Alberta director Derek Fildebrandt says the unexpected cost is expected to grow the province's consolidated deficit by $7 billion in the next three years.
The group is calling on the Alberta government to reallocate $4.4 billion in annual spending away from pre-flood commitments in order to pay for rebuilding.
Fildebrandt says a key component would be rolling back the salaries of provincial employees by six to 10 per cent.
The federation also wants Albertans to be required to have mandatory flood insurance in the future.
A spokesperson with Alberta Municipal Affairs could not be immediately reached for comment.
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