Photo: Government of Alberta

By Shane Clausing

Helping Municipalities

Province announces $1.1 billion stimulus program for municipalities

Jul 28, 2020 | 1:15 PM

The Alberta government announced Tuesday that municipalities in the province will receive $1.1 billion to help build core infrastructure that will get Albertans working, while supporting municipal and public transit operating costs.

The investment is part of the federal and provincial government’s $606 million Safe Restart Agreement, which will help municipalities maintain public services like transit operations and other operating costs.

As part of the agreement, the province will match $233 million in federal funding to support municipal operating costs during the pandemic and $70 million to help support public transit operating costs.

$500 million of that investment, which was previously earmarked by the province, will go towards shovel-ready infrastructure projects. That stimulus program is expected to boost municipal infrastructure funding by almost 30 per cent and will create an estimated 2,500 jobs from projects that will begin construction in 2020 or 2021.

Alberta Premier Jason Kenney says while the future is unknown, this will help municipalities who have been on the frontlines of the pandemic.

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“The past five months have been tough for Albertans as we faced the global coronavirus recession, the unprecedented collapse of energy prices, and the COVID-19 pandemic. This investment will provide municipalities with the funding they need to get through this crisis, create good jobs now, and build the infrastructure that will fuel economic growth in our province for generations to come.”

Calgary Mayor Naheed Nenshi says this investment was much needed.

“The effects of the COVID-19 pandemic have forced Alberta’s municipalities into a position where we need operating assistance for the first time ever. This partnership will not only allow us to meet our immediate operating concerns, but will also create jobs while providing needed infrastructure within our city”

The $500-million investments is a part of more that $10 billion in infrastructure spending announced as part of the provinces recovery plan.