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Managing growth pressures
September 14, 2007
Landmark initiative gives municipalities 10 years of stable funding
Province provides flexibility for municipalities to target spending in future years
Edmonton... After consultation with municipalities, Premier Ed Stelmach is announcing the funding formula for the Municipal Sustainability Initiative (MSI). This historic 10-year funding arrangement will provide municipalities with more flexibility on how to spend their MSI funds in subsequent years and fulfills the Premier’s commitment to all Alberta municipalities to address growth pressures.

“This is historic,” said Stelmach. “Never before have Alberta’s municipalities been able to bank on such a substantial package of sustainable funding.”

“This arrangement gives municipalities flexibility to target MSI funding towards their specific high-priority projects while ensuring accountability to taxpayers,” said Ray Danyluk, Minister of Municipal Affairs and Housing. “The 10-year funding will help municipalities achieve a predictable and sustainable revenue source for the future.”

The funding formula is a hybrid of population, education property tax requisitions, and kilometres of road. It also includes base funding for all municipalities.

This initiative ensures the continued need for municipal accountability and recognizes that if provincial revenues fall, the MSI may have to be adjusted.

The MSI program fulfills the Premier’s commitment to provide municipalities with new funding of $400 million for this year, $500 million in 2008-09, $600 million in 2009-10 and ramping up to $1.4 billion annually in 2010-11. The total funding over the 10-year period is estimated to be $11.3 billion.

This initiative is one of the actions under Premier Stelmach’s plan to manage growth pressures. Other priorities for the government are to govern with integrity and transparency, improve Albertans’ quality of life, build a stronger Alberta, and provide safe and secure communities.

To call toll free within Alberta dial 310-0000.

September 14, 2007

MSI funding formula for municipalities

MSI funding for 2008-09 and future years will be calculated and allocated to municipalities on the following basis:

• Municipalities will receive base funding of $35,000 in 2008-09 and 2009-10. In 2010-11, base funding will increase to $120,000 annually. Municipalities with populations less than 100 will receive pro-rated base funding of $350 per capita in 2008-09 and 2009-10 and $20,000 plus $1,000 per capita in 2010-11 and the years following. Summer villages will receive 50 per cent of base allocation.
• Municipalities with under 10,000 population and limited local assessment bases will also receive sustainable investment funding. A total of $15 million will be allocated in each budget year to qualifying municipalities.
• The remaining funds which constitute the large majority of MSI funding will be allocated by a formula incorporating the following: 48 per cent allocated on a per capita basis; 48 per cent allocated based on education property tax requisitions; and four per cent allocated based on kilometres of local roads.
• Various municipalities had their own preferred allocation formulas for the MSI. This hybrid formula delivers within 85.9% and 91.3% of their preferred models.

Final funding allocations for all Alberta municipalities will be announced later this year and posted on www.municipalaffairs.gov.ab.ca once official municipal population lists and final education tax requisitions are determined.

Preliminary estimates indicate that once the program is ramped up to $1.4 billion per year in 2010-11:

• Calgary will receive approximately $406.7 million per year and $3.3 billion over 10 years.
• Edmonton region of 24 municipalities will receive $380.4 million per year or $3.1 billion over 10 years (City of Edmonton will receive approximately $260.7 million per year and $2.1 billion over 10 years).
• Other Alberta municipalities will receive the balance of the funding, which is approximately $732.6 million per year or $5.9 billion over 10 years.

To call toll free within Alberta dial 310-0000.

Managing growth pressures
August 17, 2007

Province provides $14.2 million in Municipal Sponsorship Program grants to strengthen municipalities

Edmonton... The Alberta government will make $14.2 million in grants available to about 350 municipalities in an ongoing effort to strengthen communities across the province.

“This program promotes municipal collaboration while focusing on projects that respond to municipal priorities,” said Municipal Affairs and Housing Minister Ray Danyluk.

The funding will provide integral financial support for projects that improve municipal governance or administration, enhance municipal services or service delivery, and/or increase intermunicipal co-operation.

Changes to the 2007 Municipal Sponsorship Program include increasing the intermunicipal bonus from 25 per cent to 35 per cent, and creating a new recreation priority project category to give municipalities a wider range of project options. Applications and guidelines are being mailed out to eligible municipalities. The deadline for submitting applications is September 28.

The Municipal Sponsorship Program is open to small- and medium-sized municipalities with populations of 20,000 or less. Improvement districts, special areas, and Métis settlements are also eligible. This annual program is separate from the Municipal Sustainability Initiative announced in Budget 2007.

Funding is based on the 2006 Official Population list and includes bonus funding for projects that are intermunicipal and/or projects for selected municipal-provincial priorities.

In 2006/07, grants totalling $13.5 million were provided for 300 projects. Projects in that year included:

• $130,000 to Yellowhead County and the Town of Hinton to purchase a rapid response vehicle for the Hinton Fire Department.
• $54,000 to the Town of Didsbury to purchase organic material composting waste bins to operate the Green Bin Program.
• $132,000 to the City of Camrose to install a fibre optic cable conduit to complete the local area network between the fire hall, police station and city hall.

