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The Government of Alberta has unveiled draft city charters for Calgary and Edmonton that give the province's two largest cities a raft of new powers and responsibilities. Discussions between the three governments have been underway since 2014, when the then-Progressive Conservative government first proposed the sweeping change to the provincial-municipal relationship. Though the city charters recognize the unique challenges facing Calgary and Edmonton, and correspondingly bequeath more autonomy to the populous urban centres, the province has ruled out new taxation powers.
The Thursday announcement by the NDP government signals talks for an upcoming fiscal framework that will tie infrastructure money to provincial economic performance, rather than the piecemeal grant approach currently in play. Though the exact formula has not yet been determined, the broad strokes of the plan mean that Calgary can expect money for big projects when provincial revenues are strong. A double-edged sword, when the economy is in a recession, the two municipalities won't be spared from the pain.
Though Mayor Nenshi called the draft city charter "the most significant change that we've made to municipal-provincial relations in the history of the province," his calls for new taxation powers went unanswered. Nenshi has long detailed Calgary's dependence on property taxes to fund the municipal budget, which although balanced, is not a sustainable model in the long run, he said. "We're not going to be able to kick that can to too many future generations," Nenshi remarked at the press conference.
But Nenshi praised the new infrastructure model, which he says will make Calgary's budget planning a much smoother process. "It allows the cities of Calgary and Edmonton to do much better, much more efficient budgeting. It has the potential to save hundreds of millions of dollars in unnecessary interest payments because of inconsistent funding."
The charters will give Calgary and Edmonton a number of new powers, including the opportunity to adjust speed limits, angle parking and cycling infrastructure. The draft legislation also allows municipalities to create tribunals to manage transit and parking tickets, increase fines for serious bylaw breaches to $100,000, regulate the operating hours of licensed establishments, and provide clean energy loans to homeowners.
Calgary and Edmonton are beholden to the Municipal Government Act, a one-size-fits-all approach to governing Alberta's 344 municipalities. Home to half of the province's population, Calgary and Edmonton are constantly addressing and evolving a series of issues unique to large urban centres. Already in use across the country, city charters recognize the role of municipalities in providing services to their residents, and grant cities certain flexibilities and authorities in the form of modifications to the Municipal Government Act. The draft city charters regulation is now available for public review until October 10.
