The Mayor of Portage la Prairie has mixed reviews on the impact the 2017 provincial budget will have on municipalities.

Mayor Irvine Ferris was on-hand at the Manitoba Legislature Tuesday as the Progressive Conservative government unveiled its $17-billion budget with an expected deficit of $779-million. A budget item of interest to many municipalities in the province: Municipal operating funding was maintained at 2016 levels in Budget 2017 -- something Ferris says surprised many local leaders.

"Prior to this I know there had been a lot of speculation when I talked with mayors and reeves from across Manitoba, that we understood the province is dealing with a huge deficit and certainly we were expecting some austerity," Ferris says. "To see our funding maintained at 2016 levels is probably a fairly positive outcome."

"...(At the same time) restricting funding at the 2016 levels does not recognize the inflationary pressure that we face as city, or that any municipality faces. Most things you go to do next year cost more than they did this year."

A 33 per cent increase in water related infrastructure -- including flood protection, drainage and other water control infrastructure -- an additional $2-million in Manitoba Water Services Board (MWSB) funding and a new basket funding model for infrastructure grants are other wins for municipalities Ferris points out in Budget 2017.

"The province is also committed to working with municipalities on infrastructure priorities and utilizing federal infrastructure investment," Ferris notes. "A lot of times the federal government will come out with certain funds that are available. The terms usually call for one-third (of total dollars) being match by the province and one-third by the municipality."

"Getting all those partners on board is important and the province is committed to that."

DRAWBACKS

Potential drawbacks Portage's Mayor points to: The lack of mention of a provincial Build Manitoba Fund for further infrastructure revitalization support and no provincial sale tax revenue set in the Municipal Taxation Funding Act.

"We recognize the province is facing a very large deficit. They had some tough choices to make," adds Ferris. "I think they used a very prudent, thoughtful, balanced approach to the budget. We appreciate the challenges that they face and I think they've done a pretty good job considering what they're dealing with."

COST DOWNLOADING

Another area of interest in the provincial budget for municipalities is cost-downloading or withdrawal of financial support on more specific needs. A recent example Portage la Prairie has dealt with is Dutch Elm Disease. The previous NDP government began relaying related costs for disease management and control onto municipalities.

"Our estimates from operations was about $100,000 onto the citizens of Portage that was previously picked up by the province (for Dutch Elm)," Ferris explains. "...These are concerns shared across the province and I don't have all the details yet (within the 2017 budget), but we were concerned with what's gone on before as far as downloading."