Service Exchange specified “J” Class roads and suburban subdivision roads would be transferred to rural municipalities, and that rural municipalities would pay a fee per km of local road, to be adjusted by CPI each year. The amount of the fee in 2014 paid by rural municipalities was $3.7 million, and does not go to TIR directly. The number of kms used to calculate the fee was fixed. Local roads built after April 1, 1995, are maintained by the rural municipality. Local roads constructed pre-April 1, 1995 are maintained by the province. The amount TIR spent to maintain local roads in rural municipalities in 2014 was $86 million. TIR is responsible for 81% of the local roads in the province. Questions have been raised about TIR’s cost-sharing program, and about the priorities assigned to rebuild roads and maintenance work. The perception is that there has been a change in TIR’s approach. Towns own and maintain all the roads within their boundaries, some 827 kms of local roads. In addition, there are 251 kms of collector and arterial roads which towns maintain. Service Exchange also noted the province should contribute to arterial and collector roads in urban areas, recognizing they are dual purpose roads for local access and through traffic, however there is currently no provincial grants to towns to offset maintenance costs. Both towns and rural municipalities cost share on the surface components of bridges, but TIR is responsible for all the substructure components. Fiscal Review raised the road issue, explored some options and posed a solution that saw rural municipalities increase the amount they were paying to the province for rural roads. Reaction was mixed, and depended on other aspects of Fiscal Review being implemented. The issue is complicated, as the current situation was negotiated under Service Exchange many years ago. Many aspects of Service Exchange have now changed.