WINNIPEG – A renewed federal funding plan will see $713 million flow to Manitoba municipalities for infrastructure spending over the next ten years.
Officials announced the renewed federal Gas Tax Fund Friday, adding that it will increase by 2% each year to account for inflation.
It was welcome news for Winnipeg mayor Sam Katz, who has long lobbied Ottawa for a bigger share of the Gas Tax Fund. This year, Manitoba municipalities will see about $65 million in funding, with the lion’s share – about $40.5 million – going to Winnipeg.
The cash is intended for infrastructure projects like roads, bridges and transit. Under the new deal recreation projects are also included.
Despite the new funding, Katz says a property tax increase put in place to help pay for infrastructure will remain in place – saying even the new federal money falls far short of what is needed to fix the city’s crumbling roads.
Katz says the gas tax funding will not go toward the next phase of Winnipeg’s rapid transit project.