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Red Deer gets $50 million from feds, province to keep people working

More paving projects are planned for next summer

The City of Red Deer is getting $50 million in federal and provincial stimulus dollars for new projects to keep people working during the pandemic.

The money is “certainly welcome,” said Dean Krejci, chief financial officer for the city.

He added there’s so much pressure on the capital budget, “this will help fund some projects that might not have gone ahead.”

The City of Red Deer is receiving $12 million from the province’s $500-million stimulus program for infrastructure projects that will spur the economy.

And $38 million has been promised Red Deer from the federal Investing in Canada program for new infrastructure.

Krejci said city administrators are still deciding which projects to propose for the Ottawa program, which has flexible terms and could cover upgrades, retrofits and fire and flood resiliency projects.

The City of Red Deer rejigged its transit system this fall, so two proposed covered terminals at the south and north ends of the city might qualify for some of this funding.

“We’re still thinking about that. It’s under consideration,” added Krejci.

The federal government will review submitted project applications this fall. Those that are approved must use the allotted money by the end of 2021.

The provincial stimulus funding has the same deadline, but less flexible terms. Krejci said the recommendation is the $12 million received be spent on road upgrade projects and paving.

“Normally, we contract that work out,” he added, noting that the provincial grant must be spent to create private-sector employment. Paving projects that are approved this fall will have to be started next spring.

City council will discuss the 2021 capital budget in November.

The $42-million expansion and upgrade of the G.H. Dawe Recreation Centre will be on the agenda. Krejci said a federal grant to cover 40 per cent of the costs was recently approved, while a provincial grant for 33 per cent of costs was green lighted a few years ago.

But council must still decide whether it can afford the municipal portion of the project cost.