Municipalities have been allocated more than $15.2 billion since the Municipal Sustainability Initiative (MSI) program launched in 2007. Communities have been able to build and rehabilitate:
- roadways and bridges
- water and wastewater systems
- public transit facilities
- recreation and sport facilities
- other key local priorities
Future of MSI
MSI is ending soon and will be replaced by the Local Government Fiscal Framework (LGFF) beginning in 2024. The LGFF will include $722 million in capital funding legislated under the Local Government Fiscal Framework Act and non-legislated operating funding.
A public announcement of the LGFF allocation formula, individual municipal allocations, and program administration is anticipated later in 2023.
Budget 2023 provides capital funding under the MSI and the LGFF that will total $2 billion over the next 3 years. The Budget provides $485 million in MSI capital funding for the year 2023 and replacing MSI with the new LGFF Capital program in 2024 at a baseline funding amount of $722 million.
Budget 2023 also increased the LGFF revenue index factor, which means that subsequent years’ funding will shift by the full percentage change in provincial revenue, rather than 50%. This means the total LGFF funding will rise to $820 million in 2025, an increase of $98 million compared to 2024.
In addition, because of increased operating costs due to high inflation and other fiscal pressures, the MSI operating budget has increased from $30 million to $60 million annually, which will continue under the LGFF Operating program. This funding increase will help municipalities continue to provide municipal services Albertans need and rely on.
MSI funding is distributed to municipalities after legislative approval of the program budget, submission of sufficient project applications, and certification of Statements of Funding and Expenditures (SFEs).
Use of all funding must follow the terms and conditions outlined in the MSI capital and operating guidelines.
Allocation amounts by municipality:
View 2023 and prior years' MSI allocations.
Transition of MSI to LGFF
2023 is the last program year for MSI. Additional program changes have been implemented to facilitate program closure and the transition to the LGFF in 2024.
Municipalities will continue to access their unspent MSI funding including credit items through the existing MSIO system. Any unspent MSI funding from prior to 2019 must be returned to the province. Municipalities will continue to submit projects, amendments, and reporting via the MSIO system until they have used all available MSI funding and met all MSI program reporting requirements.
Details can be viewed in the new Municipal Sustainability Initiative Program Guidelines Addendum - September 2023. It takes effect in 2023 for the MSI capital component.
The changes above affect section 6.2 and section 8.0 and supersede the associated changes listed in the Overview of the Changes to the Municipal Sustainability Initiative Program Guidelines, which lists a number of changes in effect for 2022 and 2023 for the MSI operating and capital components. All other changes listed in this Overview remain in place.
All municipalities in Alberta are eligible for funding based on the terms set out in their long-term MSI funding agreement. For the purpose of municipal grants, improvement districts, special areas, Metis Settlements and the Townsite of Redwood Meadows are considered municipalities.
Municipalities determine projects and activities to be funded based on local priorities within the general criteria set out in the program guidelines and are encouraged to take a long-term approach to planning for capital projects. Municipalities may choose to contribute funds for use towards eligible MSI projects to other municipalities, regional services commissions or non-profit organizations.
A detailed list of eligible project activities is available in the MSI capital and/or operating guidelines located in the Program resources section.
Eligible capital projects include municipal:
- public transit vehicles or facilities
- emergency services facilities or equipment
- water and wastewater systems
- solid waste management facilities or equipment
- regional and community airport facilities or equipment
- other municipal buildings such as recreation and sports facilities, libraries, public works buildings and cultural and community centres
Eligible operating projects include:
- capacity building activities that improve efficiency or effectiveness
- municipal services
- planning activities
- assistance to non-profit organizations
MSI capital and operating guidelines:
- Municipal Sustainability Initiative Capital Program Guidelines Addendum – September 2023
- Overview of the Changes to the Municipal Sustainability Initiative Program Guidelines
- MSI Capital Application Guide – Question 4: Functional Project Category (PDF, 159 KB)
- MSI Capital Application Guide – Question 5: Resulting Capital Asset (PDF, 147 KB)
SFEs for the 2023 program year are due by May 1, 2024.
These documents are not accepted through email, fax, or post. A signed copy of the documentation is not required.
MSI capital reporting
All MSI capital documentation, including MSI capital project applications and amendments, and capital SFEs, must be submitted through the Municipal Sustainability Initiative Online (MSIO) system within MAConnect.
See the MSIO Capital SFE User Guide (PDF, 564 KB) for additional information, MSIO system support contact information is also available under the Contact section below.
MSI operating reporting
All MSI operating documentation including SFEs must be submitted through the MSI Operating Portal.
The new MSI Operating Portal is accessed through the MSIO system within MAConnect. Once in MSIO, you must click on the red MSI-Operating 2022-2023 SFEs hyperlink in the top right corner to access the new online portal.
To meet the Government of Alberta’s security requirements, and access to the new portal, you will then be required to login to your MyAlberta Digital ID for Business (MADI-B) account.
See the MSI Operating Portal User Guide (PDF, 1.3 MB) for additional information. MADI-B support contact information is also available under the Contact section below.
Request access to MSIO
Access to MSIO is available through MAConnect, the web portal that provides Government of Alberta staff and external stakeholders secure access to Municipal Affairs' key business applications.
You can request access to MSIO through your municipal MAConnect Stakeholder Administrator. Municipalities that need to update their Stakeholder Administrator will have to submit a new Stakeholder Agreement before requesting access to MSIO.
To request a Stakeholder Agreement or for MSIO support, see the Contact section.
MSI IT system user guides
- MSIO Capital Application User Guide (PDF, 2.7 MB)
- MSIO Capital SFE User Guide (PDF, 564 KB)
- >MSI Operating Portal User Guide (PDF, 1.0 MB)
- MADI-B Account Sign Up Guide (PDF, 603 KB)
Accepted projects by municipality:
- MSI – Capital: Accepted Projects Report
- MSI – Operating: Report on Government-wide Objectives for Municipal Grant Funding
Connect with the programs:
Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
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