WHEREAS the Municipal Sustainability Initiative (MSI) has allowed municipalities to undertake critical projects of benefit to all Albertans; and
WHEREAS MSI plays a major role in providing infrastructure renewal for communities throughout Alberta; and
WHEREAS municipalities across Alberta have come to rely on MSI funding to pay for critical infrastructure projects annually; and
WHEREAS the Government of Alberta has entered into an agreement with the Government of Canada to provide funding through the Investing in Canada Infrastructure Program (ICIP); and
WHEREAS the Government of Alberta has recently announced that municipalities must use MSI funds as the provincial share of the ICIP when applying for funds through the program;
THEREFORE, BE IT RESOLVED that RMA advocate to the Government of Alberta to provide additional funding to municipalities for the provincial contribution of Investing in Canada Infrastructure Program funding.
Under the Government of Canada’s Investing in Canada Infrastructure Plan (ICIP),
Alberta will receive $159.7 million for rural and northern community projects over the next 10 years.
Rural and remote communities with populations of 100,000 or fewer can apply for funding to support projects that improve food security, local road or air infrastructure, broadband connectivity, efficient and reliable energy sources, and improved education and/or health facilities.
The federal government will cost share for eligible projects up to the following:
50% for provincial projects; or for municipalities with populations more than 5,000 and not-for-profit partners
60% for municipalities with populations less than 5,000
Mackenzie County applied for funding for a $24 million project, of which ICIP funding would cover $9,200,000 or 40%. Mackenzie County is left with the remaining $6,134,100 or 27% as the municipal cost-share contribution as well as an expectation that Mackenzie County’s Municipal Sustainability Initiative (MSI) funding allocation cover the remaining $7,665,900 or 33% provincial contribution. Mackenzie County’s MSI allocation is needed to fund core operations such as roads, graders, etc. leaving Mackenzie County with 60% of total cost to address the potential ICIP project. This will create strain on the county’s daily necessary operations, further increasing the municipal infrastructure deficit. With additional funding, new infrastructure will be made possible in order to stimulate growth and industry in this area. As outlined on the Government of Alberta website:
The Municipal Sustainability Initiative (MSI) helps support local infrastructure priorities and build strong, safe and resilient communities. Municipal Affairs has allocated almost $9.6 billion to municipalities since the program launched in 2007. This has meant communities across Alberta have been able to build and rehabilitate their roadways and bridges, water and wastewater systems, public transit facilities, and recreation and sport facilities, and address other key local priorities.
RMA has no active resolutions directly related to this issue.