The Alberta government says it will be looking into alternative ways for municipalities to finance critical infrastructure without raising taxes.
While visiting Jasper on June 23, the province’s Municipal Affairs Minister, Dan Williams, announced the creation of a new minister’s council. The council, Williams said, will identify new tools for funding infrastructure. The initiative will include municipal leaders and building industry representatives from BILD Alberta.
“I want to look at ways to try and make sure we’re building and we’re building for the future,” Williams said. “I don’t want it to have to result in more property taxes or an increase in provincial and national taxes, through effectively grants, so I’m looking at new and innovative solutions.”
Williams described how many Alberta communities are facings a growing gap in infrastructure, citing how Calgary has suffered from two major water main breaks in recent years.
He also noted how tourism puts increased pressure on Jasper’s infrastructure. According to a 2022 report prepared for Banff, Canmore and Jasper, Jasper spent $6.5 million, 32 per cent of its expenditures, to support its visitor population in 2021.
“We have to make sure that we’re proportionately supporting that infrastructure and that it’s maintained and that it continues to operate to serve Canadians from coast to coast to coast, as a national park should,” Williams said.
The Municipality of Jasper has argued the Province should account for Jasper’s shadow population of visitors and seasonal workers when it comes to infrastructure funding. British Columbia does this by designating some communities as resort municipalities, which provides them with additional funding for visitor services and infrastructure.
Williams said the minister’s council wouldn’t consider options that resulted in more taxes and levies but rather options such as municipal bonds or having smaller municipalities come together to collectively borrow and spend at scale.
“I’m not saying every tool is a solution to every problem, but right now, I think we’re limiting what our municipalities can use,” he said. “I want to look at what other jurisdictions have done that doesn’t result in a higher tax burden but says there’s a smarter way of financing and investing in these big projects.”
The three-year Budget 2026 capital plan includes $7.1 billion toward municipal infrastructure. Through the Local Government Fiscal Framework (LGFF), the Province will provide $820 million in 2025 and $800 million in 2026 to communities for local infrastructure.
Williams assured that exploring alternative funding tools was not an attempt to download more costs onto municipalities and that his office would not be touching LGFF funding.
“This is not about robbing Peter to pay Paul or changing where the money and funding comes from,” he said. “This is about adding more tools and more potential access to capital for projects.”
Williams said the minister’s council will decide the first meeting date, but he hoped to receive feedback before the end of the year.
Jeff Acker, chair of Alberta Mid-sized Cities Mayor’s Caucus and mayor of Spruce Grove, said during the announcement that this “proactive step” would allow mid-sized municipalities to meet the infrastructure needs of growing communities.
“By exploring new approaches and opportunities through the minister’s council, we can help ensure municipalities have the flexibility and tools they need to build for our future,” Acker said.
Scott Fash, CEO of BILD Alberta, added how growth only occurred when communities had core infrastructure such as roads, water, sewer and storm water pipes, and upfront costs remain a major hurdle for development that must be borne by either municipalities or developers.
“We need to explore additional financing models that support more cost-effective and timely delivery of all types of infrastructure,” Fash said.
Bob Covey // bob@thejasperlocal.com
