Infrastructure: Municipalities worry about losses.

There’s growing concern among B.C. municipalities that approximately $400 million in federal funding may be lost because of a failure between the federal and provincial governments to agree on suitable projects.

Last week the Union of B.C. Municipalities informed its membership that about 25 per cent of an estimated $520 million in federal infrastructure funding handed over to the B.C. government has been committed to provincial priorities such as highway and TransLink system improvements. The remainder is still in the province’s hands.

“The intent with the federal government was to make sure that at least 50 per cent of it went to municipal or local government projects,” said Salmon Arm Coun. Kevin Flynn, who sits on the UBCM executive. “Our understanding is the province of B.C. is one of only two provinces that will not sign anything formal that says 50 per cent of these funds they get from the federal government, will flow to local government.”

In January 2009, the federal government committed more than $4 billion in infrastructure stimulus funding, to be matched by the provinces, to help mitigate the effects of the economic recession. Municipalities were asked to apply for funds with “shovel-ready” projects that could start as quickly as possible.

In June, Sicamous Mayor Maclolm MacLeod attended the Federation of Canadian Municipalities convention where, he says, the big question for the feds on everyone’s mind was what’s happened to the funding.

“Everyone was complaining about the federal government not coming through with the stimulus funding… now it is the province that is at fault with matching funds,” said MacLeod, who still holds the feds accountable for not moving things along faster.

“You think they would see the way clear to get it to happen.”

Okanagan-Shuswap MP Colin Mayes, however, assures the federal government has lived up to its commitments and that the hold-up is indeed at the provincial level.

“The provincial government was great before the (provincial) election and after the election, one, they had to get reorganized and two, they found that their revenues were down sharper than expected,” said Mayes.

Adding to UBCM’s concern is a condition on the infrastructure funding that all projects be completed by March 31, 2011. After that day, said Mayes, the doors are shut.

“That’s why we were concerned – we kept telling the province we’ve got to get these projects rolling because some of them are going to take some time,” said Mayes. “So hopefully we can get on with it now and see that money roll out and see some projects for the area.”

Mayes indicated the Shuswap area can expect to see funding announcements in the near future. MacLeod is guessing sometime between Sept. 28 and Oct. 2, at the UBCM convention. Similar indications have yet to come from the province. Transportation and infrastructure minister Shirley Bond recently said the province is still negotiating with the federal government.

If the matched federal and provincial funds go to municipal projects, the province’s portion becomes part of the annual operating deficit. Premier Gordon Campbell has told the federal government that the province will live up to its commitment provided the funding can be divided between operating and capital funds.

If the B.C. government should have any infrastructure funding announcements in store for the UBCM convention, Flynn says he won’t be complaining, just so long as the money is making its way to communities as intended.

“In my opinion it would have been better to have it here when it was supposed to be,” said Flynn. “That’s why we were asked for shovel-ready projects. But if it eventually gets here we all benefit anyway.”