Capital Renewal Funding

This funding supports the renewal, upgrading and replacement of local infrastructure, such as roads, water and sewer systems and public buildings. The goal is to ensure that local government infrastructure remains safe, efficient and up to date.  

There is a base grant of $50,000 for all local governments. Additional funds are based on the value of local infrastructure and its ratio to the local government’s tax base. Payments will be made twice a year, by the end of January and July. 

Eligible projects include capital projects relating to the renewal and replacement of community infrastructure, including study, plannning and design costs, interm dept-financing charges attributable to an eligible capital project and the cost of capacity building.

Examples of eligible projects include:  

• facility improvements (e.g., fire halls, recreation centers)
• replacement of water and sewer infrastructure
• road upgrades and lifecycle extensions
• renewal of municipal fleets, like garbage and snowplow trucks

Examples of non-eligible projects include:  

• costs incurred before January 1, 2026
• new development (e.g., new water line extensions, building addition)
• routine repair and maintenance (e.g., fixing potholes)
• land purchases or legal fees 
• recoverable taxes

Local governments must meet certain terms and conditions to receive capital renewal funding. 

• Capital renewal plan: Submit a four-year plan listing projects that will be funded. The plan can be modified if conditions or decisions change.
• Audits: Regular independent financial audits may be conducted. 
• Interest and investment revenue: Any interest or investment revenue generated from the capital renewal funding will be used by local governments for capital projects and eligible expenses. 
• Combining funding: If permitted by other programs, local governments may combine capital renewal funding with other funding sources for eligible projects and expenses. 
• Asset disposal: When a local government sells or removes an asset funded by the capital renewal fund, it must reinvest its value (or the funded portion) into another eligible project that benefits the community.
• Banking funds: funding can be banked for up to four years. 

Local governments must provide reports to the Government of New Brunswick, including:  

• annual financial reports detailing how funds were used
• progress reports providing a four-year update on asset management plans
• a completion report outlining the objectives achieved after project completion
• state of infrastructure report submitted every four years

To promote transparency, local governments are required to publish their asset management and capital renewal plans for public access.

• Capital Renewal Plan Template 2026-2029 (Excel 122 KB)
• Bill 33 — An Act to Amend the Community Funding Act
  
• 2026 Fiscal Capacity Funding, Capital Renewal Funding, and Assessment for Taxation (PDF 135 KB)