Municipal Sustainability Initiative

PROGRAM DESCRIPTION

The Municipal Sustainability Initiative (MSI) is the Province of Alberta’s ten year funding commitment to provide significant long-term funding to enhance municipal sustainability and to enable municipalities to meet the demands of growth.

MSI funding is provided in addition to other provincial grant programs.  All municipalities in Alberta (i.e., city, town, village, summer village, specialized municipality, municipal district, improvement district, special area, or Metis Settlement) are eligible for funding based on their MSI allocation.

Municipalities determine projects and activities to be funded by MSI 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.

FUNDING ALLOCATIONS

Each year, municipalities are advised of their annual MSI grant allocation following approval of the provincial budget.  Amounts are determined based on municipal populations, education property tax requisitions and kilometres of local roads and include base funding for all municipalities and Sustainable Investment funding for municipalities with limited local tax bases.

MSI allocation amounts by municipality  2007  2008  2009

Under the MSI, $400 million was provided to municipalities in 2007 and $500 million in 2008, $400 million will be provided in 2009.  Of the total MSI funding allocated each year, $50 million is allocated in the form of conditional operating funding.  The remaining funds are to be used towards qualifying capital projects.

QUALIFYING PROJECTS

Qualifying capital projects include municipal roads, bridges, public transit, water and wastewater systems, emergency services facilities and equipment, solid waste management facilities and equipment, regional and community airport facilities and equipment, and other municipal buildings and facilities such as recreational and sports facilities, libraries, public works buildings, and cultural/community centres.

Qualifying operating projects include capacity building activities that improve efficiency or effectiveness, municipal services, and planning activities.

Refer to Schedule 2 of the capital guidelines and Schedule 1 of the conditional operating guidelines below for a detailed listing of projects that qualify for MSI funding.

MSI capital and operating funds can be contributed to other municipalities and inter-municipal organizations for qualifying joint or regional projects, and to non-profit organizations.

CONTRIBUTIONS TO NON-PROFIT ORGANIZATIONS

Under the program guidelines, municipalities that elect to provide a portion of their funding to non-profit organizations, either directly or indirectly, are subject to additional reporting requirements and are accountable for its use and reporting.

For projects involving MSI operating funds, the municipality should provide the name of the non-profit organization, the total amount of funding provided, and the breakdown of qualifying operating expenses on the Project Profile Form.  This is described in further detail in the conditional operating guidelines.

For projects involving MSI capital funds, the municipality should complete the supplementary form (link below) which certifies that the municipality binds the organization to the same MSI program conditions that apply to the municipality.

  • Supplementary Certification Form (Non-Profit Organizations)
  • In order to satisfy the requirements of this certification, a municipality will typically enter into a contractual agreement with the non-profit organization before the contribution is made.  Municipal Affairs does not require a copy of this agreement.

WHAT'S NEW IN 2009?

A number of changes have been made to the MSI program to ensure it continues to be accountable to Albertans and meet its objectives.  Details of the changes can be found in the "What's New?" section of the capital and conditional operating program guidelines, and are effective January 1, 2009.

The 2009 program criteria includes a 10 per cent minimum threshold for capital and operating project submissions (with exceptions for joint municipality projects and contributions to non-profit organizations or libraries).  This threshold is based on a municipality's annual funding allocation and is intended to encourage larger projects that contribute to long-term sustainability and growth pressure management.

In order to receive MSI funding for 2009, municipalities are required to submit and have certified their 2007 Statement of Funding and Expenditure reports, and submit their 2008 Statement of Funding and Expenditure reports.  Project profiles accounting for all funding provided to date are also required.  This includes the 2009 allocation for capital projects.

Municipalities can carry forward unspent operating funds into the next calendar year if they are unable to complete a project.  Unspent capital funds may be carried forward a total of six years.

APPLICATION FORMS AND GUIDELINES

Enhancements have been made to the 2009 MSI capital and conditional operating program guidelines and forms.  As a result, Municipal Affairs has extended the application deadline this year.

THE DEADLINE FOR 2009 MSI PROJECT APPLICATIONS IS JULY 1.

MSI CAPITAL

MSI CONDITIONAL OPERATING

  • 2009 Program Guidelines pdf
  • 2009 Project Profile Form fillable form (note: once saved, it may not be possible to edit data on this form)
  • Statement of Funding and Expenditures Form (for 2008 expenditure year) pdf, fillable form
  • Statement of Funding and Expenditures Form (for 2007 expenditure year) pdf, fillable form

For more information, please contact a Grant Policy Advisor, or for compliance reporting requirements, contact a Grant Compliance Advisor at the following:

Municipal Grants and Information Services Unit
Municipal Services Branch
Alberta Municipal Affairs
17th Floor, Commerce Place
10155 - 102 Street
Edmonton, Alberta T5J 4L4

Phone: (780) 427-2225
Dial 310-0000 for toll-free connection in Alberta
Fax: (780) 422-9133
E-mail: ma.msicapitalgrants@gov.ab.ca or
            ma.msioperatinggrants@gov.ab.ca

TANGIBLE CAPITAL ASSETS GRANT

A one-time Tangible Capital Assets (TCA) grant was provided under the MSI to help local governments comply with national accounting standards.  This funding was provided in addition to the 2007/08 MSI capital and operating allocations, and available to municipalities with populations under 20,000.

Under the TCA grant, municipalities are required to submit a statement of benefits and expenditure summary (for 2008 expenditure year) no later than May 1, 2009.

  • TCA Statement of Benefits and Expenditures Form pdf

If you have not already done so, please return a completed Statement of Benefits and Expenditures Form by email to Christina.Parkins@gov.ab.ca or by mail to the Municipal Services Branch at the address provided above.  Questions regarding the TCA can be directed to a Financial Advisor at (780) 427-2225, toll-free by dialling 310-0000 first.