(ID 162019537 © Pop Nukoonrat | Dreamstime.com)

By rdnewsNOW staff

Local priorities

Budget 2025 increases funding to municipalities

Mar 19, 2025 | 2:08 PM

The Government of Alberta said if the 2025 provincial budget is passed, there will be an increase in funding to help municipalities build, maintain, and modernize public infrastructure.

With Alberta’s population rapidly growing, there are more people than ever who rely on municipal infrastructure such as roads and recreation centres.

In an effort to meet the needs of the province’s population, government officials say they’ll ensure municipalities are well positioned to support the public by increasing capital funding through the Local Government Fiscal Framework (LGFF) by over 13 per cent.

This, says the province, will provide municipalities, if the budget is passed, a predictable and reliable source of funding.

“Alberta’s municipalities are vital to our province’s identity and success so we’re supporting their growth and prosperity,” said Ric McIver, Minister of Municipal Affairs. “This year’s allocation of LGFF funds was predictable and will ensure municipalities can plan and execute their local priority infrastructure needs. This will put our municipal partners in the best position to advance the public infrastructure that their residents require.”

$20K grants available: TELUS STORYHIVE Pan-Asian Edition opens applications April 1

Mar 18, 2025

What's Happening in Lethbridge this week: February 10-16, 2025

Feb 10, 2025

What's Happening in Lethbridge this week: January 29-February 2, 2025

Jan 29, 2025

Alberta’s government says it introduced LGFF to provide a funding model that is tied to provincial revenues, as municipalities had requested.

This means when provincial revenues increase, municipal funding will also increase three years later. The government says this change makes sure that municipalities know how much funding they will receive through LGFF a year-and-a-half in advance.

“We are pleased to see LGFF funding increase by $98 million in fiscal year 2025-26, in accordance with the agreed-upon formula,” says Tyler Gandam, President, Alberta Municipalities.

“Our 264 member communities appreciate every dollar they receive from the provincial government for municipal infrastructure projects, especially as Alberta’s population continues to grow by leaps and bounds. We look forward to continuing our discussions with the Government of Alberta about how best to grow municipal infrastructure investments to meet the needs of our growing communities.”

In 2025, LGFF capital funding is increasing from $722 million to $820 million, providing municipalities across the province with more resources to advance their local priorities.

For local news delivered daily to your email inbox, subscribe for free to the Lethbridge News Now newsletter here. You can also download the Lethbridge News Now mobile app in the Google Play and the Apple App Stores.