+ RMA Rural Municipalities
of Alberta

Resolution 1-09F

MSI Funding

January 1, 2009
Expiry Date:
November 30, 2012
Active Status:
County of Lethbridge
1 - Foothills-Little Bow
Municipal Governance and Finances
Accepted in Principle
Vote Results:

WHEREAS the County of Lethbridge and other local municipalities are very appreciative of Provincial Municipal Sustainability Grant Funding; and

WHEREAS Local Municipalities have applied these monies to critical infrastructure projects such as upgrading of roads, water and wastewater facilities, protective services and public works equipment; and

WHEREAS Municipalities have incorporated multi-year MSI funding into their long-term plans and budgets; and

WHEREAS Municipalities received a significant reduction in their 2009 MSI allotment; and

WHEREAS Rural Municipalities contain the vast majority of roads required to transport commodities to market and the upgrading and maintenance of this infrastructure takes the greatest portion of their annual budgets

Operative Clause:

THEREFORE BE IT RESOLVED that the AAMDC urge the Provincial Government to recognize the high priority on addressing municipal infrastructure needs for safety and economy for transportation of people and commodities by maintaining MSI funding levels set in its 10 year formula.

Member Background:

The County of Lethbridge’s MSI Funding was reduced by 40% or $725,000 in 2009. This has affected planning in many programs, especially in the public works area.

Well over half of the County’s expenditures are applied to its public works programs ie.Roads.

A 10 Year Funding allotment was committed by the Province. Although the Provincial Government can reduce amounts, it is urged that minimal cutbacks be the norm for this important grant program.

Maintenance and upgrading of municipal infrastructure is critical for the local economy and agricultural/commercial community to transport commodities to market. Safety is also a prime issue.

RMA Background:

The AAMDC has no current resolutions directly related to this issue.

Government Response:

Municipal Affairs:
The Government of Alberta recognizes the importance of infrastructure to the well-being of Albertans, and the efforts of municipalities to take a long-term approach to planning projects that will have a significant and lasting impact on municipal sustainability.
Infrastructure is critical to ensuring the safety of communities and economic and social development in Alberta, and continuing with priority capital projects during challenging economic times is essential.
While annual Municipal Sustainability Initiative (MSI) funding is lower than what had been originally forecast when the program started in 2007, Alberta remains committed to the full $11.3 billion investment to municipalities over time.
With this year’s funding, municipalities are continuing to receive considerably more than they did before the MSI program was introduced in 2007.


While MSI funding has been lower in recent years than originally anticipated, the provincial government has committed to distributing the full $11.3 billion, but over an extended time frame.  Given the current fiscal situation, the AAMDC understands the need to extend the timeline and appreciates the provincial government’s continued support of Alberta’s municipalities. The association hopes that as the economy improves, MSI allocations will increase accordingly.

Provincial Ministries:
Municipal Affairs
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