AUMA president Barry Morishita (rdnewsNOW file photo)

By Troy Gillard

being equal partners

Municipal leaders ask province to work together on fair funding model

Nov 4, 2019 | 3:47 PM

Municipal leaders in Alberta are calling on the provincial government to work with them to amend Bill 20.

They mayors of Calgary and Edmonton and the presidents of the Rural Municipalities of Alberta (RMA) and the Alberta Urban Municipalities Association (AUMA) issued a joint statement on Monday.

They believe funding to municipalities should be based on a one-to-one ratio tied to provincial revenues, allowing municipalities to increase investment in needed infrastructure when revenue is positive and to make necessary adjustments during more challenging times.

The provincial budget tabled on Oct. 24 proposes a half-rate funding ratio.

“We urge the government to take a longer term view of the role of municipalities. We encourage them to work with us to determine the appropriate formulas and solutions to help address the fiscal challenges while continuing to make our economy grow,” the statement reads.

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Bill 20, the Fiscal Measures and Taxation Act, includes getting rid of a number of dedicated funds (ex. the Municipal Sustainability Initiative) and tax credits in favour of the new Local Government Fiscal Framework which starts at $860 million in 2022-23 and, according to the budget, “will see those transfers grow at half the rate of provincial revenue growth.”

Municipal leaders say that while they understand the province needs to get its fiscal house in order, municipalities must be full partners in that effort.

“Bill 20 effectively downgrades the role of municipalities just when partnership is needed more than ever,” Edmonton mayor Don Iveson said. “Just as the Premier has repeatedly called on the federal government to issue Albertans a “fair deal” to drive Canada’s prosperity, municipalities are asking for their “fair deal” to be full partners in supporting economic recovery and growth.”

“Municipal leaders are encouraging the province to take a longer term view of the role of municipalities, and to work with them to determine the appropriate funding formulas and solutions to help the economy grow during challenging times.

“Alberta municipalities are united, requesting that the provincial government begin consultations to ensure that this legislated infrastructure funding is adequate and grows at the same rate as the Alberta economy. Adequate infrastructure funding drives economic growth, creates jobs for Albertans and enhances the Alberta advantage,” said AUMA president Barry Morishita.