The Department of Municipal Affairs announced they will be offering a one-time doubling Municipal Financial Capacity Grant to the tune of $30.5 million dollars, however, in arguably more important news they also announced plans to renegotiate the Service Exchange Agreement.
That agreement governs a significant portion of the funds doled out by the province as well as the responsibilities of towns and municipalities and as such changes to it will have a lasting impact on their ability to operate various services.
Municipal Affairs Minister John Lohr says both the one-time doubling and renegotiation were campaign promises made by the PC’s and as such he’s pleased to see them being met.
“The Service Exchange Agreement is from 1995, so there have been calls to update it for years now and once we complete that it should help municipalities significantly,” Lohr said.
Lohr says they are now gearing up for the renegotiation but as it is an extensive and impactful document he expects it may take a year or longer.
The Nova Scotia Federation of Municipalities (NSFM) is applauding the move and the impact it will have on local governments.
NSFM President Emily Luts explained, “One of the things we often hear from NSFM members is that in order to continue to offer quality services, they have to see an increase in access to revenue sources. We welcome the government’s commitment to discuss long-term solutions for sustainable municipal funding. In the meantime, doubling the Municipal Financial Capacity Grant will have a positive impact on those communities that currently have access to it.”
As for the one-time doubling that is designed to offer some relief to municipalities that are facing the particular challenges faced due to local road responsibilities and assessment bases.
That money is expected to be available to town and municipal governments early this fall.
