The province has introduced the new Local Growth and Sustainability Grant, a funding program which provides $60 million over three years to municipalities to address growth pressures, emergent needs, and attract economic development opportunities
The Local Growth and Sustainability Grant (LGSG), first introduced in Budget 2024 with a total funding commitment of $60 million over three years, is now accepting applications. The LGSG is comprised of two components: Growth and Sustainability.
Growth Component
Municipalities with populations of between 10,000 and 200,000 people are eligible to apply for this component of the grant. The funding can be used for infrastructure projects that increase housing stock, stimulate economic development and tourism, address challenges associated with rapid population growth, or are linked to non-residential growth opportunities if private sector commitment is confirmed conditional to the construction of specific municipal infrastructure. The provincial government may provide grant funding of up to 50% of the project costs. Minimum project costs are $1 million; there is no maximum project cost. Successful applicants may apply up to 30% of project costs from other provincial grant programs, allowing for “grant stacking.” Eligible projects include:
- Roads and bridges
- Drinking water
- Storm water
- Solid waste management
- Wastewater
- Public transit
- Public safety and security
- Disaster mitigation and resilience
The program will have only a single intake; applications are now open and the deadline to apply is November 29, 2024.
Sustainability Component
Municipalities with populations of below 10,000 people are eligible to apply for this component of the grant, designed to address urgent infrastructure needs that pose significant public health and safety risks. The Sustainability Component has no minimum or maximum project costs, however, eligible municipalities are required to contact the Minister of Municipal Affairs and demonstrate urgent need to advance their request. The Minister has sole discretion to award funds based on eligibility and availability of funds.
RMA Analysis
While the LGSG represents a significant provincial investment in municipal infrastructure support, the RMA is concerned that the program parameters, particularly for the Growth component, will result in a disproportionate share of the funding being allocated to projects in urban municipalities linked to population growth at the expense of projects in rural municipalities linked to industrial/non-residential growth opportunities. During initial engagements on the LGSG, the RMA recommended that the Growth component be divided and that funding be set aside for projects accommodating non-residential growth. This is not the case, meaning that projects responding to residential and non-residential growth will compete against one another using very different evaluation metrics. The RMA is supportive of the consideration of whether a municipality has an up-to-date asset management plan as a factor in application evaluation; this was a core aspect of the RMA’s recommended LGFF formula, and it is encouraging to see the province beginning to link asset management planning to grant funding.
The RMA does appreciate the province’s approach to the sustainability component, as it represents an awareness on the part of the province that some municipalities, particularly those with limited capacity or financial resources, may encounter critical infrastructure failure with no local means to respond. While the LGSG is not a solution to address larger fundamental issues that place small municipalities in this position, it does help reduce the risk that an unexpected infrastructure crisis will lead to non-viability.
The RMA’s ongoing rural municipal infrastructure deficit project demonstrates that rural municipalities are facing an infrastructure deficit of over $17 billion. While the LGSG and other funding programs are appreciated, a large-scale partnership between municipalities and the province is required to meaningfully address this deficit.
Applying
RMA members interested in applying can find the LGSG program guidelines here.
Jared Shaigec
Policy Advisor
825.319.2312
jared@RMAlberta.com
Wyatt Skovron
General Manager of Policy & Advocacy
780.955.4096
wyatt@RMAlberta.com