EDITOR’S NOTE: Alberta Municipalities’ (ABmunis) September 22, 2022 annual convention included a forum featuring the seven hopefuls in the recently concluded United Conservative Party (UCP) leadership contest, which was won by Danielle Smith. Following her election as the new leader of Alberta’s governing party, she was was sworn in as Premier on Tuesday, October 11, at a brief closed-door ceremony at Government House in Edmonton. She became the province’s 19th Premier and the third woman to hold Alberta’s top political office. With permission from ABmunis, we are revisiting the forum, highlighting Smith’s responses to key issues asked in front of the 1,100 municipal leaders in attendance. Formerly known as Alberta Urban Municipalities Association, ABmunis represents villages, towns and cities in Alberta.
Alberta Provincial Police Service
In June 2020, the province released the Fair Deal Panel’s report, which included a recommendation to create an Alberta Provincial Police Service (APPS) to replace the RCMP. In October 2020, the province contracted PricewaterhouseCoopers (PwC) to conduct a feasibility study into the creation of an APPS. This study was released in October 2021, but it doesn’t answer the most pressing questions municipalities have about a provincial police service, including how the APPS will be funded and what service levels municipalities can expect. In spring 2022, both ABmunis and RMA (Rural Municipalities of Alberta) members voted to strongly oppose the APPS models proposed in the PwC feasibility study. Do you support establishing a new, independent APPS to replace the RCMP in Alberta?
Our UCP members have voted to adopt an Alberta Provincial Police Service to either augment or replace the RCMP, and the Fair Deal Panel also heard support for an APPS. I will not have a referendum because there are 10 municipalities, including Calgary and Edmonton, that have their own (police) service. Large cities do not get to veto an approach that would deliver better policing to rural residents. I will start an APPS as an augmentation to the RCMP as quickly as possible to address critical gaps in policing that involve rural property crime, mental health and addiction, human trafficking, and deployment of search and rescue. When we proceed to replace the RCMP we will ensure rural municipalities receive better service at lower cost.
Mental Health and Addictions
Alberta recorded its deadliest year on record for drug overdoses in 2021, with 1,758 deaths. There were 685 deaths reported in 2016; this number grew to 1,351 in 2020. In November 2019, a Mental Health and Addictions Advisory Council was appointed to develop a new provincial mental health and addiction strategy. The Council was mandated with identifying key actions to improve access to recovery-oriented mental health and addiction services, with a focus on primary and home care services, as well as people in crisis or in contact with the justice system. The Council’s report, “Toward an Alberta Model of Wellness,” was publicly released in April 2022. The report establishes a goal of creating “a coordinated network providing a continuum of supports (prevention, early intervention, harm reduction, treatment, and recovery) for people at risk of or suffering from addiction and mental health challenges.” The report’s recommendations “acknowledge the severity of the ongoing opioid crisis and seek to find recovery-oriented solutions, inclusive of service that reduces harm as well as other integrated health and social services.” Do you support the inclusion and appropriate funding of harm reduction services, including supervised consumption sites and supportive housing, in the provincial mental health and addictions strategy?
I support a treatment-first strategy. Anyone who wants treatment should be given access to a program that provides long-term support – from emergency admission, to inpatient treatment, to outpatient support. I think the proposal from (former Calgary Police) Chief Rick Hansen to sentence addicts who are causing harm to themselves and others in specialized treatment facilities is the correct approach. Any harm reduction approach must be coupled with a treatment pathway so we do not simply enable addiction and dependency.
Transitioning out of Provincial Systems
The recent case of Justin Bone illustrates the gaps in Alberta’s justice, health, and social services. Bone was released from the Edmonton Remand Centre on bail in late April 2022 and ordered to attend an addictions treatment centre. He has since been charged with two counts of second-degree murder. There is a pressing need to ensure that Albertans who transition out of provincial systems and institutions, including incarceration, hospitals, and foster care, receive the supports they require to successfully rejoin their communities. What solutions would you implement to ensure the successful transition of Albertans out of provincial systems back into their communities?
In the documentary, “Seattle is Dying,” the filmmakers proposed a solution that is being used in Rhode Island, where dangerous addicts are taken to a treatment centre for their incarceration and released into the community with wraparound supports when they are released. That would be the model I would like to take a closer look at to see if we can adopt it in Alberta.
Strengthening Regional Collaboration
Given the global competition for business and labour, regional collaboration is essential for municipalities to efficiently provide the planning and services to attract talent and economic development. What steps will you take to resolve inter-municipal and regional conflict, and how will you encourage and support collaboration? Collaboration is also required between federal, provincial, and municipal orders of government in order to efficiently use taxpayer dollars to provide quality infrastructure and services to Alberta residents and businesses. How will you help make this happen?
