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As Calgary races to strengthen its aging water system this year, Mayor Jeromy Farkas is calling on the provincial government to make a strong investment in municipal infrastructure.
Affordability is top of mind in Alberta, Farkas said, as the provincial government prepares to table its budget on Thursday. He stressed the need for the province to help Calgary, and other cities and towns around Alberta, bridge the gaps they face in infrastructure funding.
“It’s important for us to recognize that there’s a cost no matter what we do. We can either pay modestly now or we can pay massively later,” said Farkas on Tuesday.
“We want to take the bull by the horns, and we want to address this issue here and now rather than just punting it to future taxpayers. And that’s what my hope for the provincial government will be.”
Farkas added that more funding to update leaky pipes in the city’s aging water system could make Calgarians’ utility bills more affordable.
Calgary Mayor Jeromy Farkas wants to see a stronger investment in local infrastructure from this week’s provincial budget. (CBC News)
Water infrastructure has absorbed much of city hall’s attention this year as it works to build a new Bearspaw feeder main, after a pair of catastrophic pipe breaks in recent years.
Premier Danielle Smith has primed Albertans to expect a “tough” budget this week and “significant” deficits in the future, as a result of low oil prices. In November, Finance Minister Nate Horner estimated the province would finish the fiscal year with a $6.4-billion deficit, which is $1.2 billion higher than the estimate provided in last year’s budget.
But earlier this month, Smith said the province still plans to support building infrastructure.
Farkas argued the health and reliability of local infrastructure can’t rest on resource revenues.
“The price of a barrel of oil has zero relevance on whether or not a Calgarian should be able to get safe, reliable drinking water out of their taps,” said Farkas.
“It’s a very misguided model to somehow link the price of oil with reliability of core infrastructure needs. So my hope is that we can move beyond that.”
Oil prices bringing financial pressures
Smith said on Tuesday the province is feeling increased pressure on its expenses partly due to declining revenue from its natural resources.
“We’ve been accustomed to having a higher amount of resource revenues in order to be able to balance the budget,” said Smith.
“With the additional pressures we have of unprecedented population growth, it’s put us in a position where we had to make some tough choices.”
Premier Danielle Smith said Albertans should expect a ‘tough’ budget this week. (CBC News)
But Smith added she wants to ensure Alberta’s infrastructure funding is stable, without dramatic swings in investment, echoing Farkas that under-funding can lead to more expensive projects in the future.
Infrastructure gaps a problem across Alberta
Calgary isn’t alone in the challenge it faces to properly fund infrastructure while keeping up with residents’ needs, said Alberta Municipalities president Dylan Bressey.
Municipalities already have a sense of what to expect from this week’s budget, because of the Local Government Fiscal Framework (LGFF). The LGFF was introduced in 2019, and it ties capital funding for local governments to provincial revenue indexed to three years earlier. The intent is to provide sustainable, predictable funding levels.
Bressey said he supports the LGFF formula and the predictability it provides, but argues “the starting pot was never sufficient.”
“If it had started where it should have started, that LGFF would have been a great program. But it’s never been properly funded from day one. And now we’re seeing long-term consequences from that.”
He added property taxes alone aren’t a viable solution to fund infrastructure.
Bressey said he’s worried the province doesn’t recognize how key funding local infrastructure is to keeping up with population growth and diversifying the economy.
“Every single city, town, village and summer village has a pipe that they don’t know how they’re going to fix or a road that they need to build to take care of new homes,” said Bressey.
“We really are hoping to see not just one-off projects, but also sustainable funding that goes to all municipalities to deliver on their needs.”
