Municipalities across Ontario to Benefit from New $1.1 Billion Water Funding Agreement

TORONTO, Sept. 16, 2016 /CNW/ - A new federal / provincial agreement, announced Tuesday in Toronto, paves the way for at least $1.1 billion in funding for municipal water, wastewater and storm-water projects, right across Ontario.

The Government of Canada will provide $570 million (50%) of the funding. The Government of Ontario will provide $275 million (25%), and receiving municipalities will provide a total of at least $275 million (25%). In all, the agreement will facilitate about $1.1 billion in new investment. 

"This funding is great news for municipalities," said AMO President Lynn Dollin. "Building and maintaining water-related infrastructure is a challenging priority for communities large and small. This is exactly what we all need: three orders of government, working together, to provide predictable, formula-based funding."

Funding will be allocated to municipalities on a formula system based on the proportion of infrastructure that they have, and their economic conditions. A base allocation of $50,000 federal and $25,000 provincial funds will ensure that all municipalities benefit. Municipalities will have to propose how they intend to use the funds by October 31, 2016.

"Municipal drinking water, wastewater and storm water systems‎ ensure that the water we use and return to our lakes and rivers is clean," said Jeff Lehman, Chair of the Large Urban Mayors Caucus of Ontario. "This funding helps communities facing growing demand, pressures from climate change and aging infrastructure."

"This approach benefits smaller, rural municipalities, who don't have time and money to invest in uncertain application processes," said Ronald Holman, president of the Rural Ontario Municipal Association.  "Rural water, wastewater and storm water systems, which are so critical to safeguarding public health and the environment, must serve large, sparsely populated areas using limited financial resources."

The Clean Water and Wastewater Fund (CWWF) was announced in the 2016 federal budget. Federal funding can be used for up to 50% of eligible projects.  While projects are to be completed by March 2018, the federal Minister has the ability to accept some projects that are longer in length. The federal budget allocated 25% of the funds in 2019 to accommodate this possibility.

AMO is a non-profit organization representing almost all of Ontario's 444 municipal governments. AMO supports strong and effective municipal government in Ontario and promotes the value of municipal government as a vital and essential component of Ontario and Canada's political system.

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SOURCE Association of Municipalities of Ontario

Brian Lambie, AMO Media Contact, 416-729-5425, [email protected]