Winnipeg, MB - an agreement between the City of Winnipeg and the Province of Manitoba offsets a 2015 Budget plan to raise transit fares by five cents over and above inflationary increases, and helps pave the way to fund the second stage of Winnipeg’s southwest rapid transit corridor.
“I want to thank the Province of Manitoba for their ongoing collaboration and willingness to work with us to fund the construction of the second stage of rapid transit,” said Mayor Brian Bowman. “This willingness to work together on creative and innovative funding models is encouraging, and I look forward to continued collaboration.”
“Our government understands the importance of investing in affordable public transit in Winnipeg”, said Drew Caldwell, Minister of Municipal Government. “We have amended our transit funding agreement with the City to allow for an additional annual provincial contribution of $1.7 million which will help keep transit fares affordable and support the modernization and renewal of the bus fleet, including a new focus on electric buses.”
Through negotiations with the Province of Manitoba, the provincial government proposed an alternative to a previously proposed five cent increase to transit fares, above annual inflationary increases, to fund a portion of the City of Winnipeg’s annual servicing payment for the second stage of rapid transit.
Under the existing Transit Funding Agreement, eligible transit expenses are cost shared on a 50-50 basis between the City of Winnipeg and the Province of Manitoba.
Through a modification of this Agreement, the City of Winnipeg will now be able to claim as cost-shareable expenses transfers of up to $3.4 million to the Bus Replacement Reserve for bus purchases. This results in an additional $1.7 million of funding to be received by the City of Winnipeg annually from the provincial government and offsets a previously identified need to increase bus fares by five cents.