Broadening Scope of Off-Site Levies
IT IS THEREFORE RESOLVED THAT Alberta Municipalities advocate to the Government of Alberta to amend the Municipal Government Act to broaden the scope of infrastructure eligible for off-site levies to better reflect the full range of growth-related infrastructure required to support new development, where municipalities can demonstrate a clear connection between growth and the infrastructure required, in a manner that maintains transparency, predictability, and fairness for municipalities, developers, and residents.
WHEREAS section 648 of the Municipal Government Act authorizes municipalities to impose off-site levies on new development to recover a portion of growth-related infrastructure costs;
WHEREAS the scope of infrastructure eligible for off-site levies remains limited and does not fully reflect the capital infrastructure required to support growth and complete communities;
WHEREAS population growth creates demand for additional municipal capital infrastructure, including but not limited to outdoor recreation amenities, municipal operations facilities, and transit infrastructure required to deliver services to expanding communities;
WHEREAS when growth-related infrastructure costs cannot be recovered through off-site levies, municipalities must rely on general taxation or other funding sources, resulting in existing taxpayers subsidizing infrastructure required for new development; and
WHEREAS municipalities require flexible and modern legislative tools to ensure that growth-related infrastructure costs are shared fairly, transparently, and in a manner that supports desired and livable communities.
BACKGROUND:
Municipalities across Alberta are experiencing sustained growth and increasing demand for infrastructure to support new communities. Off-site levies have, and continue to be, a key tool that allow municipalities to recover a portion of growth-related capital costs. However, under the current framework in the Municipal Government Act, the scope of infrastructure eligible for recovery remains too restrictive.
While the Municipal Government Act enables recovery of core infrastructure such as water, wastewater, stormwater, roads, transportation infrastructure, community recreation facilities, fire halls, police stations, and libraries, it does not fully capture the range of infrastructure required to support growth.
As communities expand, municipalities must invest in additional infrastructure to deliver services and support complete communities. This includes:
outdoor recreation infrastructure (e.g., sports fields, courts, and community-use amenities);
transit infrastructure (e.g., fleet storage, transit hubs, and supporting facilities);
municipal operations facilities (e.g., public works yards and fleet maintenance facilities); and
other capital infrastructure required to deliver municipal services to growing communities.
These investments are often directly driven by growth. Where growth-related infrastructure falls outside current off-site levy eligibility, municipalities must fund these investments through general taxation, reserves, or other sources. As a result, existing taxpayers often bear a disproportionate share of the costs required to support new development, effectively subsidizing growth. This misalignment can create financial pressure for municipalities and undermine the principle that growth should contribute to the infrastructure it necessitates. Expanding eligibility would help correct this imbalance by better aligning costs with the drivers of growth.
This challenge affects municipalities across Alberta, particularly those experiencing sustained or rapid growth. Municipalities experiencing growth face increasing pressure to align infrastructure funding with development while maintaining financial sustainability.
ABmunis previously raised this issue through a resolution calling on the Government of Alberta to expand the scope of off-site levies. While subsequent amendments have broadened eligibility in certain areas, the current framework still does not fully reflect the range of infrastructure required to support growth.
Broadening the scope of off-site levy eligibility would provide municipalities with a more complete tool to align infrastructure funding with growth. It supports a “growth pays for growth” approach and improves transparency in how costs are allocated.
Municipalities would continue to demonstrate a clear connection between development and the infrastructure being funded, ensuring levies remain appropriate and justifiable, while expanded eligibility would provide greater flexibility within a framework that maintains accountability.
This approach aligns with provincial objectives to support housing and community growth. Providing municipalities with effective infrastructure funding tools supports timely development, reduces long-term financial pressures, and helps build desirable, livable communities across Alberta.
ABmunis is preparing correspondence to the appropriate ministry.