With few revenue sources beyond property taxes and licensing fees, municipalities say the funding shortfall from the province leaves them with few options
The organization that represents 265 municipalities across Alberta closed its annual convention in Edmonton Friday with newly-elected president Tyler Gandam reiterating its $1-billion ask of the province for more infrastructure funding.
Alberta Municipalities delegates voted overwhelmingly Thursday to call on the UCP government to increase the local government fiscal framework (LGFF) from its current $722 million up to $1.75 billion.
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Gandam echoed those sentiments in a question to Premier Danielle Smith Friday, saying that resolution was “one that sticks out in my mind.”
“I’m not looking for answer,” he said to Smith. “I’m just letting you know this is going to be something we are going to be working on.”
ABmunis claims the province’s spending on local infrastructure has dropped from 3.7 per cent of total spending a decade ago to just 1 per cent, leaving municipalities with $1.3 billion less investment in community infrastructure each year.
With few revenue sources beyond property taxes and licensing fees, municipalities say the funding shortfall from the province leaves them with few options.
Smith acknowledged the issue saying, “we’ve got to find a way to get more dollars coming through so that you can reduce your property tax burden.”
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She added that she wanted to work on a funding model with municipalities for one-time surpluses.
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“I’ve watched it happen many times that (the government is) very generous (and) increase the funding when times are good. And, then when times turn the other way, we asked you to take a pretty big haircut and that puts a lot of a lot of extra pressure on you.”
Municipal Affairs Minister Ric McIver said LGFF funding will be launched next year and is tied to provincial revenue, something municipalities have asked for in the past. He added that it is expected to grow by 14 per cent the year after next.
“The formula you asked for will start working for you right away.”
Gandam, the mayor of Wetaskiwin as well as a former firefighter and funeral director, was elected as new ABmunis president with just over 60 per cent votes cast early Friday, defeating Legal Mayor Trina Jones and Calgary Coun. Andre Chabot.
“I know that many of us are having a tough time, and my hope is that I can support you as you navigate this very interesting time,” he told delegates in his pre-vote speech.
Gandam, who will serve a two-year term, is the second straight ABmunis president from the Edmonton area, succeeding St. Albert Mayor Cathy Heron.
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Delegates also heard Friday from Opposition leader Rachel Notley, who began her speech by attacking the government’s potential Alberta pension plan and calling on Smith to better fund municipalities.
“The government is reporting a surplus, so I believe it is the perfect time to be have a face-to-face negotiation … about what our incredible cities, towns and villages need to continue thriving.”
She added that a decision about her political future remains pending and she is “still thinking about what’s next.”
Delegates voted on resolutions on Thursday, including two strongly-supported motions calling on the province to take steps to block political parties entering municipal politics.
Smith said Friday her government is consulting on introducing parties at the local level as well as potentially having run-off elections in certain races, citing low voter turnout in municipal elections, saying she found it “a little frustrating.”
“We want to try to find a way to support you, give transparency … if we can find a party system that you’re amenable to,” she said, adding any local parties would not be offsprings of existing provincial or federal parties.
Earlier in the week, delegates expressed wariness of bringing party politics in municipal government, noting low public support and desire of most local politicians to remain non-partisan.
The 2024 ABmunis convention is scheduled for next September in Red Deer.
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