Agenda Item No.: E.1.e.
City of Edmonton Submission to 2006-07 Provincial Budget
Recommendation:
1. That the proposed strategy to guide the
development of the City of Edmonton’s
submission to the Government of
Alberta for consideration in the 2006-07
budget process be approved.
2. That the Mayor write to the Premier of
Alberta requesting additional funding for
allocation to the City of Edmonton’s
2006 budget as outlined in the proposed
strategy.
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Report Summary
This report proposes a strategy for
Edmonton City Council’s submission to the
Government of Alberta for consideration
during the 2006 budget process.
Previous Council/Committee Action
At the November 15, 2005, City Council
meeting the following motion was passed:
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That the report Pillars of Partnership:
Maintaining and Expanding Alberta’s
Advantage in the 21st Century Global
Economy be referred to Executive
Committee to develop a strategy to
provide a submission to the provincial
government that outlines a set of actions
to obtain ongoing sustainable funding.
Report
Background
 In July 2005, Edmonton City Council
agreed to have Administration work with
City of Calgary officials on the
preparation of a joint submission to the
Government of Alberta’s 2006-07
budget process.
Routing:
Delegation:
Written By:
November 23, 2005
File: 2005CMO081rev
Executive Committee, Council
A. B. Maurer/M. Ulmer-Johnston
M. Ulmer-Johnston
City Manager’s Office
(Page 1 of 3)
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Over the ensuing three months,
Administration officials from the two
Cities worked together to prepare a draft
submission that would meet the approval
of their respective City Councils.
The draft submission was discussed by
Edmonton City Council at their
November 15, 2005, meeting. Council
members concluded that the draft
submission did not adequately reflect
their thoughts on what the City’s main
concerns are with the Government of
Alberta, particularly in relation to the
provincial funding of municipal
priorities. As a result, the draft was
referred to Executive Committee for the
development of a strategy for a separate
City of Edmonton submission to the
provincial budget process.
On several occasions over the past few
months, Alberta Municipal Affairs
Minister Rob Renner has stated his
intent to reconvene the Minister’s
Provincial/Municipal Council on Roles,
Responsibilities and Resources in the
21st Century. Further, the Minister has
advised that the Committee will be
expanded to consider a fourth “R” –
relationships – during its deliberations
which are expected to begin in early
2006.
Given the intricate relationship between
the Province and its municipalities, it is
expected the Minister’s Council may
take several months, or possibly even a
year, to determine and table its results
with Cabinet. In the meantime, the City
of Edmonton will continue to feel the
pressures of growth on the provision of
critical services to its citizens. Further,
City of Edmonton Submission to 2006-07 Provincial Budget
as it stands now, the City will have to
absorb the cost increases associated with
these pressures.
Proposed Strategy
 Given the direction the Government of
Alberta plans to take regarding
municipal concerns, it is proposed that
Edmonton City Council’s submission
recognize both the short-term and the
long-term.
 The short-term is defined as the 2006-07
provincial budget year. The long-term
would include the Minister’s Council
process and the resulting redefinitions of
roles, responsibilities and relationships,
and the reallocation of funding.
 Short-Term: It is suggested the shortterm strategy focus on seeking additional
provincial funding for 2006 to be
allocated to three Council priorities:
ground ambulance services, policing,
and affordable housing. The first two
priorities are focused on the health and
safety of the City’s citizens. The third
priority responds to an important quality
of life issue for the City’s less fortunate
citizens.
 The City’s request for additional funding
for 2006 should be viewed as a short
term “bridge” aimed at maintaining the
current level of services until the
Provincial Cabinet approves the
recommendations arising from the
Minister’s Council (i.e. the “4R’s”) and
funding reallocations have been
determined. If the final report of the
Minister’s Council is delayed beyond
2006, there may be a requirement for an
additional “bridge” for 2007.
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(Page 2 of 3)
Ground Ambulance Services: The
Minister of Health has committed to
providing the same funding allocation to
the City of Edmonton for ground
ambulance services in 2006-07 as was
provided in 2005-06. Unfortunately, this
allocation does not consider the impact
of growth on the demand for services or
the fact that costs for providing this
service have risen over the past year.
Further, the Minister’s Advisory Council
on Ground Ambulance Services has not
yet finalized its recommendations for a
long-term funding strategy. Given these
factors, it is suggested that the budget
submission seek additional funding to
offset the impacts of growth and
inflation anticipated for 2006.
Police Services: In 2005, the
Government of Alberta allocated $16 per
capita to the City of Edmonton to be
used for police services. The total grant
of $10.6 million accounts for 5.6 percent
of the Edmonton Police Service (EPS)
2005 budget. In comparison, during the
1980-1993 period, the Province provided
the City with annual grant funding
ranging between $17 and $18.4 per
capita. In 1980, this grant (known as the
Law Enforcement Grant (LEG))
accounted for 20 percent of the EPS
budget but by 1993 had fallen to 10
percent of the EPS budget. In 1994, the
Province replaced the LEG with an
unconditional municipal grant provided
to the City of Edmonton as general
revenue rather than specifically toward
policing costs. In 2005, this annual
grant of $5.3 million for the City of
Edmonton was terminated and replaced
with the $16 per capita grant. As a result
City of Edmonton Submission to 2006-07 Provincial Budget
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of the removal of the unconditional
municipal grant, the net increase to the
EPS budget was $5.4 million, which
translates into a net increase of $8 per
capita.
The past 25 years have seen some
changes in the kind of challenges faced
by the EPS as well as a substantial
increase in the cost of providing police
services. Unfortunately, the current $16
per capita grant allocation does not
adequately respond to these concerns. It
is suggested therefore that the City’s
budget submission request an increase in
per capita funding to help offset at least
the inflationary impacts on the provision
of police services.
Affordable Housing: Edmonton City
Council approved Cornerstones:
Edmonton’s Plan for Affordable
Housing 2006-2011 in July 2005. The
plan recommends the City create a new
funding pool with an investment of $25
million as leverage to solicit additional
amounts from the other governments and
non-governmental organizations with the
objective of developing a lowinterest/forgivable loan pool for 2,500
additional units of affordable long-term
housing in Edmonton. The 2006
recommended budget includes an
allocation of $5 million as the beginning
of the pool.
It is suggested that the City’s budget
submission for 2006-07 request the
Province provide a proportion of the
matching funds sought for the creation
of the new funding pool.
Long-term: To achieve Edmonton City
Council’s long-term objective of
attaining financial sustainability, it is
suggested that City officials commit to
work with the Province to identify and
develop long-term solutions to the
challenges faced by the City. This will
require active participation in the
Ministers Provincial/Municipal Council
and any related initiatives.
Budget/Financial Implications
If the budget submission results in additional
targeted funding, the total revenues available
within the City of Edmonton 2005 budget
will increase. This will provide the
opportunity for a reallocation of funding
among other City priorities.
Justification of Recommendation
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(Page 3 of 3)
The strategy herein responds to some of
the City’s more important needs in the
short-term as well as to the long-term
objective of achieving financial
sustainability.
The Government of Alberta is nearing
the end of its 2006-07 budget
deliberation process therefore it is
imperative that Edmonton City Council
communicate its request for additional
funding as quickly and effectively as
possible. A letter from the Mayor will
achieve this objective.