The City of Lethbridge says it is pleased to see some provincial funding being restored under the Grants In Place of Taxes program. (Photo: Lethbridge News Now)

By David Opinko

City of Lethbridge pleased with restoration of funds under provincial program

Mar 6, 2025 | 12:01 PM

Municipalities are set to receive more money this year thanks to one change in the 2025 Alberta Budget.

The provincial government plans to increase the portion local governments receive under the Grants In Place of Taxes (GIPOT) program.

Properties belonging to the Government of Alberta, such as provincial buildings, schools, hospitals and others, are exempt from municipal property taxes. The province, instead, gives municipalities grant funding.

Starting in 2025-26, GIPOT funding will be paid to municipalities at 75 per cent of the property tax amount that would be owed, equivalent to $55 million. Next year, that will increase to 100 per cent.

For the City of Lethbridge, this means revenues will rise by approximately $290,000 in 2025 and $585,000 in 2026.

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This follows several years of GIPOT funding reductions. Between 2018 and 2024, it was cut by around $614,000, a drop of nearly 50 per cent across five years for the city.

Lethbridge Mayor Blaine Hyggen says the restoration of funds under the GIPOT program is welcome news.

“We appreciate that the Government of Alberta has heard the concerns we and other Alberta municipalities have expressed about the need to restore full GIPOT funding,” says Hyggen.

He adds, “Lethbridge has the highest percentage of tax-exempt provincial properties in the province. We are at about 18 per cent, compared to between 10 and 12 per cent for most of the rest of Alberta. Of course, we are proud to have quality schools, post-secondary institutions, and other provincial facilities in our city. They help make Lethbridge a service hub for southern Alberta, and so the GIPOT funding restoration is great news.”

The 2025 provincial budget has garnered mixed reactions from Lethbridge’s politicians. Hyggen was pleased to see several local investments, while Lethbridge-West MLA Rob Miyashiro says the budget fails to keep up with the target of inflation plus population growth.

READ MORE: Lethbridge mayor pleased with local investments in new Alberta budget

READ MORE: “Cuts, chaos and corruption” in Alberta budget, says MLA Miyashiro

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