Phillips: “wins” and “losses” for Rocky Mountain House in Alberta Budget 2025

There were some ‘wins’ and some ‘losses’ for Rocky Mountain House in Alberta Budget 2025.

That’s according to Rocky Mountain House Acting Mayor Len Phillips, who has now had some time to pour over the numbers.

For the win column, Phillips points to Local Government Fiscal Framework (LGFF) funding which saw a 13 per cent bump— up to $722 million. Phillips says LGFF is critical to municipalities, as it’s typically predictable funding to allow budgeting for ongoing infrastructure work and maintenance.

However, he says while the increase is good, the LGFF funding is still well below the previous Municipal Sustainability Initiative (MSI) funding. “We’re still dealing with fewer dollars than we previously had”, he says.

In a release, Alberta Municipalities (AB Munis) says multibillion dollar infrastructure gap is growing, thanks to rapid population growth and increased wear and tear on municipal infrastructure like roads, bridges, and wastewater treatment plants.

As a major ‘win’, Phillips says he was pleased to see the Alberta government fully restoring the Grants In Place Of Taxes (GIPOT) funding model to pre-pandemic levels by 2026.

The GIPOT program allows municipalities to raise revenue from properties owned by the Government of Alberta, which are exempt from municipal taxation. In return, municipalities receive a grant instead of property taxes on eligible government-owned properties within their boundaries.

The GIPOT increase was advocated for in a resolution at the fall Rural Municipalities of Alberta (RMA) conference by the Town of High Prairie, and called for the provincial government to restore GIPOT funding to 2019 levels of $60 million.

Over the last five years, data shows over $270,000 has been added to Rocky residents’ tax bills due to GIPOT underfunding. Edmonton, meanwhile says it has lost out on around $80 million since 2019.

–

READ MORE

Rocky Mountain House to provide data on GIPOT underfunding impact

–

For the ‘L’ column, Phillips expressed dismay that the budget included no new spending on Family and Community Support Services (FCSS)— especially at a time when there’s increasing need for social assistance.

“When it comes to social needs of the community, residents are looking more and more to municipalities for, and the dollars just aren’t there,” says Phillips.

He adds, it’s difficult for municipalities to get into social programs when their traditional realm has been things like road, water and sewer maintenance, facility staffing and recreation— especially with lower levels of funding from the province.

He says the budget has only seen one small increase since 2016, which he equates to a large decrease due to rising inflation.

FCSS funding is set at $105 million for the fiscal year 2025-2026.

–

READ MORE

–

Phillips was also pleased to see continued funding for the Highway 11 twinning to Rocky. Although, he adds he’s not sure which segment will be focused on this year— as the last confirmation the town received was the stretch from Benalto to Hwy 22.

The province has budgeted $50 million for the project this year, part of $208 million over the next three years.

–

RELATED

- - $50 million in Alberta Budget 2025 for Highway 11 twinning to Rocky Mountain House
  - Province eyes 2026 construction start for Hwy. 11 twinning near Rocky

–

Notably, he says an alarming “L” included the Education School Tax being increased on municipalities.

“Many don’t realize that your municipal tax bill has two components: there’s the municipal side which goes to the Town of Rocky Mountain House, and there’s the school tax portion that goes to the provincial government.” Phillips explained.

In 2025, he says the provincial government increased the school tax bill by 6.3 per cent, with an anticipated 10 per cent increase in 2026- an increase, he says, that will be borne by residents of Rocky Mountain House.

Phillips says it’s “disappointing” that residents will notice an increase on tax rolls that’s out of the town’s control.

He says further discussions will be happening in the weeks to come, including discussions with council about possibly bringing a resolution to the spring RMA to separate the school tax from municipal tax bills.

–

READ MORE