September 09, 2002

Intergovernmental Affairs Minister Jean Friesen announced a $15.4 million grant to the City of Winnipeg today, representing the first two operating and capital grant payments for 2002-03.

The City of Winnipeg will receive $103.6 million in provincial funding in 2002-03 through Manitoba Intergovernmental Affairs, in addition to other program related support from provincial government departments.

The funding from the province provides financial flexibility for the city to deliver priority services in recreation and public safety, and address capital infrastructure requirements, while keeping property taxes affordable, Friesen said.

"Building a strong capital city and a good quality of life for all its citizens is a key priority of our government. This funding is intended to be flexible in recognition of the dynamic environment within which the city operates."

This year’s provincial funding includes three new allocations amounting to $4.4 million intended to support priority areas. A special allocation of $880,000 has been identified to support the extension of mosquito larviciding to a six-kilometre radius outside the city’s boundaries.

"The province is also delivering on its commitment to keep property taxes down through the recently announced 10 per cent reduction to the Education Support Levy on residential properties," said Friesen. "This is in addition to the property tax savings provided over 2000 and 2001 through increases to the provincial property tax credit."

Almost $1.2 million is available as a special allocation to support agreed upon priority capital projects for which funding is not available under other provincial capital support programs. This funding brings total provincial support for city capital projects, including residential street repair work, to almost $20.9 million.

Another $47.3 million--a shared portion of income and corporate tax revenue, which is unique in Canada--and $8.1 million in VLT grant payments reflect the province's commitment to strengthen the City of Winnipeg, Friesen said.

In addition to this direct funding support to the City of Winnipeg, the province's Urban Development Initiatives fund will provide a total of $18.9 million for 2002-03 to support economic development activities in Winnipeg. Through the Neighbourhoods Alive! Initiative, the province is also providing about $2.7 million in 2002-03 for community driven revitalization of Winnipeg’s neighbourhoods in need, as well $14 million over five years to the Building Communities Initiative for neighbourhood infrastructure.

"It is one of our highest priorities to work as a partner with the city on all major civic issues," said Friesen. "As an example, we have made a commitment, with the full participation of the City of Winnipeg, to renewing the legislative framework guiding the city's operations, to enable the city to address the current reality and challenges faced by large urban centres."

Support to the City of Winnipeg and associated agencies from the province totals more than $140 million yearly, and includes funding to Destination Winnipeg and the Winnipeg Convention Centre. The province’s investment in revitalizing downtown Winnipeg includes the Neighbourhoods Alive! Initiative, support for the new Red River Community College downtown campus, the True North entertainment complex, Waterfront Drive and the Millennium Library.

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