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Funding Programs

As Edmonton struggles to contain a growing infrastructure gap, other orders of government are recognizing that Canada’s cities face a looming infrastructure crisis.

Edmonton’s efforts with other cities to make the case for infrastructure investment have resulted in significant new funding commitments from both the federal and provincial governments.

The federal government made two notable commitments: in 2004 it agreed to rebate the GST paid by municipalities, which, in Edmonton’s case, amounts to approximately $15 million every year. In 2005, the federal government announced its New Deal for Cities and Communities, which included a commitment to share gasoline tax revenues, through the provinces, with communities across Canada.

Alberta was among the first to negotiate this shared revenue agreement and its implementation will mean approximately $200 million to Edmonton over the next decade. The shared gasoline tax revenues are targeted specifically for municipal infrastructure.

In 2005, the provincial government committed $3 billion in new infrastructure funding to Alberta municipalities, of which Edmonton will receive $678 million. Over the next decade, Edmonton will receive roughly $2 billion in combined commitments from the federal and provincial governments.

These federal and provincial infrastructure funding programs have enabled Edmonton to move ahead on major projects. However, the funding programs often require cities like Edmonton to share some of the project cost, which has a significant effect on the city's capital budget and infrastructure priorities.

This new funding enables City Council to pursue “big ticket” projects that would otherwise have been indefinitely deferred, such as the southern extension of the LRT to Century Park, the 23rd Avenue/Gateway Boulevard interchange, bus rapid transit (BRT), neighbourhood infrastructure, flood prevention and new emergency facilities.

The importance of this new funding cannot be overstated; at the same time, Edmonton still has a significant shortfall. Edmonton continues to face a delicate balancing act – it must maintain and replace existing infrastructure while dealing with increased demands to support growth.