ABmunis proposes a municipal growth and tariff response program

The Government of Alberta’s first-quarter fiscal update is now forecasting a $2 billion surplus for the 2026-27 year. Provincial leaders have stressed the value of investing in one-time capital projects when the province runs a surplus. In response, Alberta Municipalities (ABmunis) has delivered a proposal to the Honourable Dan Williams, Minister of Municipal Affairs, calling for the creation of a one-time Municipal Growth and Tariff Response Program.  

Details of ABmunis’ proposal are: 

• 10% of the 2026-27 surplus (approximately $200 million) should be invested in the Municipal Growth and Tariff Response Program. 
• The funding should be directed to core projects involving water, wastewater, stormwater, roads, bridges, public transit, sidewalks, and facilities and equipment for fire and police.  
• All municipalities should receive funding through an allocation formula.  

Our proposal is similar to the former Municipal Stimulus Program that was successfully implemented by the province in 2020.  

Background and Context for ABmunis’ Proposal 

Since 2020, Alberta’s population has grown by 675,000 people with 90% of new dwellings built in Alberta’s cities, towns, villages, summer villages, and specialized municipalities. This growth creates significant pressure to upgrade municipal roads, transit, and water and wastewater systems to accommodate the additional people, businesses, and vehicles while simultaneously addressing regular maintenance on deteriorating infrastructure.  

This also comes at a time when U.S. tariffs on steel, industrial machinery, and other products are driving up the costs for municipalities to fix and replace local infrastructure, facilities, and equipment.  

Provincial funding per capita to municipalities has also trended down since 2010 and a one-time investment would help respond to the increasing costs and delays in key infrastructure projects.  

The Government of Alberta budgeted for a $9.4 billion deficit for 2026-27 but due to higher than expected revenue from oil and gas royalties, the province is now forecasting a surplus of $2 billion for the 2026-27 fiscal year. 

Request to ABmunis members 

Provincial leaders will receive numerous requests from many sectors and organizations. To maximize the success of any 2026-27 surplus funds being invested in your community, ABmunis encourages our members to promote ABmunis’ proposal when you meet with MLAs, ministers, or other provincial officials. In those conversations, make a point of providing examples of how you would use that funding on essential local infrastructure and how it would make a difference for your community. Questions regarding ABmunis’ proposal, you can contact our advocacy [at] abmunis.ca (Advocacy Team).