DIDSBURY - Town council has approved a plan to send a letter to the provincial government calling for increased funding for municipalities under the new Local Government Fiscal Framework Act (LGFF).
The move came by way of motion at a recent regularly scheduled council meeting, held in person and online.
The new LGFF is set to replace the Municipal Sustainability Initiative (MSI) funding program. The purpose of both programs is to support municipalities in the creation, maintenance and replacement of essential community infrastructure.
The MSI program has historically delivered about $1.1 billion to municipalities every year. The new LGFF proposes to deliver $722 million, a decrease of 36 per cent.
Provincial funding for local infrastructure has dropped from $420 per Albertan in 2011 to about $150 per Albertan in 2023, council heard.
At its recent fall convention, the Alberta Municipalities Association (ABmunis) passed a resolution calling on the province to increase the proposed LGFF amount to $1.75 billion per year.
The town received $713,410 in MSI funding in 2022.
“To provide context as to the possible expenses incurred for infrastructure initiatives in 2022 (in Didsbury), the water and wastewater lines, curb, gutter and asphalt were replaced on 21st Street from 15th Avenue to 18th Avenue, the sum of the project was $2 million,” chief administrative officer Ethan Gorner said in a briefing note to council.
“Similar initiatives in future years are budgeted at approximately $700,000 per block of road to have similar services replaced.”
Mayor Rhonda Hunter says providing $722 million to all the municipalities in Alberta under the new LGFF would not be adequate to meet needs.
“Our taxes can’t go up 25 or 30 per cent to pay for things; they can but that’s not realistic,” said Hunter. “The dollar amount isn’t realistic.
“The number has to be talked about and the starting amount has to increase and $1.75 billion is reasonable because it really should be $2.25 billion based on 2011 numbers.”
Administration recommended that council write a letter to Alberta Municipal Affairs Minister Rick McIver in support of the ABmunis resolution calling for LGFF funding to be set at $1.75 billion in 2024.
Council passed a motion approving the recommendation. Hunter says the letter will go out immediately.
