“We recognize the complex fiscal environment facing the Government of Alberta. Economic uncertainty and rapid population growth have placed significant pressure on public finances. Alberta’s mid-sized cities are among the province’s fastest-growing communities. We understand firsthand the financial and infrastructure challenges that accompany sustained growth. Unfortunately, this recently released budget puts a disproportionate strain on municipalities and burdens the property tax system with direct and indirect tax increases for matters within provincial jurisdiction.
While we expected a reduction in the Local Government Fiscal Framework (LGFF) allocation due to a drop in revenues, we continue to be of the position that the starting point for the LGFF allocation should have been much higher, given that it is well below historic per capita levels of funding which now has been passed onto our residents to pay in their property taxes.
Likewise, having municipalities collect a significant portion of property taxes on behalf of the provincial government risks confusion for residents and blurs accountability between levels of government. Municipalities are being asked to collect more and more provincial tax dollars for education while covering the increased costs and inflation associated with provincially funded programs whose funding levels have been frozen. We would encourage a letter to be sent to municipalities, similar to what Municipal Affairs provided last year, to communicate this taxation change to Albertans. That said, we acknowledge and appreciate the Government of Alberta’s efforts to support mid-sized municipalities, including the full return of grants in place of taxes and targeted programming for small and mid-sized communities across the province.”
Mayor Jeff Acker, MCMC Chair