LAKELAND - The $17.2 million increase to the Grants in Place of Taxes program in the 2025/26 Alberta budget means increased revenues for municipalities with provincially owned buildings in their borders.
According to Town of St. Paul CAO Steven Jeffery, currently the provincial government only pays 50 per cent of the taxes owed to a municipality.
“Budget 2025 has increased that amount to 75 per cent and the GOA announced yesterday afternoon that 2026 will be reinstated to 100 per cent,” said Jeffery.
For the Town of St. Paul, this means $59,000 in 2025 and $118,000 in 2026.
“So, a very welcomed change from the province,” said Jeffery.
Grants in Place of Taxes funding is now at $55.3 million in 2025.
The provincial budget includes $820.4 million for Local Government Fiscal Framework funding. According to Jeffery, municipalities have known their allocations under that program for some time now.
He said the main difference in the calculation “is that it's based on the success of the province from a revenue perspective from three years prior. If the province makes more money, then generally speaking, municipalities should receive more dollars to put toward Capital.”
Jeffery said they would be watching closely for any changes that could further impact municipal service delivery.
Jihad Moghrabi, the communications manager for Lac La Biche County confirmed staff are still processing the provincial budget to assess the impact on Lac La Biche.
“We are always working diligently to plan for the future, and we work closely with the Province to ensure that Lac La Biche County has access to the resources we need to provide top-quality, efficient services for our residents,” said Moghrabi.
Lakeland This Week reached out to other municipalities for comment but had not heard back as of Monday's press deadline.
