A small business lobby group is warning that many of Alberta’s municipalities, including St. Albert, are engaging in unsustainable spending.
The Canadian Federation of Independent Business (CFIB) released its third annual municipal spending report on Thursday. The report states that only five of Alberta’s 85 largest municipalities had kept growth in operating spending at or below population and inflation growth between 2000 and 2008.
St. Albert ranked fifth worst among the province’s 18 cities for a measure the CFIB calls the ‘fiscal sustainability gap,’ which measures the ratio of the growth in operating spending with the growth in population and inflation.
St. Albert’s figure of 2.39 means the city has increased its operating spending by 2.39 times the growth experienced in population plus inflation.
On the other hand, St. Albert is in the middle of the pack when rated on per capita spending, at $1,621 per person.
“It signals to me that the amount of spending may not have been a problem in the past but it’s quickly become an issue,” said Richard Truscott, CFIB’s Alberta director.
“If the municipal government there continues on this path they’re going to have to hike taxes and you’re going to see that per capita number jump up.”
Mayor Nolan Crouse felt the per capita spending reflected favourably on the city.
“We’re bang in the middle in spending per capita, with arguably one of highest qualities of life in the province,” he said.
For St. Albert, the challenge lies in where the property tax dollars come from, he said.
“We’re getting the majority of that from taxpayers as opposed to businesses,” he said.
He added that holding municipal spending to population growth isn’t a realistic expectation.
“It’s impossible to be linear with population because you go along with two fire halls … suddenly you need a third fire hall and you didn’t add one extra household,” he said. “Suddenly you need another skating surface.”
The CFIB aims to put spending high on the agenda during the upcoming municipal elections in Alberta. That message mirrors that of the St. Albert Taxpayers’ Association.
“It’s an issue that’s critically important to us. We’ve said that right from the get-go,” said taxpayer president Lynda Flannery.
“We think that municipal spending is very much too high,” she said. “Yes, during the election we plan on talking about that.”
Crouse said he expects to discuss spending during the election campaign.
“It’s important but I’m not going to be under undue pressure from a taxpayers’ association,” he said. “I am going to make sure that we do the right things for St. Albertans that want services for their families and children.”
Mayoral candidate Shelley Biermanski, Crouse’s only declared opponent, couldn’t be reached for comment.
Last Saturday on her blog, Biermanski suggested that St. Albert residents are facing out of control cost increases, from fees and bylaws.
“Visionary ways to rob the people of their hard earned dollars,” she wrote. “Oh my, the repair work that will have to be done.”
The nomination deadline for the upcoming municipal election is noon Monday and voters go to the polls Oct. 18.
Municipal per capita spending
Alberta cities
Wood Buffalo 2,397
Edmonton 1,997
Fort Saskatchewan 1,964
Strathcona County 1,903
Calgary 1,859
Camrose 1,783
Medicine Hat 1,776
Lethbridge 1,758
Spruce Grove 1,695
Red Deer 1,687
St. Albert 1,621
Leduc 1,600
Grande Prairie 1,564
Lloydminster 1,478
Brooks 1,466
Cold Lake 1,450
Airdrie 1,402
Wetaskiwin 1,385
Source: CFIB
