News

AAMDC's recent CONTACT newsletter provides information regarding Alberta's Wetland Policy and a link to ESRD's fact sheets. 

Federal budget 2015: Highlights of Joe Oliver's fiscal plan

By Laura Payton, CBC News Posted: Apr 21, 2015 4:18 PM ET Last Updated: Apr 21, 2015 4:18 PM ET

The federal budget tabled in Parliament Tuesday includes tax breaks meant to appeal to voters in the coming election, while returning the Conservatives to surplus after seven years of deficits. (Sean Kilpatrick/Canadian Press)

Federal Budget 2015

Finance Minister Joe Oliver has tabled his first federal budget in the House of Commons.

Here's a look at the budget's key points:

• $1.4 billion surplus this year, down from $6.4 billion projected a year ago and $1.9 billion in November.
• Economy expected to grow by 2 per cent this year.
• Annual contingency fund cut by $6 billion over next three years.
• TFSA annual limit raised to $10,000 from $5,500.
• Small business tax rate cut to 9 per cent from 11 per cent by 2019.
• Accelerated capital cost allowance for industry extended 10 years.
• $360 million this year to pay for Canada's mission against ISIS.
• Annual hikes of 3 per cent for National Defence, which has let billions in funds lapse in recent years.
• $18 million this year to fight terrorism – rising to $91 million in five years.
• $94.4 million over five years for cyber security.
• SIRC, the CSIS watchdog, sees budget doubled to $5 million.
• Seniors at age 71 can leave more money in tax-sheltered Registered Retirement Income Funds.
• EI compassionate care benefits extended to 6 months from current 6 weeks.
• Home Accessibility Tax Credit for home renovations for seniors and people with disabilities.
• $210 million over four years to celebrate Canada's 150th birthday in 2017.
• Interns will be brought under the Canada Labour Code.
• $1.1 million a year to promote Canadian seal products.
• $75 million to implement the Species at Risk Act for next three years.

Flagstaff County invites tenders for the sale of the following:

1. Used Scale Shack –
 Shack was built in 2004 on frame and 2 - 5000lb axles.
 Comes with heater, a/c, small fridge, bathroom, counter top and desk.
 Shack dimensions are 10’ wide x 22’ long with 9’ walls.
 This trailer has a Pintle style hitch.
This Scale shack can be viewed at the County Shop in Sedgewick and sold on an “as is basis”.
Please send bids in a sealed envelope marked “USED SCALE SHACK TENDER”.
Closing date for bidding on items is Wednesday, April 29th, 2015 at 11:00am. The highest or any tender not necessarily accepted.
For further information please contact John Guhle at Flagstaff County in Sedgewick at (780) 390-0321 or Steve Kroetch at (780) 390-0340.

Click here to read the Calgary Herald article.

Message from the LAPP Board Chair Terry Agoto - March 24, 2015 In January, Alberta Finance Minister Robin Campbell called together members of the LAPP Board and other pension Boards to "wipe the slate clean" on pension reform and start afresh with a more collaborative process that would allow each plan to travel its own road and do so with its own stakeholders. The Minister indicated he favored an approach to pension reform that was the result of employer and employee representatives working together to determine the best way to ensure the plans are well governed and sustainable, with the interests of all stakeholders balanced. The new process will see stakeholders working together on a new governance model that will give employers and employees who pay for the plan the right to make decisions about the costs and benefits of LAPP. Collaboration would also include agreeing to a Funding and Benefits Policy to set out the guidelines for how costs and benefits will be managed in the future. "My position is that employee and employer sponsors for each of the plans will be empowered to determine the pension deal," said the Minister. "That deal is decided by them, based on what's best for them." The LAPP Board welcomes this fresh approach to pension sustainability because, as we have shared with you many times, best practice and experience across this country dictate that those who bear the risks should govern the plan. It is the employers and members of LAPP who secure the pension fund with their contributions and they should determine the pension deal. In the last round of pension sustainability discussions, the government announced it would legislate benefit changes for Alberta public sector plans that would take effect January 1, 2016. However, the proposed legislation and intended benefit changes were withdrawn by new Premier Jim Prentice, in favour of increased consultation with members and employers to ensure the pension plans are "competitive" and "sustainable". At the January meeting, the Minister also advised that while discussions are taking place between employer and employee representatives for each plan, it will be up to the Plan Boards to assess and report on any risks to the plans. To that end, he asked the boards to provide a report to him within 30 days, identifying risks and strategies proposed for dealing with them. Some LAPP stakeholders have interpreted the Minister's request as expecting our Board to suggest changes to Plan benefits in our report. The Board does not believe that was the Minister's intent, nor did the Board take it that way. We did submit a report to the Minister as he requested and I can confirm that we did not recommend any changes to plan benefits as part of our report. Rather, the Board set out the strategy it intends to follow while the sponsor process is ongoing, to address risks facing the Plan over the short, medium and long term. A summary of our report can be found at this link: Summary of February 2015 Report to Minister As we have communicated to you since 2011 when the Board began its sustainability planning process, there are a number of significant risks that face our pension plan. These risks are no different than those facing other defined benefit plans across the country and around the world, and we continue to assess them and respond accordingly. We work with our expert staff and professional consultants to devise funding and investment strategies to mitigate these risks on an ongoing basis. We will continue to keep LAPP strong and healthy while our stakeholders, in their important role as Plan sponsors, come to an agreement on the pension plan they want going forward. To read more about our meeting with the Minister and the new process he has launched for pension discussions in Alberta please read: A New Approach to Pension Renewal Please keep checking back to the website for news and updates. We want to keep you fully informed throughout the process. Terry Agoto, LAPP Board Chair

