MSI funding reduced by 3.7 per cent

The proposed 2009-2010 Alberta budget reduces funds going towards municipalities by $100 million, which translates into a 37 per cent loss in funds for the Town of Jasper.

The Municipal Sustainability Initiative (MSI), launched in 2007 as a long-term funding commitment by the province to all municipalities, has been reduced from $500 million to $400 million. The ten-year plan, coming into its third iteration, seeks to assist municipalities in meeting demands of future growth.

Jasper will receive 37 per cent less than the province projected at the beginning of this initiative. In 2009-2010, the province had projected that the municipality of Jasper would receive $1,022,312 in MSI funds. However, Jasper will now be receiving $643,292 for the year.

Not only is the municipality receiving less money than projected, but Jasper will also be receiving approximately 24 per cent less money than was allocated in 2008-2009. Jasper received $849,427 last year. This year’s MSI allocation is only $4,637 more than in the first year of the initiative’s existence.

Although some of the municipality’s capital budget projects were passed on the basis of MSI projections, municipal manager George Krefting is confident, based on changes in the economy, that approved projects will still be completed, at least in the short-term.

Council approved $750,000 in MSI funding for the provincial building renovations that provide more space for municipal administration and the Community and Family Services department. Even though the approved cost of the project is greater than the total amount of MSI funding allocated to the municipality, Krefting is confident that lower construction costs will enable the project to be completed at a cheaper rate. It is also possible that other projects will come in under budget and that will free up some cash for the renovations if needed, he added.

The project will probably go to tender in the next two weeks, said Krefting, adding that it will not be a long construction period either and that they will be “expecting” to move in for November.

Two other projects were approved by Council requiring MSI funds, which include planning for the Municipal Library expansion and lane improvement work. For library expansion planning, $20,000 was approved, but Krefting stated that they’ll be spending less than that amount. Even though $200,000 was approved for lane projects, “we only got half as many lanes as we were anticipating getting approved by the residents,” said Krefting, adding that the municipality may not need as much MSI funding as was anticipated.

The province projected a $2,435,115 allocation of MSI funds for Jasper in 2010-2011, but the long-term is unclear. Krefting asked the province if they have modified projections given that MSI is a ten year plan, but as of yet, the Alberta government has not provided any new amounts. “We don’t know what it’s going to mean for the next seven years,” said Krefting, “it could drag out our capital program.”