2022, is estimated at $1.58 million.
The funding formula is Federal Funding 40 percent or $632,000, Provincial Funding is 33.33 or $526,614 and once again the City’s share is 26.67 percent or $421,386.
All projects are being applied for and the actual financing and whether or not they are in fact completed is based upon need, necessity and if they are approved for ICIP funding.
Council voted unanimously to allow Administration make the application.