Town administration is examining the impact of changes in funding levels from the province's Disaster Recovery Program (DRP).

Starting Apr. 1, the province is introducing a 90/10 split on cost-sharing for disaster relief between the province and municipalities, private companies, and Métis settlements. This includes homeowners, residential tenants, small business owners, landlords, agriculture operations, condominium associations, and not-for-profit organizations and cooperatives.

A $500,000 funding cap has also been established for homeowner applications that will now be available on a one-time basis. If a property has received disaster financial assistance in 2021 and beyond, that property will not be eligible for subsequent DRP assistance in the future.

Emergency evacuation payments have been limited to when there is a mandatory evacuation during an uninsurable disaster. The payments will be $625 per adult and $300 for dependents.

Previously, 100 per cent of uninsured losses from government-stamped disasters were covered by the provincial program.

Mayor Jeff Genung says the impact is much larger than it may appear, yet he understands the rationale behind it.

"The intent is not to continue to rebuild in places that may be particularly prone to disaster," he says.

"That makes sense, so don't rebuild something in a place that has flooded in a place once, twice, three times, and be smarter about where we put buildings. But the unintended consequence is what I'm really concerned about."

He says mitigation actions alone don't fend off all disasters.

"The whole 90 per cent, 10 per cent, that's really what I would like us to look into," says Genung. "Do we now have to build a reserve fund just in case there's a disaster in our community that now, as a town, we're going to have to pitch in to help residents and businesses overcome?"

A report on the impact of this and other measures in the provincial budget will likely be provided to Cochrane town council at its Mar. 22 meeting.

The government says the changes were instituted changes because the cost and frequency of disasters in Alberta are increasing. 

By putting this framework in place, the government says it is encouraging the purchasing of appropriate insurance; reducing property development in high-risk areas; relocating to less disaster-prone areas, and enhance mitigation efforts by property owners.

Before these changes, Alberta was the only province that did not share the financial risk and liability of disaster expenses through cost-sharing mechanisms, thresholds, residential funding limits, or restrictions to assistance in floodways, as part of its disaster assistance program.