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Part of Local Government Fiscal Framework

Local Government Fiscal Framework – Capital funding

Legislated infrastructure funding program for local governments in Alberta.

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Local Government Fiscal Framework

Overview

This component of the Local Government Fiscal Framework (LGFF) program provides capital funding to local governments to support projects that:

  • develop, improve, maintain, or otherwise alter infrastructure assets in Alberta communities
  • facilitate the resiliency and livability of local communities
  • support local and provincial economic activities

Funding is transparent, predictable and easy to administer, all while being accountable to Albertans.

Funding

2024

Local governments will receive $724.2 million. This includes a one-time $2.2 million funding top-up to ensure no local government experiences a year-over-year decrease from capital funding allocated under the Municipal Sustainability Initiative in 2023.

Of the $724.2 million in funding, $382 million will be provided to the cities of Calgary and Edmonton, and $342.2 million will be provided to the remaining local governments. Funding amounts in subsequent years will reflect the percentage change in provincial revenues from 3 years prior.

2025

LGFF funding will increase by more than 13% from the 2024 level, in line with growth in provincial revenues between 2021-22 and 2022-23, making $820 million available to Alberta communities. Of that, Calgary and Edmonton will receive $434 million and remaining local governments will receive $386 million.

2026

There will be $800 million in LGFF funding available to Alberta communities, with $423 million allocated to Calgary and Edmonton, and $377 million allocated to remaining local governments. Compared to 2025, this is a decrease of 2.5%, in line with the decrease in provincial revenues between 2022-23 and 2023-24.

The LGFF Act requires that information on future funding levels is shared by September 30, 2 years prior to the funding year.

Funding is allocated between Calgary and Edmonton based on the funding formula outlined in the act. Under this formula, funding is calculated based on:

  • population (48%)
  • education tax requisitions (48%)
  • kilometres of local roads (4%)

The remaining local governments receive funding determined by a formula based on:

  • population (65%)
  • tangible capital assets (15%)
  • amortization of tangible capital assets (10%)
  • kilometres of local roads (10%)

In addition, the remaining local governments receive base funding and those with a population less than 10,000 and a limited local assessment base receive needs-based funding on top of their regular allocation. The needs-based funding envelope is set at 3% of total funding and is distributed to local governments based on equalized assessment.

LGFF Capital allocation amounts:

View 2024, 2025 and 2026 allocations by local government.

Eligibility

All local governments are eligible for capital funding, except for improvement districts without resident populations. Eligible local governments include municipalities, Metis Settlements and the Townsite of Redwood Meadows.

Local governments determine projects and activities that align with the criteria in the program guidelines and are encouraged to take a long-term approach to planning for capital projects.

Eligible capital projects include:

  • roads and bridges
  • public transit vehicles or facilities
  • emergency services facilities or equipment
  • water and wastewater systems
  • solid waste management facilities or equipment
  • other municipal buildings such as recreation and sports facilities, libraries, and cultural and community centres

How to apply

The LGFF Capital online portal has now launched and is accepting LGFF capital applications. 

The LGFF Capital online portal is available through MAConnect, the web portal that provides Alberta government staff and external stakeholders with secure access to Municipal Affairs’ key business applications. 

You can request access to LGFF Capital online through your municipal MAConnect stakeholder administrator. Local governments that need to update their stakeholder administrator will have to submit a new stakeholder agreement before requesting access to LGFF Capital online. 

To request a stakeholder agreement or for LGFF Capital online support:

Phone: 780-644-2413 
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]

Guidelines and resources

Contact

Connect with the LGFF program:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-422-7125
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]

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