Lethbridge Herald

U of L, college vital to city success

Cuts to provincial grants hurting Lethbridge in recovering costs for services GUEST COLUMN

- Chris Spearman MAYOR OF LETHBRIDGE

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.

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