Alberta premier eyes Municipal Government Act changes to address infrastructure funding gaps

Premier Danielle Smith is considering potential changes to Alberta's Municipal Government Act following calls from cities and towns for increased infrastructure funding and clearer governance relationships with the province.

Smith spoke Wednesday at the Alberta Municipalities Convention in Edmonton, where local officials raised grievances around insufficient infrastructure funding, restrictive code of conduct rules, and provincial-municipal relations. "Maybe the way to talk about the Municipal Government Act is that's kind of like our constitution with each other," Smith said. "I have heard from many of you that when you feel frustrated it is (that) the MGA won't let us do this or that."

One proposed change would allow larger municipalities to operate more similarly to the provincial government, including holding private briefings before public debate. Alberta Municipalities president Dylan Bressey said member councils object to new rules imposed on all municipalities due to the actions of one or two councils. He cited recent code of conduct changes as an example, earning loud applause from the assembled mayors and councils.

Bressey requested an allocation-based funding formula and asked the province for 10 per cent of Alberta's $2-billion summer surplus—about $200 million—for municipal infrastructure investment. He noted that provincial infrastructure funding to municipalities has decreased by 50 per cent over the past 10 years, failing to keep pace with population growth and aging infrastructure. Smith said Albertans remain tax-averse and that the province is taking a closer look at education property tax rather than introducing a provincial sales tax.

No timeline has been given for Municipal Government Act changes, and no specific amendments have been proposed beyond the larger municipalities' private meetings provision.