Nearly $5 million in extra provincial funding could help city council complete projects it paused due to the pandemic, or eliminate the need to borrow money for two major projects.
Those were some of the ideas that council and city administration discussed during council’s May 25 regular meeting. The provincial government provided Moose Jaw with $4.8 million on May 15 under the resurrected Municipal Economic Enhancement Program (MEEP).
Projects, projects, projects
May 15 was a busy day for city hall, said city manager Jim Puffalt. Besides the MEEP funding, the deadline for the federal Investing in Canada Infrastructure Program (ICIP) closed, a program in which Moose Jaw is looking for $15 million for its reservoir program and $3.9 million for the outdoor pool.
Also, city hall learned it could use provincial transit funding for the cast iron program, its solar initiative, and to purchase smaller transit buses.
Many types of capital projects are eligible under MEEP, with council able to use MEEP to pay the municipal portion associated with other infrastructure programs, Puffalt explained. That is something to consider before council makes any decisions about using this funding.
There are three projects council could also bring back that it removed from the budget as part of the pandemic-related financial measures, he continued. Those projects include upgrades at Pla-Mor Palace ($109,000), the YMCA demolition ($288,000) and the Iron Bridge irrigation ($51,000).
City administration will report back to council by June about how the new funding could be applied, Puffalt remarked. It will ask councillors if they want to use the funding to pay for the municipal portion of the ICIP funding instead of borrowing money.
The municipality plans to borrow $3.9 million for the reservoir project, while it plans to apply a recreation levy and use MEEP funding to generate $1.014 million for its share of the outdoor pool.
Council discussion
“The recent windfall of federal and provincial funding is good news for Moose Jaw,” said Coun. Brian Swanson.
The MEEP funding is to be distributed over two years, since the program runs until March 2022, he pointed out. He wondered if that’s how city administration understood the program.
City hall will have to develop a spending plan and then present it to the provincial government, while there is the potential to receive some funding this year and next year, Puffalt replied. However, it’s too soon to say how much money Moose Jaw will receive in each of the next two years.
The program parameters are broad, which is why it will take a while for city administration to bring a report to council about how to spend this money, he added. It’s probably best to spend the money by next year since city hall can’t complete much construction between January and March 2022.
In whatever amount Moose Jaw receives the funding during the next two years, Swanson wanted to use that money to reduce council’s need to borrow money for its ICIP projects. While the pool is projected to cost $3.9 million, council doesn’t even have a cent invested for it yet. A past consultant’s report also suggested it could cost $7 million to build a new pool.
“I wouldn’t jump for joy for this if the federal government says it will approve (the pool) because then we would have to find $1.014 million,” he continued, adding he would prefer to use the money for the reservoir project and the cast iron replacement program instead.
Council then voted unanimously to receive and file the MEEP capital funding report.
The next regular council meeting is Monday, June 8.
