Alberta municipalities push province to allocate slice of every budget surplus for infrastructure

Alberta municipalities are pushing the province to allocate a share of every budget surplus for critical infrastructure repairs, with members passing a resolution at Alberta Municipalities' annual convention in Edmonton on Thursday morning.

The province is expecting a $2-billion surplus this fiscal year, and continued high oil prices could lead to even higher amounts. Airdrie Mayor Heather Spearman presented the resolution, noting the potential for "real dollars for our communities."

The motion was moved by the cities of Airdrie, Leduc, and Lethbridge, and the towns of Cochrane and Okotoks, with support from towns including Coalhurst, Crossfield, Grimshaw, Hinton, Nanton, and Vegreville, plus the village of Duchess. The underlying reality is urgent: municipalities own and maintain nearly 60 per cent of Alberta's public infrastructure but struggle to pay for it as inflation drives up costs.

Alberta Municipalities has already delivered a proposal to Municipal Affairs Minister Dan Williams requesting the province spend 10 per cent of this fiscal year's surplus — approximately $200 million — on core projects involving water, wastewater, stormwater, roads, bridges, public transit, sidewalks, and fire and police facilities and equipment.

President Dylan Bressey, a city councillor in Grande Prairie, told reporters the association wants an allocation-based formula where every municipality gets its share following existing program guidelines. "We want to get this money out the door. We don't want to introduce a ton of bureaucracy for it and we also want to make sure that every community benefits," Bressey said.

Premier Danielle Smith said she prefers putting one-time revenue into Alberta's Heritage Savings Trust Fund and acknowledged the government must consider paying down debt as interest rates rise. But she signalled openness: "It's really difficult for us to increase permanent spending on the basis of one-time revenues, but if you've got some proposals around that, I'd be really interested in hearing them."

Edmonton Mayor Andrew Knack said infrastructure funding for municipalities has dropped by about two-thirds since 2011, forcing communities to raise property taxes to keep up with necessary repairs. Bressey noted that maintaining roads and pipes now saves money long-term — an economic argument the association is building around its funding request.