BARRHEAD - County of Barrhead councillors decided to use a portion of its Municipal Sustainability Initiative (MSI) to fund a bridge replacement that the municipality would have otherwise had to pay out of reserves.
On July 16, council instructed administration to submit applications for MSI and Local Government Fiscal Framework (LGFF) grants for the above-mentioned project and two road re-gravelling projects.
The province created MSI in 2007 to help municipalities with infrastructure deficits. LGFF replaces MSI funding, which officially ended last year.
It should be noted that the municipality has already received roughly $1.6 million in MSI and LGFF for the projects and included as part of the 2024 budget, but finance director Tamara Molzahn explained that much of it, $1.078 million, had been allocated for the revitalization of approximately eight kilometres of Naples Road in early March, and as such councillors need to reallocate the grant funding attached to the projects. The other project was the 2024 re-gravelling road schedule, estimated at just over $531,000.
Councillors cancelled the Naples Road reconstruction project because the municipality could not reach the necessary burrow agreements with nearby landowners for suitable construction materials, such as dirt.
Background
Molzahn said that in June 2022, the council approved three projects for just over $3.8 in MSI funding: the previously mentioned Naples Road project, the 2023 road re-gravelling schedule ($531,000), and the upgrading of the landfill access road ($2.194 million) in 2028.
"The reason is that Municipal Affairs asked us to reallocate our grant funding because MSI was ending up and being replaced by LGFF," she said.
Molzahn added that in late 2022, councillors approved the 2023 paving project list, which included paving Range Road 22 (Dunstable South) and Range Road 40, or Auto Wreckers Road, while cancelling the landfill access road paving project. It is also worth noting that the municipality received a Canada Community-Building Fund (CCBF) grant for both paving projects. The CCBF was formally known as the federal gas tax.
She added that the province's LGFF portal is now open for applications. The minimal threshold for MSI is five per cent of the 2023 allocation, or about $45,000, while for LGFF, it is 10 per cent, or roughly $119,000.
"For the [Canada Community-Building Fund grant], there is no threshold, but it is more restrictive in what we can use it for," Molzahn said.
Available MSI, LGFF and CBFF funding available
Molzahn said the municipality has about $4.1 million between the three infrastructure-related grants, including its 2024 yet-to-be-received allotments.
She also noted that the estimated total includes deferred revenue from previous years, adding that the municipality's remaining 2022 and 2023 MSI allotments must be spent by 2028.
"Municipal Affairs strongly recommends that projects be submitted as soon as possible and that all of [the MSI] be used as the province transitions fully to LGFF," Molzahn said.
Municipal Affairs has approved using MSI funds for the Naples Road construction project and is awaiting approval for the 2024 road re-gravelling schedule.
Mozahn noted that the municipality's Naples Road MSI application would be automatically cancelled when council approves other projects for submission.
On the Canada Community-Building Fund side, she said the county has yet to submit any projects for approval, but they should have about $1.16 million available, including an estimated $393,000 of to-be-announced.
Eligible CCBF projects on the county's 10-year capital plan include the Lac La Nonne sanitary sewer project and annual road and bridge reconstruction projects.
However, Molzahn said administration isn't recommending any CCBF projects now, but that may change after Lac Ste Anne County provides more information about the project's estimated costs later this year.
Potential options
Assuming Municipal Affairs accepts the county's 2024 road re-gravelling submission, Molzahn said the municipality has several options. The first is to proceed with the plan identified in the 2024 budget, replacing the Naples Road reconstruction project with projects roughly matching the same distance. Currently, council has approved two projects, with 1.6 kilometres of roadway to be selected.
She said the risk with this option is that the municipality may not receive the approvals for other road reconstruction projects in time to complete the work this year.
"The second option is to use the funding for projects where there is a greater certainty that the project will be completed in 2024 and is eligible [for MSI/LGFF funding], " Molzahn said.
One of the more than a dozen Molzahn outlined projects that meet those criteria is Bridge 70370 on Range Road 51.
The bridge has been on the municipality's list for replacement for two years, but the province has denied the county's Strategic Transportation Infrastructure Program (STIP) funding applications.
The province created STIP to help municipalities solve their infrastructure deficit, boost the economy, and create jobs as part of its response to the coronavirus. The program allows municipalities to receive 75 per cent of the funding for approved infrastructure projects.
Due to issues with the 1968 bridge, public works placed load restrictions on it in 2020.
The council opted to replace the structure using reserves to avoid further restrictions or potential closure. The 2024 capital budget includes $210,000 for the project, but it is now estimated at $126,000 after the project was tendered.
Molzahn's other options for the council to consider included decreasing the value of grant funds allocated for 2024, saving the funds for future road reconstruction projects, or selecting one or multiple projects eligible while increasing the value of grant funds.
Coun. Walter Preugschas and deputy reeve Marvin Schatz suggested increasing the road re-gravelling grant amount, allowing for more roads to be reconstructed or adding additional kilometres to the municipality's shoulder pull program.
Reeve Doug Drozd and Coun. Ron Kleinfeldt favoured using any unallocated MSI/LGFF funds towards replacing the bridge on Range Road 51.
Barry Kerton, TownandCountryToday.com
