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Monday , 28 September 2020

M.D. Council Provides Funding Support to Neighbouring Urban Municipalities

Municipal District of Bonnyville Council agreed to annually contribute $5 million to its three neighbouring urban municipalities – Town of Bonnyville, Village of Glendon and the City of Cold Lake – to help ensure their continued sustainability, and support services used by M.D. residents in each community.

Under the Inter-Municipal Cooperation Program (IMCP) funding formula, in 2016 the Town of Bonnyville can access $3.8 million, the Village of Glendon can access just over $500,000 and the City of Cold Lake will receive $645,800.

The Inter-Municipal Cooperation Program funding formula used to distribute the annual funding is developed to ensure a level playing field for all three urban neighbours. The formula is based on per capita equalized assessment. Currently Cold Lake has almost twice the assessment as Bonnyville and roughly three times the assessment of Glendon. Equalizing the assessment per capita ensures each municipality has a base level of funding to provide services.

The per capita population formula is based on the 2011 federal census. The next federal census will be done in 2016. Assessments are based on Alberta Municipal Affairs current year equalized assessments.

A portion of the funds, 30 percent, will have no strings attached and can be used by the municipalities to pay for the operation of any facilities or service, such as recreation. The remaining funds will be allocated to match capital funding dollars for designated projects – 40 percent must go to Roads, Water and Sewer projects and 30 percent is allocated for recreation and other projects. Allocating funds based on the service/project type ensures some of the funds go to hard infrastructure which promotes the long-term sustainability of the municipalities.

Matching project dollars are based on the M.D.’s population percentage in each service area. The Town of Bonnyville capital projects will receive 47.5 percent funding, the Village of Glendon capital projects receive 72.1 percent funding and the City of Cold Lake capital projects receive 18.9 percent funding.

Funding under the Inter-Municipal Cooperation Program will be reduced by the funding provided under some existing programs, such as the Regional Community Development Agreement, the Bonnyville and District Centennial Centre Part Nine Agreement and the Bonnyville Airport Agreement. This was done to equalize the funding provided to our three urban neighbours.

The minimum funding shall be no less than $200 per capita for each municipality, based on the number of M.D. residents in its service area. If the minimum funding applies, the funds will be allocated as operating funds under the Inter-Municipal Cooperation Program. The minimum funding amount was established to recognize that M.D. residents use infrastructure and services in our neighbouring municipalities.

Funds for each municipality stay in the Inter-Municipal Cooperation Program for a maximum of three years. The M.D. may cancel or change the funding at any time based on budget restrictions.

Municipalities will have to apply in writing for capital funding on a project basis. The operating funds will be paid in installments – 50 percent by February 15 of each year and the balance by September 30 of each year.

*Press Release from the MD of Bonnyville

About Jena Colbourne

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