Addressing long-term municipal funding concerns was top of mind at the Mid-Sized Cities Conference held in Edmonton last week. Mayor Jeff Genung and CAO Dave Devana both attended the conference with mayors and CAOs from across the province, rallying behind the consensus that municipalities are looking for long-term solutions to replace the Municipal Sustainable Initiative (MSI) funding program that has been reduced and is coming to an end in 2021. Combined, the conference drew representation of some 1.4 million Albertans residing in towns or cities with populations greater than 20,000. “Our voice is important,” said Genung, who is looking forward to hosting the next conference in Cochrane, slated for January 2019. Premier Rachel Notley and UCP leader Jason Kenney are invited to the conference.
On Cannabis
With legalization of cannabis well underway and retailers facing challenges to keep up with demand, the potential is apparent as far as revenues are concerned. What is also apparent, according to Genung, is that municipalities across Alberta are dissatisfied with the provincial funding they are receiving – with the Alberta Urban Municipalities Association (AUMA) taking a strong stance that the funding structure is a bad deal. “The general consensus is that we’re not happy,” said Genung. “It’s an indication that the provincial government doesn’t understand the needs of municipalities.” The federal government is keeping 25 per cent of the revenues, with 75 per cent to go to provinces under the auspices that the funding will be dispersed fairly to municipalities. The recent announcement that the province will provide $11.2 million in funding to municipalities over the next two years through the Municipal Cannabis Transition Program is being perceived as an inadequate way to address the costs that will be faced by municipalities – namely enhanced bylaw enforcement and policing. There are also administrative costs to municipalities associated with bylaws, marketing and communication. Communities with a population under 5,000 will receive no provincial funding assistance. According to AUMA, this translates to 215 municipalities left to cover costs on their own, with only 52 towns, cities and urban service areas receiving minimal funding. “We are extremely disappointed with this announcement,” said AUMA president Barry Morishita, in a recent press release. “Hundreds of Alberta communities are being forced to choose between hiking property taxes or putting public safety at risk and that is unacceptable. This ongoing lack of meaningful consultation from the provincial government has resulted in the province not fully comprehending the impact cannabis legalization will have across Alberta.”
