A Moment with the Mayor: Municipal Funding

Municipalities across Canada have limited revenue streams to meet the growing needs and expenses of day-to-day operations. After property taxes, the second-largest source of revenue comes from provincial and federal grants.

These grants vary in size and are often tied to specific criteria. Per-capita grants, for example, are based on population. In Lloydminster’s case, provincial funding is received from both Alberta and Saskatchewan, but only for the number of residents declared in each province. The City does not receive funding twice on the same residents, and neither province funds the entire population of the city.

Each province offers a variety of grant programs. City staff prepare applications regularly, some for one-time projects or initiatives, others for annual funding that must be reapplied for every year.

The federal government also provides a range of grant programs. Some transfer money directly to provinces, which then distribute it to municipalities. The Canada Community Building Fund, formerly known as the federal Gas Tax Fund, operates this way. Other federal programs are administered through the Federation of Canadian Municipalities (FCM). These often align with the priorities of the federal government of the day—recent examples include housing, where major cities are facing critical shortages, and water and wastewater services, where municipalities continue to struggle to keep pace with demand.

Lloydminster has been fortunate to secure federal support for its two largest infrastructure projects: the Wastewater Treatment Facility and Cenovus Energy Hub. The City will continue applying for federal and provincial funding whenever it benefits residents and neighbouring communities.

Not every application has been approved, but that has not lessened the City’s determination. Lloydminster remains committed to pursuing all opportunities that support local priorities, improve quality of life and strengthen advocacy with both provincial governments and at the federal level.

Mayor Gerald S. Aalbers
City of Lloydminster