Grant Funding for Small Communities

NCLGA Rating
Honourable Mention


Endorsed by the NCLGA Membership - Defeated by the UBCM Membership


WHEREAS the current grant programs provided by the Federal and Provincial Governments require that local governments provide 1/3 of the funding for particular grant programs;

AND WHEREAS the rural communities under 2000 population, which are dependent on residential taxation, are struggling to meet the 1/3 portion of the funding:

THEREFORE BE IT RESOLVED that the NCLGA and UBCM petition the Federal and Provincial Governments to remove the 1/3 portion of the funding for rural communities under 2000 population and to have the Federal and Provincial Governments provide 50% each for the approved projects with no funding required by these rural communities.

Additional Information

UBCM comments:

The UBCM membership has not previously considered a resolution requesting the federal and provincial governments not to require communities with a population under 2,000 to provide 1/3 funding to qualify for certain grant programs; nor have members considered a resolution requesting that the federal and provincial governments each provide 50% funding for approved projects undertaken by such small communities.

However, members endorsed resolution 2004-A7, which requested in part that the Municipal Rural Infrastructure Fund (MRIF) be structured to reduce the one-third share requirement for local governments with low fiscal capability. Local governments with populations under 2,000 could be considered to have low fiscal capability.

In its response to the 2004 resolution, the Province expressed willingness to consider the request during negotiation of the proposed MRIF Agreement. Extending a caveat, the Province did point out the necessity of obtaining federal agreement to drop the 1/3 requirement, otherwise permitting some communities to contribute less than 1/3 would result in other communities having to contribute more than 1/3.