Yesterday, the Government of Alberta released their budget for the 2015-16 fiscal year. This is the first budget following the steep fall in oil prices and as a consequence, many areas relevant to AAMDC members have seen a reduction or freeze in spending.

In addition to the budget, the Government of Alberta introduced a ten-year financial plan intended to provide a long term vision of the province’s financial future. This plan is designed to reduce the government’s program delivery budget’s reliance on energy revenues so that in 2019-20, only 50% of energy revenues will go towards government programs.

The following are details of the 2015-16 budget that will be important for AAMDC members:

• In an effort to manage revenue volatility in an economy reliant on natural resource revenues, the provincial government is implementing a number of changes to the Alberta government’s revenue structure. This will mean a higher proportion of funding for programs and services will come from taxes and user fees.
• Several taxation changes have been introduced in the 2015 budget, including a Health Care Contribution Levy for individuals with taxable income above $50,000, a progressive personal income tax, a four cent increase on the provincial fuel tax, an increase on the provincial tobacco tax, a reduction in the Charitable Donations Tax Credit, an increase in the provincial Insurance Premiums Tax, and a return to determining the Education Property Tax requisition on an annual basis, as was the practice prior to 2013-14.
• One tax credit has been enhanced and one has been newly introduced. The Alberta Family Employment Tax Credit has been enhanced to provide greater benefits to low and middle income families. The new Alberta Working Family Supplement will provide a refund to working families earning between $2,760 and $41,222.
• The government has continued to zero-fund the Strategic Transportation Infrastructure Program, which includes the Local Road Bridge Program and the Resource Road Program. Despite this, it remains a line-item, indicating a possible return in the future. The AAMDC has spent considerable effort advocating on behalf of members for stable, sufficient bridge funding and will continue to do so.
• Alberta Community Partnership funding has decreased by 18% to $40 million for 2015.
• Funding for the Affordable Supportive Living Initiative increased by 83%, and is being funded at $91.5 million in 2015.

• The Municipal Sustainability Initiative (MSI) has been funded at approximately $870 million for 2015-16. This includes $497 million in MSI capital funding, $30 million in MSI operating funding, and approximately $353 million in Basic Municipal Transportation Grant (BMTG) funding, which was transferred from Alberta Transportation to Alberta Municipal Affairs in 2014. BMTG funding is allocated differently for different types of municipalities. Rural municipalities receive their share based on a formula that takes into account kilometers of open road, population, and equalized assessment among other criteria. In addition to the budgeted MSI funding, the Government of Alberta provided $400 million in additional funding in the fourth quarter of the 2014-15 fiscal year, which in effect covers the difference in the MSI reduction in the 2015-16 budget.

The attached backgrounder provides more budget highlights that may affect rural Alberta. The AAMDC will provide additional details through member bulletins as they become available. To view the complete budget and its supporting documents, please click here.

