Local Government Fiscal Framework – Operating funding

Funding for local governments to support the municipal services Albertans need.


This component of the Local Government Fiscal Framework (LGFF) supports local governments by funding capacity building activities, municipal services and planning activities. In addition, local governments have the flexibility to use their operating funding to assist non-profit organizations to carry out eligible activities.


Operating funding is $60 million annually. To provide stability, Budget 2024 allocation amounts to local governments remain fixed at the same level as operating funding amounts allocated under the Municipal Sustainability Initiative in Budget 2023.

LGFF Operating allocation amounts:

View 2024 allocations by local government.


All local governments other than the cities of Calgary and Edmonton are eligible for operating funding. This includes municipalities, Metis Settlements and the Townsite of Redwood Meadows.

Eligible operating activities include:

  • capacity building activities that improve efficiency or effectiveness
  • municipal services
  • planning activities
  • assistance to non-profit organizations

The content of the LGFF Operating Program Guidelines closely mirrors the Municipal Sustainability Initiative (MSI) Operating Program Guidelines. The only significant LGFF Operating Program change is under Section 6.2 Carrying Forward Funds.

Local governments must spend their annual LGFF operating allocation in the year it was allocated. Any unspent LGFF operating funds cannot be carried forward to the next calendar year. Local governments that have not expended their LGFF operating allocation, including credit items, on/before December 31 (March 31 for Metis Settlements) will be required to return those funds to the Government of Alberta and/or if applicable, forfeit any unpaid allocations.

How to apply

Applications are not required to receive LGFF operating funding.

Payment of allocations will commence after April 1, 2024. Local governments must meet reporting requirements for the last year of the Municipal Sustainability Initiative operating funding, and they must enter into a new LGFF funding agreement with the province.

Guidelines and resources

LGFF Operating Program Guidelines


Connect with the LGFF program:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-422-7125
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]

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