Remote, rural communities wait for details on stimulus spending
La Ronge Mayor Ron Woytowich is one of the province’s small community leaders waiting on new money for municipal infrastructure.
After the province announced $320 million for municipal infrastructure on Wednesday, Woytowich said he remained unsure how much would eventually arrive for communities like his.
When he heard the news, the Town of La Ronge was in budget talks, juggling holding tax rates with managing the crisis, he said.
“Quite frankly, the discussion was: what is going to happen after this crisis is over?” Woytowich said. “If governments are borrowing like crazy to pay for this, then sooner or later, we’re going to have to pay that back.”
Concerning the province’s extra funding for municipal infrastructure, he said he didn’t know how much La Ronge will receive, whether the money is for all municipalities, or what the town’s percentage will be.
He expressed hope that capital projects, like a new rink, could play a key role in the town’s economic recovery after the crisis, though that could be years away.
The town’s current rink was built in 1983 after country singer Johnny Cash helped raise funds to replace another that burned down in the late 1970s.
He said a stumbling block could be uncertainty over the government’s role. If the town has to contribute 50 per cent, he’s unsure if it would be affordable, and limits on borrowing could hinder the effort, he said.
The provincial support was nonetheless welcome for Saskatchewan Municipalities president Gordon Barnhart.
“We’ve been advocating for years for the development of a provincial infrastructure program, and we’re extremely pleased to see our provincial government implement one to help our economy recover in these challenging times,” he said.
As relief comes, Barnhart said on Monday that his members won’t be collecting rates until September, and likely won’t know the full impact of the pandemic as long as the crisis drags on.
Roy Orb, president of the Saskatchewan Association of Rural Municipalities, said some of the funding will likely reach its members, though he’s unsure how much. SARM has also asked the province to set up an interest-free fund, from which municipalities could borrow to help cover deferred taxes.
The Federation of Canadian Municipalities has also asked for $10 billion for local governments scrambling to recover.
Orb said assistance is a must as his members weather the crisis.
“There are needs and costs for our municipalities that are becoming very hard to manage.”