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Alberta Municipalities Convention and Trade Show

Red Deer joins municipalities in requesting more infrastructure funding from province

Oct 3, 2023 | 7:30 PM

Red Deer City Mayor Ken Johnston says he was “very vocal” in his support of a resolution passed at the annual Alberta Municipalities’ (ABmunis) Convention and Trade Show, calling for more provincial funding for local infrastructure.

From September 27-29, roughly 1,200 delegates from across the province gathered in Edmonton to share concerns and best practices. Alongside Johnston were councillors Vesna Higham, Kraymer Barnstable, Lawrence Lee, Michael Dawe, Bruce Buruma, and Cindy Jefferies.

INFRASTRUCTURE

On Thursday, ABmunis says 98 per cent of the 800 delegates that day supported the resolution, sponsored by the board of directors, calling on the Government of Alberta to increase the base funding level for the Local Government Fiscal Framework (LGFF) from $722 million to $1.75 billion a year.

Newly elected ABmunis President and Mayor of the City of Wetaskiwin Tyler Graham says they have created a formula for the increase.

Johnston explained that prior to the LGFF, the province used a formula for over a decade called the Municipal Sustainability Initiative (MSI), where about three per cent of the province’s revenue would be allocated to municipalities. However, as the years went on, he says that percentage has dropped to just over one per cent. With the LGFF to replace the MSI next year, he says the funding is “short of municipal expectations on what adequate funding should be.”

“Healthy cities are healthy provinces, so we need a restoration of funding that’s going to enable us to keep up bridges, roads, water treatment plants, utility buildings and infrastructure,” he said.

For Red Deer specifically, the mayor says an increase in infrastructure funding could help them accelerate projects in their 10-year capital budget like the Aquatic Centre, pedestrian bridge from Capstone to Bower Ponds, and a performing arts centre, to name a few examples.

“This [would] really enable us to close the deficit in core, key infrastructure. It just enables us to get there quicker which, of itself, attracts development, investment, newcomers, tourism, all those good things,” he said.

READ: City says a Capstone Pedestrian Bridge could cost up to $50 million

Johnston says he was encouraged by Premier Danielle Smith’s remarks about potentially creating a better fiscal revenue sharing formula with municipalities and is optimistic for 2025.

Graham echoed a similar sentiment, claiming that there has been an infrastructure deficit of $30 billion for communities across province.

“There is only one taxpayer, and it doesn’t matter whether it’s coming through the province or through the municipality, but each of these municipalities are facing increasing tax rates to look after the infrastructure. The things you aren’t looking after and the things you aren’t maintaining then cost you two, three, four more times to do the actual replacement,” he said.

He used his own city as an example, noting it’s 100-year-old history, he says they only recently had the opportunity over the past decade to do a main street revitalization from their clay pipes.

HOUSING

Similarly, both Graham and Johnston touched on the increased need for housing, especially for communities experiencing rapid rates of growth.

Graham said the province has voiced a desire to double in size within the next 20 years.

“If we’re going to do that, we need the funds available to those communities that are growing as fast as they are, so it doesn’t get put back on that municipality because it makes it really difficult to grow when they don’t have the financial support with that. If we want to be welcoming to newcomers to Alberta, we need to have that support there,” he said.

Johnston said he felt encouraged that the province expressed intention for form three-way funding partnerships with municipalities and the federal government.

He added Red Deer seems to be “ahead of the curve” as they have zoned areas specifically for multi-family housing and are now waiting for financing and development.

CANADIAN PENSION PLAN

Alberta NDP Leader Rachel Notley also gave a speech at the convention, vowing to try to stop the UCP from withdrawing from the Canada Pension Plan (CPP).

She believes that claims about Alberta leaving CPP are premised on false numbers, creates investment uncertainty, and is an attack on Canadians from coast to coast.

“The Alberta NDP is utterly and completely opposed to this and we will do whatever it takes to protect your pension and the pension of every Albertan,” she said.

“I want you to know that this pension does not belong to Justin Trudeau, it doesn’t belong to Danielle Smith, it doesn’t belong to me. It belongs to all of you and it belongs to the people you represent as their reward for decades and decades of hard work.”

She says the Premier released a report last week, launched an advertising campaign and a survey that Notley claims doesn’t ask Albertans if they want to pull out of CPP.

Notley says opposition has been swift with seniors and business groups and the NDP has also launched its own survey.

Johnston, having a background in banking, said he is going to dig deeper into the UCP’s report to see what is Alberta‘s share of the CPP.

Other topics discussed at the convention included healthcare, pointing to the City of Ponoka’s numerous closures this year in their emergency department, increasing homelessness across the province, and climate struggles seen in communities like Whitecourt, Drayton Valley, and Edson with this summer’s forest fires and floods.

Johnston added he is very excited to host next year’s ABmunis convention in the city in September.

READ: Red Deer seeks to become host city for annual provincial conference every three years