The City of Winnipeg is considering suing the Pallister government over bus rapit transit funding.
Mayor Brian Bowman says a demand letter has been sent to the province over outstanding money he says is owed for the southwest transit line currently under construction.
"It's a very serious matter," said Bowman.
Bowman says the letter is clear, all legal options are on the table.
The $467 million project was cost shared by all levels of government.
The mayor says the province has been trying to renegotiate a signed agreement.
The Pallister government suggests the move is an election year stunt.
"I appreciate the mayor is running for re-election, but some of his comments are neither helpful nor accurate," said Municipal Relations Minister Jeff Wharton.
Wharton says when $120 million in savings was realized on the project, the province did not receive its fair share back.
According to the province and the city, the disputed funds amount to $7.9 million.
Wharton says the city has been dragging its feet for 18 months on the issue, but says city officials sent word last week that they're willing to sit down and discuss the funding issues.
