Alberta, cities reach tentative funding deal

Details expected later this week

EDMONTON After months of divisive wrangling, the province and Alberta’s cities have reached a tentative funding deal tied to the provincial government’s general revenues, the municipal affairs minister said Monday.

Minister Shaye Anderson told Postmedia Monday morning that cabinet will talk about the deal Tuesday. He was tight-lipped on details, but said he’s “very optimistic” he’ll be able to release numbers later this week.

“We talked before about trying to get something legislated in the fall, and to do that we need to work really fast on this. We’ve got to a good spot with (the cities) and we’re all pretty happy with where we’re at,” he said.

“I think it’s going to be good for the cities and the province.”

Movement on a municipal funding deal is a giant leap forward for the provincial and city governments in Calgary and Edmonton, which were at loggerheads over a revenue sharing formula just one month ago.

At the time, Finance Minister Joe Ceci said Alberta’s major cities needed to “come to the table” if they wanted to nail down a municipal funding agreement.

The problem was a gaping chasm between what the cities wanted and what the province was prepared to give.

Last month, Edmonton Mayor Don Iveson said he was “frustrated” with discussions, and called for a meeting with Premier Rachel Notley to figure it out.

It seems the gap has finally been bridged.

“I think we’re very, very close. It’s in the province’s hands to take it over the finish line,” Iveson said Monday following Anderson’s comments.

I think we’re very, very close. It’s in the province’s hands to take it over the finish line.

Edmonton is currently in the midst of trying to set a four-year capital budget. The city’s frustration stemmed from the fact it’s trying to work out funds for building and repair projects, but was simply guessing how much cash would come from the province in 2022.

Iveson added he’s hopeful the agreement gets finalized for the sake of all municipalities currently grappling with uncertainty about provincial funding levels.

Calgary Mayor Naheed Nenshi told reporters Monday he was aware a tentative deal had been reached. He called the deal “fine,” but said he will wait for details to be released before commenting further.

Anderson said movement toward an agreement came after cities realized the crunch on Alberta’s finances thanks to the oil price differential, and that the deal on the table was a good one.

In the end, he said, all parties “came together and said, ‘Yeah, let’s get it done.’”

“There’s only so much money in the coffers, and for them to have something predictable and sustainable is a really big deal,” Anderson said. “The fact we’re going to tie it to general revenue (means) we’re going to share in the good and the bad. That was a big deal for them.”

The new funding formula will replace the current one — the Municipal Sustainability Initiative agreement — set to expire in 2021.