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Future unclear for funding

Administrators in Black Diamond and Turner Valley are questioning what the future holds for infrastructure as the Province prepares to change a funding model that provides each town with about $500,000 annually.

Administrators in Black Diamond and Turner Valley are questioning what the future holds for infrastructure as the Province prepares to change a funding model that provides each town with about $500,000 annually. The Province announced last spring it will replace the Municipal Sustainable Initiative (MSI) infrastructure grant program with a new one based on revenue sharing. It expects to have the new program legislated this fall. “I think every municipality in Alberta is waiting to hear how they’re going to roll out infrastructure funding in the future,” said Heather Thomson, manager of legislative services in Turner Valley. “It’s worrisome not knowing. We depend on that money for upgrading our infrastructure.” The MSI grant program was launched in 2007 as a key source of revenue for Alberta communities, providing capital funding for infrastructure projects like roads, sidewalks, water, wastewater, parks and recreation. Although it was intended to be a 10-year program, the agreement between the Province and municipalities was extended to the 2020/21 fiscal year. “It was the previous government that was looking at changing the structure of it,” said Thomson. “Maybe they’ll just extend it until after the election. Maybe we’ll hear something at the AUMA convention (Sept. 26-28 in Red Deer). “It will be a question that’s on the top of every municipality’s head going into that convention, especially smaller municipalities because it is smaller municipalities that really depend on that money.” The amount allocated to each community depends on its population, said Thomson. The Town of Turner Valley received $486,614 this year, as well as a supplement of just under $400,000. “The supplementary portion that we got this year was a very nice touch and appreciated,” Thomson said. “We’re wondering, is this the direction we’re going or are we going to be dropping back to our normal amounts? Council was concerned that we should not be spending all that money this year because it was a bonus that we don’t know if we’re ever going to get again.” Thomson said municipalities have the authority to roll the money over for projects in future years. This year, the grant money is supporting work on the Town’s Seclusion Valley lift station, alleyway apron paving program, Main Street South pathway construction and solar pedestrian crosswalks. In Black Diamond, the MSI grant went towards projects relating to water, sewer, collection systems, roads and lift stations this year and last, according to Sharlene Brown, Black Diamond chief administrative officer. She said the Town has spent about $1 million in MSI funding on infrastructure projects both this year and last. It received $500,000 from the Province’s MSI grant each year, as well as $408,000 in supplement allocation last spring, said Thomson. “It’s great that we have that extension or else we wouldn’t have been able to do the work that we’ve been doing,” she said. “It makes a huge amount of difference. We would not be able to do the work that we’ve done in town without the assistance of MSI.” Brown said it’s a little unnerving not knowing what the future holds as the Province works on a new funding agreement. “What that looks like we don’t know,” she said. “Until there is a new funding agreement between ourselves and the Province, our ability to do infrastructure revitalization will be limited.” Brown said prior to 2007, the province had various different grants supporting municipalities. “The MSI was a consolidation of all those grants,” she said.

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