2026-01: Regional Cost Sharing
Year: 2026
Resolution
Whereas urban municipalities provide the majority of essential community services and recreation facilities in Saskatchewan, including community halls, arenas, fire halls, parks, and libraries, that are used extensively by residents of surrounding rural municipalities; and
Whereas the capital and operational costs of constructing, maintaining, insuring, and staffing these essential facilities, including the hosting of regional library branches within urban community buildings, are borne disproportionately by small urban municipalities while rural municipalities contribute inconsistently relative to their resident usage; and
Whereas rural municipalities often contribute to fire protection services, but the hosting urban municipality remains responsible for maintaining the fire hall, carrying insurance costs (vehicle, liability, and facility), and providing administrative and logistical support to the fire departments; and
Whereas the long-term sustainability of regional services is critical to economic development, public safety, learning and literacy, and quality of life for all Saskatchewan residents;
Therefore be it resolved that SUMA advocate the Government of Saskatchewan for a strengthened provincial framework that ensures fair financial participation from rural municipalities in support of regional community services by implementing the following:
1. Mandatory cost-sharing agreements for essential regional emergency services such as fire response, ensuring fair proportional contribution relative to service area and population served;
2. Provincial incentive programs that encourage and support collaboration on recreational and community-based services and facilities, including library hosting costs, through capital and operational funding opportunities; and
3. Provincial guidelines and tools that assist municipalities in structuring fair contribution models and resolving disputes in a timely and equitable manner.
Provincial Response
Dear Randy Goulden;
Thank you for your April 29, 2026 letter regarding resolutions passed at the 2026 Saskatchewan Urban Municipalities Association Convention.
Ministry of Government Relations' Response
- The ministry encourages neighbouring municipalities to discuss and address regional concerns through mutual agreements and partnerships.
- Moving to a provincially mandated system regarding regional cost sharing could potentially limit the ways that municipalities work together to reach regional goals. Instead, municipalities are encouraged to work together on matters of regional importance using the options available in the current legislative and funding framework.
- Forming a public utility board, creating a controlled corporation, entering into a service agreement, or negotiating a tax sharing agreement are all options that are currently available to municipalities wishing to collaborate on regional matters under the municipal Acts.
- The Planning and Development Act, 2007 also allows municipalities to enter into lntermunicipal Development Agreements, which empower two or more municipalities to work together on matters of mutual interest, including land use planning, infrastructure provision, recreation, and service delivery.
- Allocating funds from a municipality's dedicated lands account toward partnerships with neighbouring municipalities for regional recreational facilities provides valuable opportunities to expand local recreation, enhance service levels, and support shared community outcomes.
- An incentive program that encourages and supports collaboration already exists. The Targeted Sector Support program sets aside $1.5 million from the Municipal Revenue Sharing for initiatives that feature collaboration between communities. A group of municipalities could apply under the TSS for funding towards the cost of feasibility studies or other initiatives that support a future regional infrastructure solution, including recreational facilities.
- The Government of Saskatchewan also encourages regional partnerships when allocating funding grants. Federal-Provincial Funding Programs such as the Investing in Canada Infrastructure Program and Canada Housing Infrastructure Fund provided or will provide merit-based funding to municipalities, related not-for-profits and Indigenous recipients for infrastructure projects. During the internal provincial review, projects are prioritized if the project is part of an existing regional system or a new regional system.
Congratulations on another successful convention. I look forward to continued discussions with SUMA 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