Last week was a good one for local leaders looking for new funding from the provincial government.

The McGuinty government announced a further $1.1 billion in infrastructure funding for municipalities across the province. The announcement was made at the Association of Municipalities Ontario conference in Ottawa last week.

The new money comes from the provincial surplus. Premier Dalton McGuinty promised any surplus over $600 million would flow directly to municipalities for infrastructure needs.

From the new pot of money the Municipality of Meaford is receiving $790,499, the Municipality of Grey Highlands get $684,502, the Town of The Blue Mountains is getting $492,798 and Grey County will receive $2,120,225.

Local leaders were pleased to be receiving the extra funding and were thrilled that it appears the provincial government is not attaching any strings to how the money is to be spent. The provincial government calculated the grant amounts using per capita permanent population.

The Blue Mountains received significantly less than other area municipalities because of the seasonal nature of its population base.

"This is very welcome money," said Grey Highlands Mayor Brian Mullin, who said it was likely his municipality would use the new funding in the 2009 budget. "I can't see us getting ramped up for too many more projects this year. We are looking at rebuilding a bridge and we might get that ready for tender this fall," he said.

The Blue Mountains Mayor Ellen Anderson welcomed the funding announcement and said her municipality would be conversing with the province concerning the formula used to calculate what each municipality receives.

"If you put our full and part time population that we truly have we'd probably get twice the amount we received," said Anderson, noting that on weekends the population in The Blue Mountains swells to more than 17,000, a number that doesn't include tens of thousands of visitors that come to her municipality as well.

"Hopefully that's something on the province's agenda in the future. I think if we can prove our case a review can happen. There are some municipalities that are short changed for the infrastructure amounts they need to truly operate effectively," she said.

Grey County Warden Kevin Eccles said the county level of government would put the extra money to good use.

"You haven't got enough paper to print all the ideas I've heard for how to spend it," said the Warden with a laugh. "They told us they plan to get the cheques out in the next month and a half, then we have to get to work on spending the money," he said.

Eccles said the county has infrastructure needs in just about every department. He noted that the county's social housing stock needs millions in investment and that the county's homes for the aged probably could use some extra cash as well.

Meaford Mayor Francis Richardson said the province delivered on a promise made to municipalities several months ago.

"This is the money Premier McGuinty promised. He said any surplus over $600 million would be given back to municipalities," said Richardson. "It's great and it's good for us," he said.

All of the municipal leaders interviewed said they were pleased that the province isn't dictating how and when the money will be spent.

"With no strings attached it doesn't force us into making quick decisions on projects for this year just to get the money out the door. It's great for planning," said Mullin, noting that he expects a lot of debate at the county level about how to spend the $2.1 million windfall.

"It's a better problem to have than the other way," he said of having extra money to spend instead of having no money.

Both Anderson and Eccles said they are pleased the province respects the decision-making abilities of local governments concerning how the extra money will be spent.

"Municipalities need that flexibility because throughout Ontario things are changing and now we've been given both the dollars and the flexibility to act. I see that continuing in the future. I think both levels of government understand that's what municipality's need," said Anderson

"It's not being dictated to us. I think municipal elected officials are starting to garner the respect of our provincial counterparts," said Eccles.

Richardson said the Municipality of Meaford now has the opportunity to do extra work that was put off during the tough 2008 budget process.

"I suspect we'll be looking at our roads. This money means we're going to be able to do some things this year that weren't going to get done and we can put some money away for capital next year," he said.

Mayor Richardson said he was pleased the provincial government was allowing flexibility on how the money will be spent. "There's a much broader spectrum for what a municipality really needs," he said.