This funding is one of the actions under Premier Ed Stelmach’s plan to manage growth pressures. Other priorities for the government are to govern with integrity and transparency, improve Albertans’ quality of life, build a stronger Alberta, and provide safe and secure communities.

To call toll free within Alberta dial 310-0000.

August 17, 2007

Municipal Sponsorship Program

Alberta municipalities with populations of less than 20,000 are eligible for the following:
 

• A basic per capita grant:
  • for a municipality of a population less than 1,001, a base grant entitlement of $3,000 plus $9 per capita;
  • for a municipality with a population from 1,001 to 5,000, a base grant entitlement of $12,000 plus $7 per capita for population in excess of 1,000; and
  • for a municipality with a population from 5,001 to 20,000 a base grant entitlement of $40,000, plus $5 per capita for population in excess of 5,000.
• A funding bonus of 35 per cent for eligible intermunicipal projects.
• An additional funding bonus of 60 per cent for projects that fit into the following priority project areas:
  • energy efficiency;
  • infrastructure management systems;
  • emergency services;
  • sustainability and land-use planning;
  • water/wastewater/solid waste management systems; and
  • recreation.

Alberta Municipal Affairs and Housing evaluates grant applications based on application completeness, intermunicipal co-operation, and meeting the outlined priority project areas.

Grants for approved projects are paid once the municipality and Alberta Municipal Affairs and Housing sign the conditional grant agreements.

This year’s application deadline is September 28.

To call toll free within Alberta dial 310-0000.

April 23, 2007

Edmonton... Communities looking to plan, upgrade or build major public-use facilities will be able to access funding from a new, two-year, $280-million program created by the Alberta government.

Part of Budget 2007, the Major Community Facilities Program will provide funding support to municipalities, not-for-profit organizations and Aboriginal communities for projects that are identified as a priority by a community. Projects that meet the criteria for the program include sports, recreational, cultural or other related family and community wellness facilities. Core infrastructure such as roads, sewers, schools and hospitals will not be eligible for funding.

"Every community has competing priorities when it comes to infrastructure dollars," said Premier Ed Stelmach. "With the additional funding available through this program, communities of all sizes can undertake important capital projects for recreational and cultural facilities that contribute to the well-being of citizens."

To assist communities with targeted infrastructure needs, $140 million will be available in the current fiscal year and another $140 million in 2008-09. For the purpose of this program, the province is divided into four regions: Calgary, Edmonton Capital Region, other Albertan cities and rural Alberta. Each region is eligible for one-quarter of total program funding.

"I expect this program will also help communities deal with their aging recreation infrastructure," added Hector Goudreau, Minister of Tourism, Parks, Recreation and Culture. "As a government, we recognize the importance of community infrastructure that helps Albertans maintain active, healthy lifestyles."

The Major Community Facilities Program will be funded through the Alberta Lottery Fund. The new program was created to accommodate requirements of larger capital projects. It will not replace other current programs that fund community projects. The maximum grant amount is $10 million.

Applicants must meet established program guidelines and submit a business case to be considered for funding. Funding recommendations will be made based on these guidelines. All grants will be reported on www.albertalotteryfund.ca once they are processed. Further details are available at www.tprc.gov.ab.ca or by calling 1-800-642-3855.

Supporting community infrastructure is part of Premier Ed Stelmach's priority to improve Albertans' quality of life. Other priorities for government are to: govern with integrity and transparency, manage growth pressures, provide safe and secure communities and build a stronger Alberta.

• Build, purchase, repair, renovate, upgrade or otherwise improve major sports, recreational, cultural or other related family and community wellness facilities.
• Help organizations conduct studies to assess an existing facility, provide life cycle analysis, develop design documents, or help assess the need for a new facility or the upgrading of an existing facility.

• Funding requests of $500,000 or less will require equal or greater matching dollars from the applicant.  Provincial funding must not exceed 50 per cent of total project costs. 
• Major Community Facilities Program (MCFP) funding requests of more than $500,000 must contribute an amount equal to or exceeding two-thirds (2/3) of project costs.  Provincial funding must not exceed one-third of total project costs.

• Applicants must ensure the facility or area is accessible to the general public.
• Applicants are encouraged to obtain a statement of municipal support of the project.

Criteria used to approve projects normally includes, but is not necessarily limited to, the following:

Project Viability: background of applicant (i.e. membership size/representation), sufficiency of matching resources, how total project funding will be provided, and long-term financial viability and self-sufficiency.

Project Benefits: direct and indirect community economic benefit, quality of life/community wellness enhancement, operational efficiencies and protection of previous provincial investment.

Community and Regional Need: public safety/improved access (including disabled), enhanced utilization, meets changing needs and municipal/community support.

Availability of MCFP Funding: prior MCFP or other government funding for similar purposes to applicant/community, regional funding equity.

Special Considerations: proven extraordinary need, priority within a high-needs region, special events/disaster related or regional/provincial scale projects.

Due to finite funds and the anticipated volume of applications, not all requests meeting the criteria will obtain grant approval. Where appropriate, a grant amount less than that sought by the applicant may be awarded. Complete program guidelines will be available shortly. For information visit: www.tprc.gov.ab.ca or call 1-800-642-3855.

Click here for grant application form!

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