Alberta’s towns and cities are worried proposed changes to the province’s municipal legislation won’t meet their infrastructure funding needs.
This spring the provincial government introduced amendments to the Municipal Government Act. Included in the changes was an expansion of projects eligible to be funded through offsite levies.
Currently offsite levies can only be used to build or expand certain types of infrastructure, such as roads, sanitary sewer systems and storm sewers as part of new developments.
The proposed amendment broadens the scope of these levies, allowing municipalities to finance community recreation centres, fire halls, police stations and libraries with offsite levies, but only if residents of the new development receive 30 per cent of the benefit.
Alberta Urban Municipalities Association president Lisa Holmes says, as they currently stand, the expanded levies will only benefit Alberta’s major cities.
“It won’t be applicable to the majority of Alberta’s municipalities,” she said. “Really only Edmonton and Calgary will benefit from that change.”
Smaller municipalities simply don’t grow fast enough, said Holmes, who is mayor of Morinville.
While no one project is likely to create a third of the demand for a new fire hall or recreation centre in municipalities like Morinville or St. Albert, growth still puts pressure on existing community infrastructure.
That’s why AUMA is asking the province to remove the 30 per cent benefit threshold on community infrastructure in favour of local level discussions between municipalities and developers.
“If it’s going to be in the MGA it should be a tool that all municipalities can use,” said Holmes.
Urban Institute of Developers Alberta president Patrick Shaver believes the current MGA amendment is reasonable.
Although “not married to 30 per cent,” he said there has to be a definable benefit for new areas in order to compel contributions from developers.
“Our position is that levies should be for essential services only, but we are committed to working with the government,” he said.
St. Albert Coun. Cathy Heron, who sits on the AUMA board, says the 30 per cent benefit threshold is confusing.
“Would we be allowed to charge off-site levies to Jensen Lakes residents, for example, for an expansion of Servus Place? We don’t have to pay for a new ice rink if we don’t grow. Or do we have to build an ice rink in Jensen Lakes?” she said.
If the province were to remove the 30 per cent benefit threshold, Heron imagines the levies would work similarly to the city’s discontinued Capital Recreation Contribution Program, which charged a per-lot fee to developers to offset anticipated recreation and culture related infrastructure.
In March, Coun. Tim Osborne put forward a motion involving the establishment and collection of voluntary off-site levies. He indicated the motion would be shelved until the completion of the MGA review.
AUMA also asked for increased flexibility in the application of local improvement taxes in its submission to the province. Currently, this tool can only be applied to an area within a community. AUMA is seeking the ability to charge all residents a fixed amount within a defined timeframe for a specific project.
“What we’re asking for is the ability to fund the infrastructure that we need to build complete communities,” said Holmes.
