Alberta announces infrastructure grant to help municipalities with population growth

Alberta's small, mid-sized communities get cash The province is providing $60 million for infrastructure projects in small and mid-sized communities stressed by population boom.

LETHBRIDGE, ALTA. — Alberta is offering infrastructure funding to help municipalities accommodate recent population growth.

The province has added a little over 500,000 people over five years, putting pressure on public services.

In response, the provincial government announced the Local Growth and Sustainability Grant on Tuesday.

“We asked municipalities to step up and create economic activity, to provide investment, grow jobs for Albertans, and they've really done that. But sometimes when municipalities do that and do great things for the municipality that way, it does create other issues,” said Minister of Municipal Affairs Ric McIver.

The grant will provide $60 million to municipalities over three years.

McIver says the program is meant to help fast-growing mid-sized cities with populations under 200,000 address infrastructure needs such as sewer systems, roads and water lines.

Some of the annual funding will be set aside for municipalities with fewer than 10,000 people.

“It's just really important for Alberta's mid-sized cities to be recognized for the contribution and the concerns that they carry for so many citizens. We are experiencing tremendous growth all across Alberta. And Lethbridge is no exception,” said Lethbridge-East MLA Nathan Neudorf.

The province consulted with several communities about the challenges they're facing.

Municipal leaders said while growth is good for their economies, keeping up with that growth has been challenging.

“We can't thank the government enough for this particular grant funding and for them to be down and to listen to our council and have us share the concerns that we have within our community,” said Lethbridge Mayor Blaine Hyggen.

The province knows the new grant won't fix all the problems caused by rapid population growth but hopes the additional funding will help relieve some of the pressure on municipalities.

“This program is not meant to be a magic bullet. It won't fix all municipal funding issues, but it does help us respond directly to the types of things that municipalities, particularly mid-sized municipalities in Alberta that all towns, cities and villages have said is required,” McIver said.

'Step in the right direction'

While most of the people migrating to Alberta are coming to Calgary and Edmonton, housing and affordability issues in the big cities are forcing some people to look elsewhere.

Cochrane has seen its population double in the last eight years, the town's mayor says, and continued growth is projected to see its population swell from about 37,000 to north of 80,000 people in the next couple of decades.

"We've been asking the province for some help in recognizing that when you're calling and people are answering the call, they're out there," said Cochrane Mayor Jeff Genung, who is also the chair of the Alberta Mid-sized Cities Mayors' Caucus.

The growth is having an impact on services towns and cities provide, including their roads, bridges and water infrastructure, Genung added.

"It won't solve all of our community's needs. But, like I said, it's a step in the right direction. The recognition that growth has significant pressures on our communities is a huge win," he said, adding the mid-sized mayors' caucus has been long advocating for more provincial money.

The big cities, where the majority of people have been migrating to in Alberta, are also looking for more provincial support.

“I'm very happy that (Minister McIver) made this announcement today," said Calgary Mayor Jyoti Gondek.

"We continue to hold out hope that he will see how Calgary also desperately needs more assistance. We are the fastest-growing city in this province, and we could sure use a hand as well."

Applications for the grant are open from now until Nov. 29.

McIver says the program will likely be oversubscribed given the limited funding available and the widespread need for additional infrastructure funding across the province.

Alberta Municipalities, the organization that represents mid-sized cities, estimates the province has a $30 billion infrastructure deficit.

With files from The Canadian Press