Mayor Fred Eisenberger praised Ontario Premier Dalton McGuinty for shocking 1,600 municipal politicians by announcing $1.1 billion for their communities at the annual Association of Municipalities of Ontario conference in Ottawa. “It was a brilliant announcement on his part,” said Eisenberger, who along with Dundas councillor Russ Powers attended the annual event.

The funding, which will be divided among municipalities based on population, will be given to the communities this fall. Hamilton’s share is about $48 million.

“It’s good news for all municipalities,” said Eisenberger. “That certainly helps us in a number of areas.”

Eisenberger said Hamilton is facing serious deficits in road construction, water and sewer and culture and recreation. Councillors discovered earlier this year that the city’s roads deficit had ballooned to about $40 million. In total, Hamilton has about a $1-billion infrastructure deficit.

“There are lots of areas where we can go,” the mayor said. City staff will be detailing a report to council this fall outlining options on how to spend the money.

The funding will go towards municipalities’ capital infrastructure. Municipalities do not have to submit projects for money, but there will be an audit conducted on how the money is spent, said Ancaster-Dundas-Flamborough-Westdale Liberal MPP and cabinet minister Ted McMeekin. In the past, some municipalities, including Ottawa, have used provincial infrastructure money for debt reduction. This time they can’t, he said.

McGuinty’s announcement came as a surprise to the municipal politicians attending the conference. The premier had downplayed funding expectations over the last few weeks after he said the Provincial and Municipal Fiscal Review and Service Delivery report had again been delayed, until October. The Liberals created the task force in 2007.

The provincial funding is coming from this year’s $1.7- billion surplus. About $600 million will be earmarked for reducing the province’s deficit, said McGuinty.

“We have been fortunate,” said McMeekin. “By trying to stay focused, we have been able to move the yardsticks significantly.”