Ottawa promises flexibility when it comes to transit cash

The Trudeau government has pledged not to take "a cookie-cutter approach" to doling out cash for municipal infrastructure and will not strictly enforce eligibility requirements for new projects such as rapid-transit corridors.

Federal Infrastructure Minister Amarjeet Sohi said Thursday Ottawa will be flexible when it comes to requests from Canadian cities to access nearly $11 billion earmarked for new amenities such as transitways and sewage-treatment upgrades.

"Your federal government is not here to tell municipalities what to do and how to build infrastructure," Sohi said in Winnipeg following a gathering of 20 big-city mayors at RBC Convention Centre.

"We're here as partners. We're here as supporters of their local needs and we will work with them to ensure that whatever their needs are and whatever flexibility they need in order to fulfill the expectations of their citizens."

Earlier in the day, Edmonton Mayor Don Iveson — who chairs the big-city mayors' caucus of the Federation of Canadian Municipalities — expressed concerns there could be too many strings attached to a Trudeau government promise to dole new infrastructure funds.

At budget time in March, federal Finance Minister Bill Morneau announced $11 billion in short-term infrastructure cash for Canadian municipalities and another $49 billion in longer-term funding.

The short-term funding includes $3 billion for public transit over the next three years, including $80 million earmarked for Manitoba. Winnipeg Transit officials were told that funding may only apply to projects that would be finished by 2018.

The strict enforcement of that condition would disqualify the East Transitway, which remains in the early planning stages, from being eligible for the short-term funding.

Sohi said Ottawa is prepared to be flexible and allow some project funding to be broken up in two phases. Planning for rapid transit should be eligible for federal funds, he said

"The City of Winnipeg will get its share and that share will come very soon," said Sohi, adding Ottawa will determine the eligibility criteria for the remaining $49 billion in infrastructure funds before the end of 2016. "We're committed to working with Mayor Bowman and all the other mayors."

Earlier this week, Winnipeg Transit director Dave Wardrop said he would explore whether the $80 million worth of transit funds promised for the city could be spent on bus purchases if it could not be spent on transit corridors.

Bowman was not prepared to put that idea entirely to rest. "We'll see," he said.

Thursday's big-city mayors' meeting preceded a three-day Federation of Canadian Municipalities conference that starts on Friday. Prime Minister Justin Trudeau is slated to address about 2,000 Canadian mayors, city councillors and bureaucrats at the convention centre at 9 a.m.