Services will struggle under Alberta budget, says ABmunis
We notice Alberta Municipalities predicts municipal infrastructure and services will be stretched thin as a result of the provincial budget tabled on Feb. 26. While the UCP government said it was not interested in increasing taxes to avoid running a $9.4-billion deficit in the coming fiscal year, property taxes will indeed go up, partly because of increases to provincial property taxes, which the province sets but requires municipalities to collect, and partly because municipalities have no other way to raise needed revenue.
"This means municipalities find themselves in the difficult position of either having to increase property taxes or falling further behind on investments needed to keep up with growth," ABmunis president Dylan Bressey said at a Feb. 27 budget briefing. "Municipal governments have already tightened their belts, and they're stretching every dollar in their budgets." Failing to invest in infrastructure can lead to catastrophes such as Calgary's water main break, and growth brings other pressures, he added. "You can't build new homes if you're not able to flush the toilets." Failing to invest in people has its costs, too, said the organization representing 264 municipalities across the province — its response to the budget expressed disappointment that funding for Family and Community Support Services saw no increase in the budget, making it harder to target the root causes of systemic problems before they reach a crisis point.
As for what the province did right, ABmunis praised the budget for committing to municipal grants in place of property taxes on government properties. But the biggest win was the province's willingness to review and reform the fiscal framework transparently, Bressey said. "We want everyday Albertans to be involved," he said. "That means that they have to understand where their taxes are going and what level of government is responsible for what costs." Property Taxes Reimagined is the organization's resource to help Albertans better understand where their taxes go.
