NORTHERN CAPITAL GRANTS PROGRAM RENEWED

Released on August 6, 2003

Northern communities will benefit from the extension of the Northern Capital Grants Program for five years from April 1, 2003 to March 31, 2008, with a 12 per cent overall increase in base funding.

A total of up to $8.3 million will be committed to the program out of the Northern Revenue Sharing Trust Account (NRSTA) over the five year period. This combines $6.8 million in incremental funding plus $1.5 million carried over from the previous program.

"Government recognizes the challenges northern municipalities face in developing their infrastructure," Northern Affairs Minister Buckley Belanger said, on behalf of Government Relations Minister Ron Osika. "The Northern Capital Grant Program assists northern communities in establishing adequate local infrastructure to support and enhance community development."

The extended program increases the per capita grant from $267 to $300, increases the minimum grant per community from $50,000 to $60,000 and allows up to 20 per cent of the grant allocation to be used on capital works that support economic development. There will be no carry over of unspent funds at the end of the five-year period.

The objective of the program is to assist northern municipalities and settlements to develop capital works (fixed assets) that will benefit the operation of the municipality and the residents. The grant provides capital funding to northern municipalities and settlements to construct or upgrade municipal buildings or to purchase municipal equipment. Since the start of the program, $24 million in funding has been provided for municipal offices and buildings, office equipment including computers, vehicles like garbage or fire trucks, streets and sidewalks, sewer and water works, or recreational facilities or equipment.

Each community decides its priorities with respect to local capital works projects. The grant covers up to 90 per cent of the cost of the capital work, to the maximum of the community's eligibility.

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For More Information, Contact:

Anna Arneson Government Relations and Aboriginal Affairs Regina Phone: (306)787-8008 Email: aarneson@graa.gov.sk.ca Cell: (306)533-2168