In 2006, leadership candidate Lyle Oberg saw that the education property tax was generating $1.2 billion and essentially going into provincial general revenues as education is no longer funded through this tax. He proposed changing this tax so it would stay in municipalities as the provincial contribution to capital projects. Today, the education tax generates $2.5 billion, and it will only grow. I’d like to talk to municipalities about making the change to having the provincial property tax stay in the municipalities as a permanent tax change to replace provincial transfers. In return, I’d like to see cities reduce the large tax gap between residential and non-residential properties that exists in some municipalities, and create a streamlined permit approval process to encourage businesses to locate to Alberta. Candidates in the last mayoral race proposed “mandatory yes” policies when it comes to permitting, where the permit was assumed approved in 30 days unless the government told them no and the reasons why. These two changes will stimulate more revenues and more business attraction and largely address the regional conflict described above. I look forward to consulting more on this change of approach.
Municipal Finances and Viability
The provincial and federal governments have access to revenue sources (income and sales taxes) that are closely related to economic growth. Property tax, the main source of tax revenue for municipalities, is not growth sensitive, which constrains the ability to raise the revenue needed to provide the services that contribute to a high quality of life. The result is less-than-adequate revenue available to municipal government to fund its program responsibilities. Do you believe there is a fiscal imbalance between municipalities and the provincial government? If so, how do you plan to rectify it? What tax reforms do you favour? Are there additional fiscal and legislative measures you’d implement to create a lasting, long-term solution to municipal funding?
The Local Government Fiscal Framework Act (LGFF) was passed by the legislature in fall 2019. Like any program, the LGFF has its strengths and weaknesses. One of the shortfalls is revenue adequacy. When announced, the starting amount of LGFF was set at $860 million, which is 25% below the historical average levels of the Municipal Sustainability Initiative (MSI) and Basic Municipal Transportation Grant (BMTG). In Budget 2021, the province took the disappointing step to defer implementation of LGFF until 2024 and reduce the starting amount from $860 million to $722 million. This will be 36% lower than the previous 10-year historical average of MSI and BMTG. Additionally, the funding pool is set to grow at only half the rate of provincial revenues. This presents long-term challenges for municipalities as the funding will not keep pace with Alberta’s economy or local community needs. What are your views on increasing the starting amount of LGFF and removing the 50% limitation in the revenue index factor so that annual changes in LGFF will match annual changes in provincial revenue?
As above, I’d like the current provincial property tax to replace provincial transfers so municipalities have sufficient, stable, long-term revenues that will grow over time, without having to wait for provincial approvals on critical infrastructure.
Housing
Many Albertans are increasingly struggling to access quality, affordable housing. What are your plans to deal with the current housing shortage in Alberta?
The province and municipalities both need to do an inventory of the land they own and make it available to developers and homebuilders at an affordable price. We also need to work together to streamline the permit approval process so projects can get approved and built faster. We must avoid making home ownership unaffordable by adding excessive costs through development levies and unreasonable building code requirements, some of which can inflate the cost of homes by tens of thousands of dollars. We must accept that much of the escalation in costs for homes is often due to inefficient bureaucratic approval processes, levies and unnecessary delays.
Transportation
A viable transportation system plays an important role in developing strong and sustainable communities. Investing in responsive public-transit systems can address both these issues and have the added benefit of reducing greenhouse gas emissions when people choose transit over driving their vehicles. How would you work with municipalities to develop a provincial transportation strategy to support public transit?
I think the (Calgary) Green Line (LRT) and the (Edmonton) Valley Line West LRT projects show the peril of over-engineered and risky mega projects. Bus rapid transit may turn out to be the best option for public transit, along with ride sharing, and building more complete communities so people can live and work close to home. I would take a close look at what went wrong in these projects to understand the cost escalation so we can avoid similar problems in the future.
Downloading of Costs and Responsibilities
In recent budgets the provincial government has downloaded costs and responsibilities to municipalities. This includes the significant reduction to Grants in Place of Taxes and the municipal share of fine revenue. What actions would you take to reverse the seven-year trend of downloading and passing the cost of public service onto municipal governments?
I believe the provincial property tax remaining in the municipalities will address a lot of the funding dispute. I’m happy to consider whether the items above also need to be reworked.
Fostering a Positive Relationship
Municipalities seek a positive, respectful partnership with the province; however, they feel the province treats them like subordinates rather than partners, with consultation on significant issues often rushed or lacking entirely. The ability to build a constructive relationship has also been hampered by a revolving door of ministers within Municipal Affairs. Ten different ministers have held the portfolio since 2011. Although many of these ministers had good ideas and intentions with respect to provincial-municipal relations, this constant turnover has impeded the ability to foster a consistently strong relationship between the province and municipalities. What would you change about the current relationship between the province and municipalities, and what specific actions would you take to enhance the relationship?
I am a big believer that the level of government closest to the people must have the decision-making authority and revenues to make their own decisions. I believe that to have credibility in seeking a new relationship with Ottawa based on these same principles, we have to start by giving respect and resources closer to home to our municipalities. I look forward to working with you on this.