Enquiries may be directed to:

Gerald Rhodes Executive Director 780.955.4077

Kim Heyman Director of Advocacy and Communications 780.955.4079

 

BACKGROUNDER: AAMDC Budget 2015 Details

PROVINCIAL FINANCES   

• The provincial government is expected to have a $5 billion deficit in the 2015-16 fiscal year. This shortfall will be covered with funding from Alberta’s contingency account.
• Alberta’s revenues are expected to decrease by $5.5 billion to $43.3 billion
• Total expenditures will see a $400 million reduction to $48.4 billion
• Alberta’s natural resource revenues are expected to drop by nearly $6 billion to $2.8 billion.
• Personal Income Tax is expected to bring in $11.7 billion in revenue while Corporate Income Tax is expected to bring in $4.5 billion.
• Revenue collected through fees and licenses will increase by over $300 million compared to the previous year.
• Revenue from Alberta’s fuel tax is forecasted to raise over $500 million compared to 2014-15.
• Total education property tax revenue for 2015-16 is forecasted at $2.25 billion, an increase from $2.1 billion in the previous year.

ABORIGINAL RELATIONS

• The Aboriginal Consultation Office will receive $15.8 million in funding.

AGRICULTURE

• Agriculture Income Support has decreased by 10% to $128 million
• The Government of Alberta will be implementing the recommendations of the Rural Economic Development Action Plan (REDAP) although it is unclear whether the funding exists to support these recommendations.
• The budget for Crop, Hail and Livestock Insurance has increased by 4% to $477 million in the 2015-16 budget.
• Funding to compensate damage to crops and livestock as a result of wildlife remains the same as the 2014-15 budget.
• The Livestock and Meat Strategy will see a 13% decrease in funding from $37.1 million in 2014-15 to $32.3 million in 2015-16.
• Funding for Agricultural Services Boards and Agricultural Societies remains the same as the previous year

COMMUNITY ISSUES

• Alberta Justice and Solicitor General has made it a priority initiative to review and revise the Law Enforcement Framework to respond to changing issues and needs.
• The provincial government will be collaborating with municipalities and other relevant stakeholders to develop a mental health and addiction policy to encourage healthy and safe communities.
• Alberta First Responders Radio Communication System funding has been reduced by approximately 51% to $64 million. This may be an indication that the project is nearing completion.
• Funding for Alberta’s Final Mile Rural Broadband Initiative will see a reduction in funding by over $2.1 million to a total of $4.3 million.
• Family and Community Support Services will be funded at the same level as the two previous budgets at $76 million.
• The budget for the operation of provincial parks is increased by 26% to over $50 million.
• The 2015 Community Initiatives Program budget saw a 4.5% decrease from the previous year.
• Library funding will be increased to $36 million
• Alberta will retain the same number of police, provincial court judges, prosecutors, and sheriffs.
• The Policing Assistance to Municipalities Grant (MPAG) saw a small increase in funding from $83.4 million to $84.6 million.
• The provincial government will be developing a new provincial housing strategy to assist in affordable housing.
• Effective July 1, 2015, fees for the use of registry services will rise, including services related to acquiring motor vehicle, land title, mortgage and vital statistics documents.
• The funding provided to assist in the hiring of new police officers is maintained at $30 million.

EDUCATION

• The Small Schools by Necessity Grant will see a reduction of nearly 10% to $53 million.
• Student Transportation Services funding will see a modest increase to approximately $287 million
• Over the next five years, the government plans to spend $5 billion on schools with $4.1 billion of that funding going towards the construction of new schools.

ENERGY

• The Orphan Well Abandonment Program Funding will be nearly doubled to over $30 million.
• Bioenergy Initiatives will see a 13% decrease in funding

ENVIRONMENT

• As the development of regional plans under the Land-use Framework continue, the budget for the Land Use Secretariat has been increased substantially to just over $30 million in the 2015 budget.
• The budget for forest management has increased significantly, from approximately $21 million to $60 million. This is likely in part due to ESRD’s strategic initiative to develop and implement an Alberta Forest Strategy to provide long-term resource management and land use planning for Alberta’s forests.

HEALTH & SENIORS

• The overall Alberta Health Services budget increased by 1.2% with the base operating grant being funded at approximately $10.86 billion.
• Funding for the Affordable Supportive Living Initiative increased by 83%, and is being funded at $91.5 million in 2015.
• Special needs assistances and project grants have been reduced to approximately $24 million in 2015.
• The Seniors Property Tax Deferral Program is unchanged from the previous year.

MUNICIPAL AFFAIRS

• Municipal Sustainability Initiative (MSI) funding is set at approximately $880 million. This includes $497 million in MSI capital funding, $30 million in MSI operating funding, and approximately $353 million in Basic Municipal Transportation Grant (BMTG) funding, which was transferred from Alberta Transportation to Alberta Municipal Affairs in 2014. BMTG funding is allocated differently for different types of municipalities. Rural municipalities receive their share based on a formula that takes into account kilometers of open road, population, and equalized assessment. In addition to the budgeted funding, the Government of Alberta provided an extra $400 million in funding in the fourth quarter of the 2014-15 fiscal year, which in effect covers the difference in the MSI reduction in the 2015-16 budget.

