Cold Lake unveils $150K childcare incentive policy amid provincial funding snub

COLD LAKE - The City of Cold Lake has approved a new incentive program to encourage the creation of childcare spaces within the community. 

The proposed Child Care Space Incentive Program could see the City invest up to $150,000 to create 100 new licensed spots, just as the province recently left Cold Lake off its priority list for funding. 

City of Cold Lake CAO Kevin Nagoya explained that the idea for the policy was shaped by a discussion at a recent Corporate Priorities Committee meeting.  

The incentive program would offer $1,500 per new licensed childcare space created, capped at $30,000 per project. The program will be funded by the municipal budget.  

The goal is to help both for-profit and non-profit operators with capital costs tied to building, expanding, or renovating childcare facilities, according to the City of Cold Lake. 

“It doesn’t matter which approach that you take, childcare space is a childcare space,” Nagoya said. “We thought we’d do a maximum exposure here, proposal of about 100 spaces program as a whole.” 

On May 15, Cold Lake was informed it didn’t make the cut for Alberta’s targeted childcare funding, a decision that City officials are now pushing back against. 

“There is a list of community priorities, and the City of Cold Lake is not one of them, despite some of the numbers and some of the issues that we’re seeing within the community, which is quite problematic,” said Nagoya. 

He shared that Cold Lake is seeking clarification from the province and plans to appeal the decision directly to the Minister of Children and Family Services. 

“I think everybody in this room would disagree with [Cold Lake not being a priority], which is quite fascinating.” 

Coun. Chris Vining expressed concern that the effectiveness of the City's new program could be limited if the new childcare spaces don’t qualify for provincial-federal subsidies. 

Nagoya clarified that the City’s grants would focus solely on capital, not operations. He also added that Cold Lake’s higher construction costs, what he dubbed the “Cold Lake factor,” make local support critical for childcare providers trying to launch or expand. 

“The grant that you see here this evening is to provide some sort of a capital grant to assist . . .  irrespective of them being profit or not-for-profit status,” he said. “Any dollar helps.” 

The policy also includes accountability measures. Half of the grant will be issued after a project is completed and licensed. The remainder will follow a second report demonstrating ongoing compliance and impact. 

Kristy Isert, General Manager of Corporate Services, said a budget amendment is scheduled for consideration at the council meeting on June 10.  

“Council will decide at that time where to fund the program from,” she explained. “We are proposing that the initial portion of the program be funded from council contingency.” 

Council approved a motion to approve the Child Care Space Incentive Program Policy, as presented.