Table of contents

Overview

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 ends in 2023 and will be replaced with 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.

The change from MSI to LGFF provides an opportunity to seek input on the details of the new program, including the allocation formula and program administration. The Government of Alberta has engaged with local governments to seek their input in these areas. A public announcement of the allocation formula and program administration is anticipated later in 2023.

Funding

Budget 2023 provides capital funding under the MSI and the LGFF that will total $2 billion over the next 3 years. This includes $485 million in MSI capital funding for 2023, $722 million in LGFF capital funding in 2024, and an estimated $813 million in LGFF capital funding in 2025.

In addition, in recognition 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. This funding increase will help municipalities continue to provide municipal services Albertans need and rely on.

Funding allocations

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, and several program changes have been implemented to facilitate program closure and the transition to the LGFF in 2024.

View the Overview of the Changes to the Municipal Sustainability Initiative Program Guidelines (PDF, 341 KB) for an overview of the changes in effect for 2022 and 2023 for the MSI operating and capital components.

For more details on these changes, we encourage municipalities to review the updated MSI capital and operating guidelines.

The key program changes for MSI capital are as follows:

MSI Guidelines Section 6.2: Carrying Forward Funds

  • The time limits to spend MSI capital funding will be strictly enforced when MSI ends in 2023. Municipalities who have not expended their 2007 to 2018 allocations, including credit items on or before December 31, 2023 will be required to return those funds to the Government of Alberta and/or if applicable, the municipality will forfeit any 2007 to 2018 unpaid allocations. MSI funding, including credit items, from 2019 to 2023 will be transferred to the LGFF. Municipalities will still be able to access their 2019 to 2023 allocations under the LGFF.

MSI Guidelines Section 8: Application and Amendment Process

  • Municipalities will not be able to submit any new MSI capital projects and/or MSI capital project amendments after December 31, 2023. However, new capital projects or existing MSI projects that may require additional funding can be considered under the LGFF.

MSI Guidelines Section 8.4: Maximum Project Commitment Limit

  • The maximum amount of MSI capital funding municipalities can commit to projects is based on total MSI allocated to date (2007 to 2022), including credit items, plus the estimated 2023 MSI funding allocation (rather than the previous limit calculated at 5 times the current year allocation).

MSI Guidelines Section 10.1: Payments

  • Allocation payments will only be made in a single installment (rather than having the option of a 50% payment).
  • Allocation payments will only be issued to municipalities whose previous year's SFE reporting has been certified (rather than upon SFE submission).

The key program changes for MSI operating are as follows:

MSI Guidelines Section 6.2: Carrying Forward Funds

  • The time limit to spend MSI operating funding will be strictly enforced when MSI ends in 2023. Municipalities are strongly encouraged to expend their MSI allocation, including credit items, on/before December 31, 2023. Municipalities who have not expended their MSI operating allocations, including credit items, by December 31, 2024 will be required to return those funds to the Government of Alberta and/or if applicable, the municipality will forfeit any unpaid allocations.

MSI Guidelines Section 8.1: Payments

  • Allocation payments will only be issued to municipalities whose previous year's SFE reporting has been certified (rather than upon SFE submission).

MSI Guidelines Section 8.2: SFEs

  • Effective 2022, operating SFEs cannot be reset under any condition.

Eligibility

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.

Eligible projects

A detailed list of eligible project activities is available in the MSI capital and/or operating guidelines located in the Program resources section.

Capital projects

Eligible capital projects include municipal:

  • roads
  • bridges
  • 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

Operating projects

Eligible operating projects include:

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

Program resources

MSI capital and operating guidelines:

Additional resources:

Reporting

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

Grant recipients

Accepted projects by municipality:

Contact

Connect with the programs:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)

Connect with the MSI program:
Phone: 780-422-7125
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected] (MSI Capital Grants) or
[email protected] (MSI Operating Grants)

MSIO support or to request a MAConnect Stakeholder Agreement:
Phone: 780-644-2413
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]

Communications questions or to discuss project recognition opportunities:
Phone: 780-422-7125
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]

General Grant and Education Property Tax information:
Phone: 780-422-7125
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]

MyAlberta Digital ID for Business (MADI-B) information:
Phone: 1‐844‐643‐2789
Email: [email protected]
Website: MyAlberta Digital ID for Business

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