Municipal Sustainability Initiative

PROGRAM DESCRIPTION

The Municipal Sustainability Initiative (MSI) is the Province of Alberta’s ten year funding commitment (2007/08 - 2016/17) to assist municipalities in meeting growth-related challenges and enhancing long-term sustainability.  MSI funding is provided in addition to other provincial grant programs.

Each year, municipalities will be advised of their annual MSI grant allocation following approval of the provincial budget.  Amounts are formulated based on municipal populations, education property tax requisitions and kilometres of local roads and includes base funding for all municipalities and Sustainable Investment funding for municipalities with limited local tax bases.

FUNDING ALLOCATIONS

In 2007, municipalities received a total of $400 million.  This amount will increase to $500 million in 2008, $600 million in 2009, and $1.4 billion annually beginning in 2010.

Of the total MSI funding allocated each year, $50 million is provided to municipalities in the form of conditional operating funding (see the Conditional Operating Program Guidelines link below).  The remaining funds are to be used towards qualifying capital projects.

 The following MSI capital and operating funding amounts show actual MSI allocations for 2007 and 2008. 

The 2008 allocations are based on 2007 official populations, 2007 education tax requisitions, and kilometres of local road as of December 31, 2006.  Allocations include base funding for all municipalities, as well as Sustainable Investment funding for municipalities with limited local tax bases. 

Subsequent year allocations will be updated annually based on year-to-year changes in population, education tax requisitions, and kilometres of local road.

Ten-year MSI estimates will be posted later this summer.

APPLICATION FORMS AND GUIDELINES

MSI CAPITAL Project Funding

Note: If a municipality uses 2007 MSI Capital funding towards project expenses incurred in 2007, original 2007 program guidelines/conditions apply.  The new program guidelines and new project profile form apply to projects that will use 2008 or future year’s MSI capital dollars or funding carried forward from 2007. 

Under the new guidelines, core and community capital funding components have been combined into one capital funding component.  While intermunicipal cooperation and jointly-funded projects continue to be encouraged, they are no longer MSI capital program requirements.  These changes reflect input from public consultation sessions held across Alberta in July and August of 2007.  

Project profiles for 2008 MSI Capital funding may be submitted to Municipal Affairs at any time prior to June 1, 2008.  In future years, the deadline for project profiles will be April 1.

MSI CONDITIONAL OPERATING Project Funding

  • Program Guidelines (effective January 1, 2008) pdf
  • Project Profile (effective January 1, 2008) pdf, fillable form
  • Statement of Funding and Expenditures (for 2007 expenditure year) pdf, fillable form

Note: Any 2007 operating funding that has been carried forward to 2008 is subject to the updated guidelines.  Funding that has been carried forward must be spent on qualifying operating expenses that have been incurred in the 2008 calendar year: January 1, 2008 to December 31, 2008.  Funding not applied in the calendar year may not be carried forward for use in future years.

Under the new guidelines, municipalities that elect to provide a portion of their funding to non-profit organizations either directly or indirectly are now subject to additional reporting requirements.  Goods and Services Tax (GST) is not a qualifying operating expense.  

Project profiles for 2008 MSI Operating funding may be submitted to Municipal Affairs at any time prior to June 1, 2008.  In future years, the deadline for project profiles will be April 1.  

For more information, contact a Grant Policy Advisor at the following:
Municipal Grants and Information Services Unit
Municipal Services Branch
Alberta Municipal Affairs and Housing
17th Floor, Commerce Place
10155 - 102 Street
Edmonton, Alberta T5J 4L4

Phone: (780) 427 2225
Dial 310 0000 for toll-free connection in Alberta
Fax: (780) 420 1016
E-mail:
mah.msicapitalgrants@gov.ab.ca (capital funding)
mah.msioperatinggrants@gov.ab.ca (conditional operating funding)