The bonus gas tax revenues for municipalities this year should be in Manitoba’s hands this week, according to the federal government.
A provincial government spokesman has assured that once received by the province, the cash will flow expeditiously to the municipalities, including the City of Winnipeg, which is to receive $43.9 million of the total $72 million due to Manitoba.
“We are anxious to see the funds in the City of Winnipeg’s account because $19.25 million worth of street work depends on the money being received,” MHCA President Chris Lorenc said. “We will work to see that the city moves quickly to award the tenders of the projects dependent on this transfer.”
The additional gas-tax funds were announced in the Trudeau government’s March 19 budget. The top-up doubles the revenues from the gas tax to flow from Ottawa to Canadian municipalities this year.
The $19.25 million partially makes up for a $40-million cut — the entire budget — to Winnipeg’s local street repairs this year, following a funding dispute over a provincial commitment for roads. The city says the province owes it $40 million in work that was completed in 2018; the province says it has made good on the entire amount owed under the former roads funding agreement.
The stand-off erased 53 local street projects — the entire program for 2019. The gas-tax revenue top-up will pay for 33 projects reinstated by council vote April 25, with news of the federal bonus this year.
“It’s critically important that the funds get into the awards process now so we can ensure the projects are off the ground and completed in this construction season,” Lorenc stressed. He noted the MHCA is grateful for the provincial undertaking to move the money along to the municipalities as quickly as possible.
Most of the remainder of the $43.9 million will go to the local and regional street renewal program next year, with some going to active transportation and transportation safety planning projects.