CALGARY — Alberta Premier Danielle Smith has responded to comments from Calgary Mayor Jeromy Farkas about property taxes, and a request for financial support for reinforcement and replacement of the Bearspaw South Feeder Main.
In its budget, released last week, the province included a 21.05% property tax increase in support of educational services, the fourth increase in as many years, said Farkas.
“The provincial government has increased their property taxes on Calgarians by 57% over four years, well above inflation and population growth,” he said
"Now, nearly 42% of every residential property tax dollar in Calgary goes directly to the province, and the city is legally required to collect this massive tax increase,” he added, comparing it to the province’s relationship with Ottawa.
“It is looking a lot like Calgary’s deal in Alberta is very similar to what Danielle Smith says Alberta’s deal is in Canada,” said Farkas. “But, for us, we want to come to the table, we want to be collaborative, we want to work with the provincial government.”
The premier responded during a press conference in Edmonton on Thursday.
“I think property owners understand they pay taxes to the municipality to do municipal things like fixing roads and potholes and snow clearing,” said Smith. “They also pay money to the province to make sure that kids get a great education."
“We heard from ratepayers in Calgary that they wanted us to keep up with growth. They wanted us to build more schools. They wanted us to address issues of complexity. Forty percent of the pressures on our education system are coming from growth in Calgary.”
The most pressure, said Smith, comes from the 600,000 people who moved to Alberta in the last five years, many arriving in Calgary.
“We heard from our parents and those who are very concerned about that. They want us to be able to keep up with that growth”, she said. “So, I would put it into perspective that Calgary ratepayers are paying for Calgary students. Our requisition for them is $976 million from homeowners."
Smith pointed out the province is sending $2.24 billion to Calgary for operating expenses of the Catholic School District and Calgary Board of Education.
“We also give additional money to the Francophone board. We also fund $144 million in charter schools, which is 100% paid for by the province,” she said. “We will also fund up to $3.73 billion in new schools,100% paid for by the province.”
Calgary’s city council executive committee heard $609.5 million is required to complete work on the Bearspaw South Feeder Main replacement, adding to the more than $1 billion in borrowing for infrastructure maintenance already approved for this year’s budget by city council.
Speaking at a media update on the feeder main work on Thursday, Farkas asked for the province’s help with financing, saying it's an investment in Calgary’s future.
“If the premier is listening today, I would simply say this is a moment to demonstrate the (province’s) confidence in Calgary to invest in this city and help us move forward as we future proof our infrastructure, grow our population, create jobs, generate wealth, and build the next generation of prosperity,” said Farkas.
“I'm pleased to see that they're accelerating the construction, and we look forward to seeing what that plan looks like,” said Smith at her Thursday press conference. “I believe that our department, both municipal affairs and tech transportation, which also helps to build municipal regional water services are watching that.”
And the financial assistance?
“Well, let's be frank, they have $4 billion in their surplus fund, they have, I think, $600 million that had been allocated in previous years for capital spending,” said Smith.
“They have the money to pay for it. They just have to make the decision to pay for it.”
