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By Shaun Penner
Expect Cuts

Letter to Alberta mayors: provincial funding likely to be cut

Nov 11, 2020 | 6:00 AM

Municipalities across the province have been told to expect less money from the Government of Alberta in the coming fiscal year.

A letter from Municipal Affairs Minister, and Grande Prairie MLA, Tracy Allard has been sent to municipal governments, addressed to the “Chief Elected Official.”

Allard states in the letter that the province is facing “very challenging economic circumstances” with revenues lower than they were in the 1970’s, yet expenses are higher than expected due to the need to respond to the COVID-19 pandemic.

She says this will cause financial challenges that will be felt for many years.

“In light of these economic circumstances, Alberta may not be able to sustain our current levels of infrastructure and operating spending. We are already planning for Budget 2021; there will be some difficult choices the province must make to ensure Alberta’s finances are sustainable over the long-term.”

The minister wrote that she understands that many communities are also facing significant challenges and that she will ensure their views are represented in budgetary plans.

“In the meantime, I strongly encourage you to make certain all of your capital spending is used to support critical infrastructure that will benefit future generations of Albertans and position your community to participate in our economic recovery.”

Grande Prairie Mayor Bill Given says with the fallout of the COVID-19 pandemic, he was not surprised to read such a letter

“The provincial and federal governments have put out significant dollars to act as stimulus in the face of the COVID-19 pandemic,” said Given.

“And, in Alberta, we also have the challenge of falling oil revenues, and that means that we don’t have the luxury of living off of those non-renewable resource revenues. Our provincial government, I think, is understanding, finally, that we need to take action as a province.”

Given adds that in order to take that action, he understands that a much higher level of fiscal restraint is required, and municipal governments will also have to tighten their preverbial belts.

“It won’t be a surprise to me if grants to municipalities are reduced significantly in 2021, over what we’ve seen in previous years.”

He says the City’s administration has factored potential losses in grant funding in the 2021 budget, which will be deliberated upon starting on Thursday morning by City Council. Administration has tabled a budget to council that would bring about a 1.5 per cent increase to property taxes in 2021.

Administration notes that increase would keep the City’s property tax rate below what it was in 2017.

That letter sent to municipal leaders preceded a meeting with Allard, Finance Minister Travis Toews and Premier Jason Kenney in Grande Prairie this past weekend. Given says the province’s financial status was one subject that was discussed during that meeting, among many other topics.

He adds topics ranged from municipal policing, provincial support for agricultural services and energy projects.

“It was pretty high level discussion, on a variety of different topics,” said Given.

(With files from David Opinko, Lethbridge News Now)

by Shaun Penner