Communities in Transition Funding
An updated Program Guide and application will be added to this page shortly along with a new pre-approval application.
With recent changes to The Municipal Grants Regulations, the Communities in Transition (CIT) Grant Program will be funded from the total Municipal Revenue Sharing (MRS) allocation, beginning in the 2026-27 fiscal year.
The CIT Grant Program provides financial assistance directly to municipalities that have restructured. This includes municipalities that have merged to form one municipal government (i.e. a town and a rural municipality forming a municipal district, neighbouring urban municipalities merging to form one urban municipality). It can also include the dissolution of one municipality into another (i.e. a village is dissolved and becomes part of the surrounding rural municipality).
The CIT Program is split into two separate grant programs: the CIT Capital Grant Program and the CIT Operating Grant Program.
1. Capital Grants
As part of the MRS program, $1.5 million will be provided to the CIT Capital Grant Program each fiscal year.
The intention of the CIT Capital Grant program is to accommodate the needs of Saskatchewan communities that assume financial liabilities related to municipal restructuring. The program has built-in flexibility to meet these needs, as different situations may require unique solutions.
The CIT Capital Grant Program provides funding for three types of projects:
- Infrastructure
Provides financial assistance to establish more sustainable, cost-effective service provisions in those municipalities that assume financial liabilities related to environmental-based physical infrastructure. These infrastructure issues are often detrimental to the safety and health of communities and their residents. - Feasibility Studies and Administrative Costs
Provides funding for eligible feasibility and administrative costs associated with municipal restructuring. - Strategic Initiatives
Each fiscal year, the Government of Saskatchewan will allocate $300,000 in capital funding to the Saskatchewan Association of Rural Municipalities ($150,000) and the Saskatchewan Urban Municipalities Association ($150,000) for projects that provide benefits to the broader municipal sector.
Municipalities that intend to restructure can apply to receive pre-approval up to 12 months before the restructuring date. Pre-approved applications cannot begin incurring costs until on or after the restructuring date and the initial application is approved.
Once the restructuring has taken place, municipalities can submit their application for funding 24 months following restructuring date.
Examples of approved infrastructure projects, administrative costs and strategic initiatives are available in the Communities in Transition Progress Report.
2. Operating Grants
When a municipality dissolves and restructures into another municipality, MRS payments to the dissolved municipality are discontinued. Instead, an annual grant payment is made to the receiving municipality under the CIT Operating Grant Program. This grant is based on the MRS payment paid to the dissolved municipality in the fiscal year in which it was dissolved. This payment is made for a maximum of 10 years, commencing the fiscal year following the fiscal year in which the municipality dissolved.
Funding for the CIT Operating Grant Program is paid to the receiving municipality.
Eligible municipalities are provided a brief one-page application to complete for each of the 10 years they are eligible to receive the CIT Operating Grant.