Municipalities in the Simcoe County area are receiving a total of $39.5 million in infrastructural renewal cash – grants that Ontario Premier Dalton McGuinty said will stimulate the economy as well as improve the quality of services.

At the 109th-annual Association of Ontario Municipalities (AMO) conference Monday, McGuinty announced $1.1 billion in Investing in Ontario Act grants – cash the government is reinvesting from last year’s surplus.

“We decided that, rather than have the entire surplus go towards the debt – as was required under the old law – we should have a new law (the Investing in Ontario Act) that dedicates part of that surplus to a priority of our choosing. This year, we chose Ontario municipalities – not health care or education, although there’s no shortage of demand there. We chose you, our municipal partners,” he said to the 1,200 delegates, who gave him a standing ovation.

“This money will help you meet your infrastructure priorities. It will strengthen the Ontario economy and it will create up to 11,000 jobs.

“Here’s what I’m encouraging you to do: take your local share of this investment, pick a project, make it something you need urgently – and move that project forward as quickly as possible. Let’s give Ontario the infrastructure we need to get ahead of the global competition and stay there.”

Distributed based on population, the one-time grants will see Barrie receiving $12 million, Orillia, $2.8 million, and Simcoe County $5.5 million. The 16 lower-tier municipalities are also receiving cash, although some of their population allocation is being provided to the county, which is responsible for roads and bridges.

Finance Minister Dwight Duncan said Barrie could use the cash to upgrade Highway 400 interchanges and bridges – projects the city expects will cost $200 million .

Barrie CAO Jon Babulic said the city has several projects on the go – including a $150-million surface water treatment plant, a $110-million upgrade to its sewage treatment plant and $200 million for roads and bridges that connect to, go over or under Highway 400.

“The top priority is Dunlop Street. It keeps backing up down the ramps,” said Babulic. However, development pressures in the Essa Road area have moved that interchange up the action plan, he added.

“We have plenty of places to spend the money,” he continued, adding the city also has plans to spend $30 million to upgrade stormwater management ponds – which filter runoff and therefore reduce phosphorous and other contaminants in water flowing into the lake.

Collingwood Mayor Chris Carrier said he’d expect his town to upgrade First Street.

McGuinty finished his speech by urging municipal politicians to fight for fairness for Ontario in the as-yet undeclared federal election.

The annual AMO conference continues through Wednesday.