Calgary Herald

Transfers to cities reduced, but transit funding maintained

Province commits major spending for Green Line LRT

- MEGHAN POTKINS

Alberta will trim funding for municipali­ties while preserving commitment­s to key Calgary projects like the Green Line and ring road.

Finance Minister Joe Ceci outlined plans to reduce transfers to cities by $152 million per year in Thursday’s budget, while reaffirmin­g the province’s commitment to city charter discussion­s this fall.

Calgary will see a $91-million cut in transfers from the province’s Municipal Sustainabi­lity Initiative, known as MSI, as part of the NDP government’s pledge to achieve a balanced budget by 2023.

Alberta hopes to shave more than $2 billion from capital budgets over the next five years, which will include cuts to MSI and other municipal grants.

Ceci said the province is aiming to modernize its relationsh­ip with municipali­ties.

“We have been working with Alberta’s two largest cities on a longterm revenue-sharing formula that will support their continued growth that recognizes the unique opportunit­ies and challenges they face,” he said.

“New funding arrangemen­t discussion­s will begin with municipali­ties large and small.”

A new funding deal could come as city charter talks wrap up this fall.

Cities such as Calgary have long called for a more predictabl­e funding arrangemen­t with the province to replace the MSI program, which expires in 2021.

Mayor Naheed Nenshi described the budget as a “mixed bag ” for cities, with much of the impact of the cuts still unclear.

“We are somewhat disappoint­ed in the cut to the MSI program,” Nenshi said. “I will tell you that number is less than where we started. I’m pleased that at least we were able to negotiate a smaller cut this year than was anticipate­d.

“Winding down the MSI program is worrisome, taking that cut this year is difficult, but we are looking forward to what happens in the future.”

Nenshi said he was pleased with all the talk of city charters in the budget.

“I was very pleased to hear Minister Ceci talk about revenue-sharing in the future because getting that right (and) divorcing the city from the whims of the provincial government in terms of building things that we need (like) roads and rec centres and fire halls and transit, is incredibly important.”

The budget also saw the province honour a $3-billion pledge to LRT funding in Alberta’s major cities, with the bulk of the funding in 2018-19 going to Calgary’s Green Line project.

Ceci added the province is working towards establishi­ng a “longterm provincial transit investment plan” aimed at cities and surroundin­g regions.

Calgary currently has funding to complete the first leg of the Green Line, but Nenshi said he hopes the new transit investment plan will push the project further ahead.

“The time is now to figure out what happens in 2025 and beyond because that will help us plan,” he said. “So if there is a program that allows us to fund the rest of the Green Line, then actually the time is now to start doing the land acquisitio­n and the design for those stations.”

Provincial cash earmarked for Calgary’s ring road constructi­on and an expansion of the Calgary Zoo also remain unchanged from previous budgets.

Nenshi also welcomed news that funding for $150 million in local flood mitigation projects was untouched in the budget; but the mayor has his sights set on some “very big money” that’s still needed for flood mitigation on the Bow River:

“We will continue to work with the province and press the case very hard that flood mitigation continues to be our No. 1 infrastruc­ture priority, it has to remain that way,” Nenshi said.

 ?? DARREN MAKOWICHUK ?? Calgary Mayor Naheed Nenshi said cuts to provincial transfers are “worrisome,” but added he was pleased with talk of city charters and assurances around flood mitigation projects.
DARREN MAKOWICHUK Calgary Mayor Naheed Nenshi said cuts to provincial transfers are “worrisome,” but added he was pleased with talk of city charters and assurances around flood mitigation projects.

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