It's going to cost municipalities more to borrow for capital projects.

The province can borrow money for capital projects at a better rate than a city or town can because of its size and security. 

The Alberta government would then loan money to local authorities at the same low rate it gets.

The Alberta NDP has received a memo sent to local governments where the province says it'll be adding a 0.5 per cent to 0.75 per cent premium to borrowing rates for local authorities.  

The increased borrowing rate is expected to add millions of dollars worth of interest payments to municipal projects. 

"Albertans are already struggling to make ends meet as they pay more for income tax, more property tax, more school fees, more tuition, more interest on student debt, more camping fees, more for auto insurance and more for utilities," said NDP Municipal Affairs Critic Joe Ceci.

"Increasing borrowing rates for municipalities will further download costs onto Albertans and make monthly bills even more punishing."

A spokesperson for the Town of High River says it won't impact current projects but could impact those it undertakes in the future.