Municipal Stimulus Program

The Municipal Stimulus Program (MSP) funding is fully committed to eligible projects.

The program is now closed to new applications.

Overview

In 2020, the Government of Alberta provided additional capital infrastructure funding to municipalities and Metis Settlements to:

sustain and create local jobs
enhance provincial competitiveness and productivity
position communities to participate in future economic growth
reduce municipal red tape to promote job-creating private sector investment

Municipalities were required to commit to taking concrete actions to reduce red tape and encourage private sector investment.

The red tape reduction report describing concrete progress made in reducing red tape in 2021 must be submitted before February 1, 2022.

Funding

$500 million
Funding was distributed on a per capita basis with a $50,000 minimum funding amount for municipalities with smaller populations; summer villages were allocated a base of $5,000 plus the per capita amount. This was the same formula as used by the Canada Community-Building Fund (CCBF - formerly the federal Gas Tax Fund).

A local government must fully expend its entire allocation by December 31, 2021, unless an extension has been granted by the Minister of Municipal Affairs. Requests must include detailed rationale outlining reasons for the delay or project change, and can be submitted by email to [email protected].

Eligibility

Eligible projects

Project eligibility was similar to the Municipal Sustainability Initiative (MSI), with modifications to ensure projects meet stimulus program objectives.

Eligible project categories included:

roads
bridges
water and wastewater systems
public transit
recreation

Construction of eligible projects had to begin in 2020 or 2021.

Proponents were required to attest that the project would not go forward in the absence of support through the stimulus program, and would not create operational funding requirements for the province, or result in municipal tax increases.

Ineligible projects

Projects previously approved for CCBF or MSI funding were not eligible. Local governments were not permitted to withdraw and re-submit MSI or CCBF projects to make them eligible.

Rolling stock, such as buses and transit vehicles, and equipment purchases were not eligible for funding.

Local governments were strongly encouraged to consider which projects best suit the program objectives.

Up to 5 applications could be submitted per municipality. Applicants were encouraged to use their allocation on one or 2 projects to minimize administrative and reporting requirements.

Program resources

Red tape reduction forms were distributed to all municipalities on December 3, 2020. If you require a copy of the report template, contact [email protected].