When city councillors get their first look at the 2019-2022 capital budget on Thursday afternoon, the story will be more about what’s not in it, than what is. The document that will be released will not have a clear game plan from the province on where a lot of the money will come from.
“I’ve got to make $16 billion worth of decisions with my colleagues in the next 90 days,” said a frustrated Mayor Don Iveson, “and there is still a multi million dollar hole in our budget in year four because we still don’t have the revenue sharing deal that was promised in the spring budget, which was going to be legislated this fall.”
The Municipal Sustainability Initiative (MSI) is due to end in the spring of 2020 and be replaced by something else. The not knowing what’s next is making it very hard on all municipal politicians.
“The session is in a few weeks time and we still don’t have a deal,” Iveson said. “This is very, very concerning.”
Members of Edmonton City Council are expecting something less than the $4.3 billion that was in place from 2015-2018. That’s in large part because a lot of money is already spoken for in projects like the $1.8 billlion LRT and the $1 billion Yellowhead Trail conversion.
Councillor Tony Caterina, who’s also been hearing frustration in his dealings as a board member of the Alberta Urban Municipalities Association (AUMA), said he doubts we’ll see clear answers soon from the Rachel Notley government.
“This year is probably an anomaly because of the elections (in the spring), so how much is going to get done in January, February, March for us to do a supplemental budget?” he told Global News.
“Are they willing to make commitments prior to an election, or are they waiting until after an election? These are all questions that we need answered as municipalities. Not just Edmonton but all municipalities of what that formula could look like.”
When MSI was first introduced, it was a $1-billion program. However, the Alberta Government has never hit that target. As money got tight at the legislature, the province “reprofiled” the funds, spreading them out over a longer period of time.
Caterina said Edmonton this past year got $60 million less than first promised, and now with a spring election looming he’s been hearing chatter through AUMA that the next go around will be significantly less.
“I think that was to soften the blow going into the 2019 election cycle but then after that the information that I have seen, or my understanding is, it’s going from $800 million to $500 million,” to be shared by all municipalities.
The City of Edmonton uses the money for projects like new and upgraded libraries, fire stations, a police division and a transit garage; renewal and upgrade of recreation facilities; construction of transportation assets like the Valley LRT Line, roads and bridges; and neighbourhood infrastructure like sidewalks and streetscapes.
“It’s been frustrating that we don’t have an answer,” Councillor Michael Walters said, adding Edmonton needs its infrastructure in good shape to attract economic development.
“I think that the province, again, needs to realize the important contribution that particularly big cities are making to the economy in Alberta. Without investment in infrastructure, we’re going to fall behind, which I think is not behind what they tell us is their priority which is economic growth.”
“What we need to stay focused on is renewal and maintaining our existing assets, not to replay that situation where we have to do massive catch up,” Walters said. “New projects are going to be limited, there’s no doubt.”
If the most recent budget is any indication, 55 per cent will go toward new and enhanced infrastructure with the other 45 per cent going for replacement and rehabilitation of existing infrastructure.
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