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Not all revenue sharing money will make it to municipal budgets

Premier of Saskatchewan Scott Moe announced at the Saskatchewan Urban Municipalities Association’s (SUMA) convention last week that the province municipalities will receive more than $10 million more in overall 2019-20 funding through provincial reve
Mayor Roy Ludwig
Mayor Roy Ludwig

Premier of Saskatchewan Scott Moe announced at the Saskatchewan Urban Municipalities Association’s (SUMA) convention last week that the province municipalities will receive more than $10 million more in overall 2019-20 funding through provincial revenue sharing. Yet, Estevan Mayor Roy Ludwig explained that not all of this money will go into municipalities’ budgets.

“We are getting about a four per cent increase although some of those moneys will be dedicated to economic endeavor that the government and SUMA are working on together. It will be less than that in the pockets of cities, towns, and villages, but overall it is an increase, so we are happy about that,” Ludwig said.

That means that some of the money coming towards municipal budgets through the revenue sharing program will be set aside for economic development programs for the province. SUMA and the province will have input into where that fund is spent. There are no exact numbers on the funding distribution, as well as on how much money will be kept for economic development. Ludwig underlined that an increase is good.

“This increase is appreciated and will be needed for our cities so that we continue to do the necessary work that we do within our community,” Ludwig said.

When Estevan’s share makes it to Energy City's budget, it’s more likely will go towards infrastructure.

The increase will bring the municipal revenue sharing program total to $251 million for this fiscal year. The announcement was made during the last SUMA annual general meeting that took place in Saskatoon, where municipal leaders could also discuss motions.

“Towns, villages and cities had the opportunity to discuss that for some time now. What all of these are they are recommendations. If they are carried they are recommendations to the province and SUMA sits down with the provincial counterpart, with the  (government relations) minister (Warren) Kaeding and they make recommendations on these motions that the government moved them forward,” the mayor said.

“Sometimes even SUMA wants some acted on, the government doesn’t necessarily act on them. Although, usually with SUMA’s blessing they try to move them forward,” Ludwig said.

A motion about cannabis excise tax made by the town of Aberdeen and SUMA board of directors was among the main focus points. It was also of particular interest for Estevan.

“Now we have a cannabis store in Estevan. The federal government has funded, I think they funded 50 per cent of the profits to the province, with the intention that the province will take 25 per cent of that and give to the municipalities, because of the extra costs of policing in each community and all of the associated costs that go with that,” Ludwig said.

However, municipalities haven’t seen any federal money yet. So far, the provincial government was holding on to all the money provided by the feds, not allowing the promised 25 per cent to come down to the municipalities.

“The province, they are saying they want to wait and take more time to see exactly what these (associated) costs will be, “ Ludwig said.

So SUMA delegates agreed that they will continue to advocate and push for it.

Seniors living was another important for Estevan topic discussed during the SUMA meeting.

“We feel that we needed a comprehensive strategy now when the demographics of our senior citizens are increasing,” Ludwig said.  “We have to spend more time discussing how we can help people in their golden years to get the most out of life, not just to compartmentalize them in a home somewhere and hide them away. We need a complete strategy on how we can make their life better.”

Another topic discussed was the reduction of plastic waste.

“It’s an environmental concern. Our oceans are filling up with plastics, it’s affecting the wildlife not only in the oceans but it impacts the whole food chain and it gets back to us as consumers,” Ludwig said.

So SUMA delegates agreed that it’s very important to work towards reducing the plastic waste in the environment and passed that motion to be further discussed with the provincial government.