Communities in Transition Funding

As part of the Municipal Revenue Sharing program, $700,000 will be provided to the CIT Capital Grant Program each fiscal year.

The intention of the CIT Capital Grant program is to accommodate the needs of Saskatchewan communities that assume financial liabilities related to municipal restructuring, i.e. when a village dissolves into an RM and becomes an unorganized hamlet or special services area. The program has built-in flexibility to meet these needs, as different situations may require unique solutions.

RMs may apply for approval of infrastructure-related project(s), feasibility studies and administration costs only once and within 24 months following restructuring.

Government Relations contacts RMs that are eligible to apply for funding.

The CIT Capital Grant Program provides funding for three types of projects:

• Infrastructure
  This portion of the program provides financial assistance to establish more sustainable, cost-effective service provisions in those RMs that assume financial liabilities related to environmental-based physical infrastructure. These infrastructure issues are often detrimental to the safety and health of communities and their residents.
• Feasibility Studies and Administrative Costs
  The CIT Capital Grant Program also provides funding for eligible feasibility and administrative costs associated with municipal restructuring. This was previously funded through the Municipal Restructuring Fund that was managed by the Saskatchewan Association of Rural Municipalities (SARM) and funded by the province.
• Strategic initiatives
  The province may approve strategic initiatives, consistent with The Municipal Grants Regulations, in the case that CIT Capital Grant Program funding remains unspent at the end of a fiscal year. Funding was provided to SARM every fiscal year since 2009-10 for initiatives that will benefit all or several RMs throughout the province. SARM is responsible for the administration of these funds.

When a village dissolves into an RM and becomes an unorganized hamlet or special services area, the province discontinues Municipal Revenue Sharing payments to that village. Instead, an annual grant payment is made under the CIT Operating Grant Program. This grant is based on the Municipal Revenue Sharing payment paid to the former village in the fiscal year in which it was dissolved into RM. This payment is made for a maximum of 10 years, commencing the fiscal year following the fiscal year in which the municipality dissolved.

Eligible RMs are contacted by the Ministry of Government Relations and are provided a brief one-page application that they are required to complete for each of the 10 years they are eligible to receive the CIT Operating Grant.

Funding for the CIT Operating Grant Program comes from the urban revenue sharing pool, but is paid to the RM on behalf of the unorganized hamlet or special services area.