U of L, college vital to city success
Cuts to provincial grants hurting Lethbridge in recovering costs for services GUEST COLUMN
Iappreciate the longstanding, collaborative relationship the City of Lethbridge enjoys with the University of Lethbridge and Lethbridge College. We are proud to all be members of Team Lethbridge.
In that spirit, this week I reached out to U of L President Mike Mahon and Lethbridge College President Burns to meet with me to discuss the information about property taxation that we have shared recently in our respective op-ed pieces in The Herald. It was a welcome opportunity to gain a greater appreciation of each other’s perspectives.
I agree wholeheartedly with Mr. Mahon and Ms. Burns that our university and our college are undoubtedly some of the most important and substantial contributors to the economy of our city. I commend the civic, municipal and provincial leaders of the 1950s and 1960s who had the vision and the passion that led to the creation of these two fine institutions. Credit also goes to those who have contributed to the continued growth of our college and university since their establishment.
Lethbridge College and the University of Lethbridge both provide excellent educational opportunities across an impressive spectrum of faculties. They are frequently partners with business and other organizations in our city. They offer enriched cultural, educational and recreational opportunities to our citizens. Everyone currently employed at Lethbridge College and the University of Lethbridge is fortunate to benefit from high-quality jobs as a result of the vision and passion of those who created and led these fine institutions since their inception.
On behalf of Lethbridge City Council and the City of Lethbridge, I wish to state clearly that, despite being largely exempted from municipal taxation, Lethbridge College, the University of Lethbridge and seven other large government-funded employers in our city make vitally important contributions to our city and our economy. Without them, Lethbridge would easily be half the size it is today and a far less interesting city in which to live.
The real issue I was attempting to highlight is that, as a form of costcutting, a succession of provincial governments have eliminated grants in lieu of taxes to local municipalities on provincially owned properties. In reality, this amounts to downloading to municipalities expenses for which municipalities historically received grants to help pay the cost of services they provide.
The most recent example of this in 2015 was the elimination of grants in lieu of taxes paid to municipalities for government-owned retirement facilities. The elimination of that grantin-lieu cost the City of Lethbridge almost $1 million per year, which then had to be recovered from local taxpayers. With 18 government-owned retirement facilities, Lethbridge was more adversely affected on a per-capita basis than any other city in Alberta. The people residing in retirement facilities deserve their full share of municipal services, but it is the remaining tax base that pays for them.
When we point out that nine of our 10 largest employers in Lethbridge pay little or no municipal taxes, it is not meant as a criticism of those government-funded employers and institutions. We are grateful to have them and the 13,142 jobs that they provide in our community. I point it out as a way of providing local context for those in our city who question why municipal taxes in Lethbridge aren’t lower in comparison to some other Alberta cities.
Another challenge we face is that the non-residential (business) tax base in Lethbridge is only 19 per cent of the total tax base. The average for Alberta cities is 25 per cent. Our focus must continue to be on economic development and business growth.
City council does its best to examine expenses and find efficiencies. We directed our city leadership team to develop a four-year base budget that absorbs inflationary and growth pressures for the full four-year period, understanding that our commitments to debt funding and infrastructure improvements will generate a 1.6-percent tax pressure.
Evidence of the collaborative partnerships between the City of Lethbridge, the college and the university is all around our city. The wellness centre and the community stadium on the university campus are products of collaboration between the U of L and the City, as is the university conservatory located in Casa. Several years ago, the college and the City partnered to develop additional oncampus student residences, and we collaborated on potential plans for a new twin arena on the campus that formed part of Lethbridge’s bid to host the 2019 Canada Winter Games.
In addition, city council has proudly provided financial support for an array of special events hosted by the college and the university and has endorsed provincial investments in capital expansion projects on both campuses.
The city is providing $125,000 in taxfunded support for the U of L to host the U Sport Men’s University Hockey Championships in March 2019. Municipal taxes also provided funding for both the University of Lethbridge’s 50th anniversary and Lethbridge College’s 60th anniversary celebrations last year. The City has fully supported the Destination Project at the University of Lethbridge and the trades expansion Lethbridge College. In addition, our public transportation system recognizes that students rely on the service with hubs at the university and the college; 75 per cent of the cost of Lethbridge Transit is funded by taxpayers.
Collaboration like this demonstrates that we are all part of Team Lethbridge and that our relationships remains as strong as ever.