Insurance, water infrastructure and fire services top 2026 budget concerns

The County of St. Paul is urging the Alberta government to step in as rising insurance premiums, aging water infrastructure, and escalating fire service costs place a growing strain on rural municipalities and community groups.

The county council submitted its concerns as part of the province’s 2026 budget consultation on Jan. 13, outlining what it described as mounting pressures that local governments cannot absorb on their own.

Insurance premiums are hitting community groups the hardest

One of the County’s primary concerns is the sharp increase in insurance premiums affecting community-owned facilities.

The County currently helps to insure 18 community buildings, including agricultural society halls and recreation facilities. Council warned that rising premiums are consuming a growing share of operating budgets, leaving less funding available for programming, maintenance, and events.

In its submission, the County cited recent examples in which groups were forced to redirect funds from community activities simply to remain insured. In 2024, the County provided an unbudgeted $35,000 contribution to the Mallaig Ag Society to cover insurance costs.

The County noted that without that support, the facility would not have been able to operate for the year.

During council discussion, Reeve Glen Ockerman highlighted the long-term trend, stating that insurance costs for County facilities have increased dramatically over the past decade and warned of the ripple effects on rural communities.

County of St. Paul CAO Jason Wallsmith acknowledged that the province does not regulate the insurance market, but said it still has a role to play in understanding the impacts being felt at the local level.

Aging water and wastewater systems

The County is also calling for renewed provincial investment in water distribution and wastewater collection systems in Ashmont and Mallaig.

According to the County’s infrastructure replacement plan, the estimated cost to replace these systems was $23 million in 2021. Council noted that the figure is likely significantly higher today due to inflation and rising construction costs.

Under current projections, approximately 45 per cent of the replacement costs would need to be covered through local tax revenue, reserves and utility rates.

In its submission, the County urged the province to reinstate programs such as the former Water and Wastewater Funding Program to help ensure long-term sustainability for rural and small urban communities.

Fire services costs are climbing fast

Fire services were also flagged as a growing financial concern, particularly for volunteer departments.

The County is seeking a dedicated provincial funding program to help rural fire departments replace and upgrade critical equipment such as rescue tools, air packs, and apparatus.

Council cited major cost increases across all four County fire departments in Ashmont, Elk Point, Mallaig and St. Paul. A standard fire pumper that cost approximately $485,000 in 2019 now exceeds $830,000.

Replacement timelines are further complicated by national safety standards, which limit how long equipment can remain in service. While some apparatus can be maintained beyond standard lifespans, municipalities are still required to meet NFPA replacement requirements.

The County also noted that rural fire departments are increasingly called upon to assist with wildfire response outside their jurisdictions, often without corresponding increases in funding.

Budget consultation closed

The province’s 2026 budget consultation closed on Jan. 15. The County of St. Paul said it hopes its submission will help highlight the financial realities facing rural municipalities and lead to targeted provincial support in the upcoming budget.