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Mayor Andrew Knack says while he\u2019s grateful the provincial government has reinstated municipal grants and is investing in Edmonton\u2019s downtown, its latest budget doesn\u2019t meet the mark for the city\u2019s infrastructure needs. <\/p>\n
\u201cIt feels like a very status quo budget,\u201d Knack said.<\/p>\n
The city is facing a $1.5-billion infrastructure renewal deficit<\/a>.<\/p>\n Knack said that is partially the result of consecutive provincial governments not doling out enough for infrastructure.<\/p>\n \u201cWe appreciate it\u2019s a tight budget, but what is the forward-looking plan that allows municipalities to start catching up with the incredibly rapid population growth we’ve been seeing over the last 15 years?\u201d<\/p>\n Knack raised the concerns after Finance Minister Nate Horner tabled an $83.9-billion budget<\/a> for the upcoming fiscal year. The province estimates it will finish out the year with a $9.4-billion deficit.<\/p>\n Education property taxes<\/p>\n Horner\u2019s proposed budget will see education property taxes go up again. A portion of homeowners\u2019 property taxes are collected by the province to pay for education.\u00a0<\/p>\n In Edmonton it\u2019s nearly 30 per cent of the total property tax bill.<\/p>\n Last year, the province said it would be using these taxes to pay for one-third of education<\/a> operating costs.<\/p>\n The rate homeowners will be charged per $1,000 of their home value is increasing from $2.72 per $1,000 in assessed values for homes and farms to $2.84.<\/p>\n That works out to $154 more per year for the median homeowner in Edmonton.<\/p>\n Municipalities have called on the province<\/a> to collect its own education taxes, rather than have them lumped together with municipal property taxes.<\/p>\n Horner said that isn\u2019t something his government is considering.<\/p>\n \u201cI don\u2019t think it’s really something they should be asking for,\u201d he said.\u00a0<\/p>\n \u201cWe’re not going to create duplicate systems to collect these things.\u201d<\/p>\n Grants in place of taxes<\/p>\n The Alberta government has lived up to its promise to restore the province\u2019s \u201cgrants in place of taxes\u201d program.<\/p>\n This is money the province gives to municipalities in lieu of paying property taxes on provincial buildings. In 2019, the province stopped paying the full amount, only giving about half of what it would pay in property tax.\u00a0<\/p>\n In Edmonton, where a large share of provincial buildings are located, that move amounted to tens of millions of dollars less in funding.<\/p>\n After pushes from municipalities<\/a> across the province, the provincial government said it would restore grants to 100 per cent this year.<\/p>\n Horner said this was a priority for Premier Danielle Smith after talking with mayors of large cities in the province.<\/p>\n \u201cShe felt that it was unfair the way we had gone about it in the past and wanted to rectify it,\u201d he said.\u00a0<\/p>\n However, infrastructure funding was reduced in the Local Government Fiscal Framework by $20 million because its formula is tied to provincial government revenue.<\/p>\n Knack said he\u2019d like to see the formula of that fund changed to restore funding to 2011 levels.<\/p>\n Horner said he understands municipalities are facing infrastructure renewal deficits, but so is the province.\u00a0<\/p>\n \u201cI think everybody’s going to have to be reasonable \u2014 or equally disappointed,\u201d he said.\u00a0<\/p>\n \u201cWe’re trying to spread it around to make the most impact.\u201d<\/p>\n What\u2019s in the budget for Edmonton?<\/p>\n The budget includes $152 million over three years for Edmonton Downtown and Coliseum Site Improvements.<\/p>\n The budget also allocated $1.3 billion over three years to expand Edmonton\u2019s LRT system. This includes funds to finish the Valley Line West expansion and the Capital Line South extension.\u00a0<\/p>\n The spending plan also sets aside $5 million this year to plan LRT lines to airports in both Edmonton and Calgary. It\u2019s part of a larger multi-year project to look into a new passenger rail system in Alberta.<\/p>\n A number of projects at Edmonton post-secondary institutions are being funded to help accommodate more students, including MacEwan University\u2019s new business school, the University of Alberta\u2019s redevelopment of its Biological Sciences Building and the Northern Alberta Institute of Technology\u2019s Advanced Skills Centre.<\/p>\n There is $11 million in the budget for the Winspear expansion project, which has run over budget and is $33.4 million short in capital funding<\/a>.<\/p>\n Getting some of Edmonton\u2019s roadwork over the finish line also received more funding, including $99 million for the Terwillegar Drive expansion project and $83 million for the Yellowhead Trail freeway conversion project.<\/p>\n