• Alberta Community Partnership funding has decreased by 18% to $40 million for 2015
• Support for the ongoing municipal recovery efforts in response to the 2013 floods has been allotted a total of approximately $25 million. Alberta Municipal Affairs will work with federal, provincial and municipal governments to improve province-wide all-hazard mitigation programs, which will include continued investments in flood mitigation and erosion control.
• The Ministry’s business plan identifies the continued goal of supporting municipal efforts to maximize regional efficiencies through inter-municipal collaboration and partnerships.

TRANSPORTATION

• The Strategic Transportation Infrastructure Program, which includes the Resource Road Program and the Local Road Bridge Program, continues to be zero-funded for the third consecutive budget cycle. It does remain a line-item in the budget, indicating a possibility of returning in the future.
• The Federal Gas Tax Fund has remained steady at approximately $209 million
• Water for Life capital funding has decreased significantly, and will be funded at a level of $30 million in 2015.  Water for Life operational funding was zero-funded this year
• The Alberta Municipal Water/Wastewater Partnership has remained unchanged from the previous year, and will be funded at $25 million in 2015-16.
• GreenTRIP funding has decreased by 25%, to a level of $185 million
• Alberta Transportation’s business plan identifies the need to develop policies and implementation strategies to enable regional transportation services and support rural transit strategies as a key strategic initiative. 

Thank you to everyone who attended AMSA's spring convention!  All the speakers presentations and community profiles are now available on the AMSA website. 

Government of Alberta News Release

The Government of Alberta has tabled amendments to the Municipal Government Act (MGA) to better serve Alberta’s municipalities.

The proposed legislation represents consensus items that were identified by the Government of Alberta and its municipal partners, during the extensive MGA review process.

“The legislative amendments introduced today are an important milestone for the Municipal Government Act. The proposed changes will give our communities the legislation they need to grow and thrive. We look forward to continuing to work with our municipal partners and key stakeholders over the coming months towards the completion of this important review.”

Diana McQueen, Minister of Municipal Affairs

If the Bill is passed by members of the Legislative Assembly, the MGA review will have entered the second phase of the process, as laid out in Memorandum of Understanding (MOU) signed in January by Premier Jim Prentice, Minister McQueen and the presidents of the Alberta Urban Municipalities Association (AUMA) and the Alberta Association of Municipal Districts and Counties (AAMDC).

Amendments to the legislation are in line with the recent MOU signed with municipalities and include:

Enhancing Municipal Accountability and Transparency

accountability and conduct of elected officials

public participation

open council meetings

petitioning processes 

Enabling More Efficient Municipal Operations

public notification methods

roles and responsibilities of council and administration

Enhancing Municipal Viability

municipal corporate planning

voluntary municipal amalgamation

Strengthening Municipal and Inter-municipal Planning

annexation requirements

hierarchy and relationship of plans

subdivision and development appeal board training

Addressing Emerging Issues

authority to establish civic charters

administration of offsite levies in response to a recent court decision

integrating some current policy into the MGA, in anticipation of regulation expiry dates

The last major consolidation of the MGA took place in 1995, after nearly 10 years of review. The current MGA review began in 2012 and has involved input from more than 1,200 written submissions, and more than 1,500 people at 77 community meetings.

The government and its municipal partners – including AUMA, AAMDC, and the cities of Edmonton and Calgary – will participate in regularly scheduled roundtable discussions as the MGA review continues. Other stakeholders, such as industry representatives, will be invited to discussions when appropriate.

As planned with municipal partners, another round of legislative amendments is expected in fall 2015, and proclamation of all updates to the MGA is expected by the end of 2016.

Policy areas for discussion include: provincial-municipal relations; accountability and transparency; governance; municipal viability; regional decision-making; municipal revenues; property assessment and taxation; and growth management.

For a detailed look at proposed changes introduced in the Assembly, visit mgareview.alberta.ca/whats-changing.

Click here to read the AAMDC's latest CONTACT newsletter for more information on the Small Communities Fund (SCF) grant eligibility and application details - of the New Building Canada Fund. 

Click here to read the AAMDC's latest CONTACT newsletter for more information on Transport Canada's new rail safety legislation and Local Road Bridge standard drawings now available.