A Moment with the Mayor: The Alberta Budget

The Alberta government recently introduced its 2025-26 budget, which will take effect on April 1, 2025. I had the opportunity to be present in the Alberta Legislature for the budget speech, delivered by Finance Minister Nate Horner. He made it clear that Alberta is facing challenging times, with looming tariffs, potential fluctuations in oil prices, and a growing population that requires expanded health care and education services.

Recognizing the challenges of recent years, the government has allocated additional reserves to help protect Albertans from wildfires and other potential crises.

The budget is a comprehensive document supported by business plans for each government department. While I have not yet had the opportunity to review the full budget in detail, we are fortunate to have several organizations and groups that help break down how it affects municipalities like ours.

The budget included a few positive developments for Lloydminster. Through the Local Government Fiscal Framework (LGFF), we will see an increase in funding for 2025-26. However, as this funding is tied to provincial revenues, projections indicate a drop in 2026-27.

Another key change is the increase in Grants in Place of Taxes (GIPOT), a program that provides funding to municipalities with provincial government properties within their boundaries. The GIPOT rate will rise from 50 per cent to 75 per cent this year, with a further increase to 100 per cent in the following budget year. For Lloydminster, this means an additional $20,000 in revenue over two years—while not a significant amount, it does vary by municipality.

Budget details are still emerging as ministers and departments finalize their respective allocations. Additional support may be available through grants or project approvals, and we are monitoring these developments closely.

Unfortunately, the budget also included some less favourable news. The Alberta government will be increasing the school portion of property tax bills across the province by approximately 6.3 per cent on properties in the upcoming year.

Another setback is the withdrawal of the Local Growth and Sustainability Grant, a three-year, $20-million annual funding plan for fast-growing communities. This funding, announced just last year, has now been cancelled. Lloydminster and several other municipalities had applied for these grants, which are now no longer available moving forward.

Additionally, this budget did not include infrastructure funding for the new Cenovus Energy Hub. We remain hopeful and committed to securing provincial support for this critical project, and I will share more details in the coming weeks.

As always, we will continue to advocate for Lloydminster and work with the Alberta government to ensure our community receives the necessary support.

Mayor Gerald S. Aalbers
City of Lloydminster