INNISFAIL – Last month senior Town of Innisfail officials took in a town hall meeting to hear the fine details of the new Local Government Fiscal Framework (LGFF) program for annual infrastructure funding.
The picture, in the near future at least, is not promising.
According to Alberta Municipalities (ABmunis) there has been 36 per cent less infrastructure funding than the historical average of MSI monies from 2011 to 2020.
Four years later in 2024, the town is now saying funding has dropped even further to 43 per cent.
Council was also told last week that in 2011 the province invested $420 per Albertan for community infrastructure but in 2024 that amount has been reduced to only $175 per Albertan.
On Feb. 5, Erica Vickers, the Town of Innisfail’s director of corporate services, presented a LGFF report to town council at its Agenda & Priorities meeting.
Since last year mayor Jean Barclay has become increasingly concerned with the provincial government’s forecasted funding from its new LGFF program, especially as the town is facing a significant infrastructure deficit.
“We know that through out Asset Management Program that administration has worked on we are likely right now underfunding by about $1 million,” said Barclay. “When we look at where the revenue is through LGFF in 2011 compared to now we’re receiving 43 per cent less in funding from the province.
“That is massive.”
Council was reminded the new LGFF program in its inaugural funding allocation for 2024 is replacing the Municipal Sustainability Initiative (MSI), which ran from 2007 to 2023.
The LGFF program has two components; one for capital funding and another for operating.
The immediate bottom line for Innisfail in 2024 is that the town is receiving $1,109,729 in capital funding, which is about $100,000 less than anticipated, and about equal to a one per cent tax increase for local taxpayers.
The town is also receiving $130,080 in LGFF operating funds.
“We need to do a budget adjustment. We’re going to have to cut something, or have a (tax) increase,” said Barclay, adding the $1.1 million the town is receiving will only go so far to address local infrastructure needs. “It's barely enough to do two blocks of infrastructure replacement.
“One item in our budget, just one, is a sanitary force main, and that one project is a million dollars.”
Vickers’ report to council noted that LGFF funding will increase next year by 13.6 per cent from the 2024 level.
In 2025, the town is slated to receive an increase in LGFF capital funding to $1,265,548. The operating amount is not yet known.
Vickers said in her report that the 2026 LGFF allocations are expected to be released in the fall of 2024.
In the meantime, council was told that ABmunis is continuing its call on the province to increase LGFF baseline funding from $722 million to $1.75 billion.
“The $722 million in LGFF baseline funding does not begin to address Alberta’s $30 billion (and growing) infrastructure deficit,” noted Vickers’ report to council.
Council was told ABmunis continues to lobby to the provincial government for increased LGFF allocations.
Vickers’ report to council noted ABmunis is also requesting the allocation formula base amount be increased every three to five years based on inflation to support smaller municipalities that are more reliant on the base amount.
