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Alberta budget shouldn't hurt RVC, Boehlke

Rocky View County (RVC) is confident the spending reductions outlined in this year’s provincial budget will not have a significant negative impact on county residents.

“There’s no question the new provincial budget will have an effect,” said Reeve Greg Boehlke, in a statement. “But RVC starts from a position of low taxes, tightly-controlled spending, and the right level of programs and services for our residents. When you’re already aligned with the provincial government’s objectives, it makes it much easier to adapt to budget challenges.”

The United Conservative Party (UCP) tabled its first budget Oct. 24, calling for a 2.8 per cent cut in overall program spending over four years – including a nine per cent reduction to the Municipal Sustainability Initiative (MSI) program by 2021-22.

The MSI program, according to the government’s website, provides funding to municipalities for large capital projects such as roadways and bridges, public transit facilities and wastewater infrastructure upgrades.

In 2020-21, the funding for the program will be reduced by $94 million, and in 2021-22, the reduction will hit $142 million – an overall reduction of $236 million.

According to Boehlke, because RVC has kept up with its infrastructure needs and has often used its own revenues to accelerate road and recreation projects, it is not heavily reliant on the MSI program. He acknowledged the loss of funding will have limited impact in 2020, but could slow the implementation of capital projects in future years.

“We accept that as the reality of the economic conditions Alberta faces,” he said.

Under the new framework for the program, known as the Local Government Fiscal Framework, municipalities will split a pot of $860 million starting in 2022-23, with large cities like Calgary and Edmonton receiving more than half.

The amount will be adapted each year to reflect half the percentage change in the province’s revenues. For instance, if provincial revenues drop by four per cent, MSI funding will drop by two per cent.

While RVC’s population is around 40,000 residents, Boehlke said, the area represents the fifth largest municipal economic assessment base in Alberta. According to the reeve, the strength of the County’s economy should help it weather spending cuts at the provincial level with no “substantial” property tax increases expected for residents or business-owners.

“I know our residents and business owners will appreciate knowing that – at most – we will only be looking to cover inflation,” he said. “Whether it’s federal, provincial or municipal spending, in the end, it’s all one taxpayer. I’m very proud that RVC council and our County staff are doing our part to ensure a healthy economy, good jobs, affordable taxes and an outstanding quality of life for residents.”

Airdrie-East MLA Angela Pitt, a member of the UCP, applauded the province’s spending reductions.

“Budget 2019 accomplishes exactly what we promised during the election,” she said. “It’s a balanced plan, creates jobs, grows the economy and protects vital services.

Pitt, an MLA since 2015, said it was important for the UCP to address Alberta’s debt in its first budget.

“We were on track for $90 billion of debt after the last four years of the NDP government,” she said. “Albertans need to know that cost us $5 million a day in debt servicing costs. Those are fees that are leaving Alberta and not benefitting us in any way, shape or form. Now is the time to get this under control, before it’s out of control and we can no longer address the situation in a measured, meaningful way.”

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