2025-19 Sustainable Infrastructure Funding for Municipalities
Year: 2025
Resolution
Whereas municipalities in Saskatchewan are responsible for maintaining essential public infrastructure, including roads, water systems, wastewater treatment facilities, and public buildings, which require significant investment to remain safe, resilient, and efficient; and
Whereas municipalities are at the forefront of addressing infrastructure and climate-related challenges, yet they lack the financial and technical resources needed to implement sustainable, long-term solutions. Sustainable infrastructure funding will help municipalities modernize public assets, reduce emissions, and improve resilience to future challenges; and
Whereas aging infrastructure, increasing population demands, and climate-related pressures have placed a growing financial burden on municipalities, requiring them to balance essential services with limited financial resources and unpredictable grant funding; and
Whereas the Ministry of Environment and the Government of Canada have established climate and sustainability targets that require municipalities to invest in energy-efficient infrastructure, renewable energy projects, and climate-resilient developments; and
Whereas existing funding programs such as the Investing in Canada Infrastructure Program (ICIP) and the Canada Community-Building Fund (CCBF) provide important resources but are often oversubscribed, complex, and insufficient to meet local infrastructure needs.
Therefore be it resolved that SUMA advocate the Government of Saskatchewan and Government of Canada to:
- Establish a dedicated, long-term municipal sustainable infrastructure funding program that provides predictable, multi-year funding for urban municipalities to support projects such as green buildings, sustainable transportation systems, water conservation infrastructure, and renewable energy integration.
- Expand eligibility for existing infrastructure programs to ensure urban municipalities have access to funding for climate resilience projects, disaster mitigation infrastructure, and emerging sustainability technologies that reduce long-term operational costs and environmental impacts.
- Streamline provincial and federal infrastructure grant application processes to reduce administrative burdens on municipalities and ensure equitable access to funding, particularly for small and mid-sized urban centers.
- Prioritize municipal-led infrastructure projects in government funding allocations to ensure that urban municipalities receive adequate support for critical community projects that contribute to long-term economic and environmental sustainability.
Provincial Response
Dear Randy Goulden,
Thank you for your May 1, 2025, letter regarding resolutions passed at the Saskatchewan Urban Municipalities Association Convention.
Re: 2025-19: Sustainable Infrastructure for Municipalities
Canada Community-Building Fund
- CCBF is a federal program which was established in 2005 to provide predictable, long-term, stable funding for municipalities to help them build and revitalize their local public infrastructure.
- The Ministry of Government Relations (GR) administers the CCBF program on behalf of Housing, Infrastructure and Communities Canada. The federal grant is provided upfront, twice per year, allowing municipalities to pool, bank, and borrow against this funding.
- Since 2005, the program has contributed more than $1.17 billion towards more than 5,700 municipal infrastructure investment projects within 19 eligible categories across Saskatchewan, among which the CCBF funding includes investments in:
- Community energy systems to meet energy needs through sustainable practices such as utilizing green building sources or high-efficiency co-generation methods
- Local roads and bridges to support the construction, renewal, or improvement of essentiaI infrastructure
- Public transit to enhance efficiency, accessibility, and overall quality of public transit systems
- Drinking water to enhance water conservation, collection, treatment, and distribution systems
- Resilience which is an expanded category built on the previous disaster mitigation category to support assets that increase a community1s capacity to withstand, respond to, and rapidly recover from damage and disruptions caused by changing climate conditions or other natural disasters
- Culture, tourism, sport, and recreation facilities, among other eligible categories
- Aligning with Canada1s approach for the distribution of the CCBF funding to provinces and territories, Saskatchewan municipalities have been receiving CCBF funding on a per capita basis and could prioritize their infrastructure investments within 19 eligible categories.
- With the CCBF program being renewed for the next ten years, from 2024 to 2034, municipalities will continue to receive CCBF on a per capita basis, with the introduction of a minimum of $2,000 in funding to small municipalities that are estimated to receive less than $2,000 based on their population count. 22 urban municipalities had their allocation increased to $2,000 because of this change.
- The federal CCBF is indexed at two per cent per year and applied in $100 million increments. In 2024-25, municipal allocations were $65.7 million. In 2025-26, municipal allocations will increase by $2.8 million to $68.5 million, including:
- Urban municipalities received $53.9 million in 2024-25 and will receive $56.2 million in 2025-26, which is 82 per cent of the total annual municipal CCBF allocation. Out of these funds, cities received $42.1 million and other urban municipalities received $11.8 million in 2024-25 and will receive $43.9 million and $12.3 million respectively in 2025-26.
- Since CCBF is a federal grant program, the province has a limited influence on the parameters of the program, including the amount of CCBF funding allocated to Saskatchewan, eligible categories, and reporting requirements.
- While Canada previously indicated the intent to work towards a seamless transition between the expired and renewed CCBF agreements, the renewed 2024 agreement has increased reporting requirements. The province remains responsible for annual reporting on corresponding municipal activities through the project list, financial audited report, and the outcomes report with a newly added housing report and housing narrative on program-level housing outcomes. Non-compliance with federal reporting requirements may impact the timely transfer of the CCBF funding.
- GR has been working to incorporate new federal reporting requirements into the existing municipal reporting structure where possible.
Municipal Revenue Sharing
- Each year the Government of Saskatchewan provides unconditional funding to municipalities under the Municipal Revenue Sharing program. In 2025-26, more than $361 million in no strings-attached funding will be provided to municipalities.
Canada Housing Infrastructure Fund
- Canada Housing Infrastructure Fund (CHIF) is a federal initiative aimed at upgrading infrastructure related to drinking water, wastewater, stormwater, and solid waste management systems.
- Unlike previous programs, there are two delivery mechanisms for the program, Direct Delivery and a Provincial/Territorial (PT) Agreement Stream.
- The Direct Delivery Stream includes $1 billion over eight years for urgent needs, delivered directly to municipalities. The intake for this stream is currently open.
- The PT Stream includes $5 billion over ten years for bilateral agreements.
- As with the ICIP, the Government of Saskatchewan has committed to partnering with Housing, Infrastructure and Communities Canada to deliver CHIF.
- Saskatchewan's portion of CHIF in the PT Stream is estimated at $187.9 million in federal funding.
- The estimated provincial matching contribution is $156.5 million.
- On April 22, 2025, it was announced that eligible Saskatchewan communities were invited to submit applications for funding through the PT stream of the CHIF, with applications due by May 20.
- The next intake for CHIF funding applications will begin in mid-September for all eligible Saskatchewan municipalities. As information becomes available, GR will be in contact with municipalities through email communications andsaskchewan.ca/chif.
Congratulations on another successful convention. I look forward to continuing our work together and future discussions on areas of mutual interest.
Sincerely,
Eric Schmalz
Minister of Government Relations
Minister Responsible for First Nations, Metis, and Northern Affairs
Minister Responsible for Provincial Capital Commission
