OLDS — The Town of Olds is receiving 33 per cent less funding from the province for capital projects than it received on average annually over the past 12 years, chief administrative officer Brent Williams says.
He says that funding cut will really hurt the town’s efforts to deal with its water leakage problems and other infrastructure challenges.
The province has replaced the Municipal Sustainability Initiative (MSI) with the Local Government Fiscal Framework (LGFF).
During council’s Jan. 8 meeting, Coun. Darren Wilson said the town can expect to receive $1.24 million in LGFF funds this year and $1.4 million in 2025.
“LGFF has been introduced with a 33 per cent reduction from the average annual capital funding the town received over the last 12 years,” Williams wrote in an email.
“Given the significant rise in constructions costs for infrastructure replacement, this funding cut is substantial and detrimental to our ongoing water and sanitary improvement program.”
A main focus for the town this year is to battle one of its most expensive issues – water loss, also known as inflow and infiltration I & I). The cost of that water loss is expected hit $2.3 million.
This year, the town has earmarked more than $1 million to battle the problem.
“We have directed all LGFF funding in 2024 toward water loss and inflow and infiltration, however, $1.2 million is not sufficient to keep pace with the needs of this core infrastructure,” Williams wrote.
“And this also affects other capital needs, such as asphalt and sidewalk repair, facility upgrades, and equipment replacement.”
