ST. LAWRENCE, NL – St. Lawrence Mayor Paul Pike is applauding government’s decision to amend municipal infrastructure policies to eliminate the requirement for municipalities to enter into limit of service agreements.
According to a release from the Department of Municipal Affairs and Environment, a limit of service agreement between the provincial government and a municipality defines the area within which municipal water, sewer and/or road infrastructure projects are eligible for cost-shared provincial funding under all programs administered by the department.
These agreements were previously required to be eligible for that cost-shared funding, according to the department.
Eddie Joyce, minister of Municipal Affairs and Environment, announced the amendment Nov. 4 at the Municipalities Newfoundland and Labrador (MNL) conference in Corner Brook.
Pike said the announcement is welcome news for the Town of St. Lawrence.
“I thought the biggest announcement at the conference was the idea of extending the limits of service, so that communities would be able to access capital works funding for areas outside the limits of service,” he said.
Pike explained council was looking at developing an area for residential development outside the town’s limits of service.
“Capital funding for this would bring down that cost by approximately 90 per cent,” he said.
“It helps not only the town of St. Lawrence, but communities like ours who are trying to expand and develop their communities because of industry moving in.”
Town of St. Lawrence had brought forth a resolution at last year’s conference asking the province to adjust the eligibility for funding to include necessary capital works expansions that are outside a municipality’s limit of service.
“For minister Joyce to take it … and this year make an announcement on it – we thought it was very positive not only for the town of St. Lawrence but the whole region and the province,” said Pike.
“Towns like St. Lawrence don’t have the money to be able to fully fund water and sewer to areas outside their municipal planning area, but this (amendment) allows them to do that for certain purposes.”