We have a plan for mitigating future flooding events, but it requires an estimated capital cost of $12 million. This cost cannot be shouldered solely by the MD and impacted Marten Beach residents.
In early June 2023, the MD submitted an application for the Government of Canada’s Disaster Mitigation and Adaptation Fund (DMAF) grant. If the application is successful, the DMAF grant will cover 40% of the total capital project cost; a scenario that leaves the MD with a $8.4 million capital expenditure. Provided that the MD receives DMAF grant funding, the expectation is that the remainder of the project will be cost-shared between the MD, the Province, and Marten Beach landowners.
The Hamlet of Marten Beach has experienced increasing occurrences of overland flooding in recent years. These events have damaged homes, temporarily displaced residents, and discouraged recreational use of this picturesque community on the northern shore of Lesser Slave Lake. Proactive measures must be taken to mitigate further risk to this community.
The background information on this initiative will be updated following the Rural Municipalities of Alberta 2023 Fall Convention (November 6 – 9, 2023). Thank you for your patience.
The Hamlet of Marten Beach has experienced increasing occurrences of overland flooding in recent years. These events have damaged homes, temporarily displaced residents, and discouraged recreational use of this picturesque community on the northern shore of Lesser Slave Lake. Proactive measures must be taken to mitigate further risk to this community.
Following extensive engineering, financial and environmental studies and requisite public consultation, a preferred flood mitigation option has been chosen (Option 5: Room for the River with Dykes) at an estimated capital cost of $12 million. This option returns the highest positive long-term net present value for both the Province and the MD. In October of 2022, Nichols Applied Management (Nichols) conducted an analysis that explored capital funding options including the feasibility of the MD financing the project in its entirety.
Council continues to advocate for a funding arrangement where project costs are shared between the MD, affected residents, and provincial grant contributions. However, most residents of this small community would be hard-pressed to take on such a financial burden. As such, the MD would likely shoulder some or all of the resident portion (to be recouped later). This leaves provincial funding as the remaining unknown variable.
Historically, MD financing of large capital items has been largely ad-hoc, consisting of special one-time transfers or small transfers of earned interest income. As such, a large portion of capital spending has typically been supported by the Municipal Sustainability Initiative (MSI) or other grant funding. However, due to the pending shift from the MSI program to the Local Government Fiscal Framework (LGFF) with no apparent formula to forecast the amount received, we face significant funding uncertainty for this venture.
The Marten Beach flood mitigation project will likely be MD-funded in large part; augmented by any provincial grant funding received. We intend to apply for a Disaster Mitigation and Adaptation Fund (DMAF) grant with its potential to cover 40% of the total capital project cost, leaving the MD with a $7.2 million expenditure. If our grant application is unsuccessful, we will likely need to finance 100% of the anticipated $12 million expenditure.
PRIMARY CONCERNS
Council requests special consideration for additional grant funding to help pay for the Marten Beach flood mitigation project.
Council requests that the Province bear its fair share of partial financial responsibility for the chosen flood mitigation strategy in Marten Beach.
This project is hindered by the opacity of applicable provincial grant partnership programs. Council requests the status of an allocation formula for LGFF.
