Alberta NDP Unveils "Historic" Tax Agreement for Calgary and Edmonton

The NDP government has unveiled a new tax agreement for major cities in Alberta to replace the municipal sustainability initiative, which will soon be extinguished.

If the bill is pbaded, starting in 2022, Calgary and Edmonton will receive $ 500 million in funding to be split between the two cities – an amount that could increase in the coming years based on provincial revenues and fuel sales. .

An additional $ 400 million would be spent annually on long-term transit projects through the carbon tax, which will be split between Calgary and Edmonton starting in 2027.

Minister of Municipal Affairs Shaye Anderson called the agreement a "historic" agreement, reached after years of negotiations with major cities in Alberta.

"No other province has signed an income-sharing agreement with municipalities like this," Anderson said Thursday.

"No other province is planning long-term public transit funding, with the exception of Alberta. This is a big deal. "

The pledges are far short of the $ 11.3 billion commitments made by previous governments under the MSI, but proponents say they are commensurate with Alberta's current economic situation.

A key benefit for cities is that the new framework integrates annual capital funding into provincial legislation. The new fiscal framework is also tied to provincial revenues: if the province's total revenues increased by 50% in 2023-2024, transfers to cities would increase by 5%.

The province will also spend $ 50 million a year on regional infrastructure projects. One-third will go to the Metropolitan Calgary Council, one-third to the Edmonton Regional Commission, and the rest will be allocated to other regional projects on a competitive basis.

Finance Minister Joe Ceci was a Calgary City Councilor when the initial funding for MSI was put in place. He told reporters that its introduction in 2007 marked a period of significant growth for cities like Calgary.

But with the end of the MSI in 2022, a new agreement had to be concluded.

That said, the big cities in Alberta will finally have the "predictable" and "permanent" funding model with the introduction of the new fiscal framework.

"If this bill is pbaded, cities will have the certainty and predictability necessary to build their budget," said Ceci. "Know exactly how much they can spend on infrastructure while having the opportunity to choose the most important projects for residents.

The new fiscal framework is a key element of the province's 2017 urban charters plan.

More soon…