More powers, but no new taxes in Big City Charters framework

From developing minor bylaws to completely redesigning funding models, the Big City Charter framework between the Alberta Government and the cities of Calgary and Edmonton has been released, with no new taxation powers.

The mayors of both cities along with the provincial ministers of finance and municipal affairs signed the agreement in Edmonton Thursday, which will give more authority to the municipalitIies over a wide range of issues.

Finance Minister Joe Ceci acknowledged the months-long speculation that would mean new taxing powers.

“There are no new taxes or additional taxation powers for the cities,” he said. “This fiscal framework will instead promote the effective and responsible use of public funds and will assist with the transition of a new arrangement between Calgary, Edmonton, and the province.”

The biggest change will be the eventual capital funding model from the province; a revenue-sharing formula tied to provincial revenues which will hopefully lead to more sustainable and predictable money going to the cities.

Calgary Mayor Naheed Nenshi said it will lead to less red tape and better administrative efficiency, which should save millions of dollars.

“You’re going to see it in many, many small ways,” he said. “When the fiscal framework is in place, that will make an enormous difference in our ability to build the kinds of thing you need.”

As for the taxes, Nenshi said that was never the intention.

“Nobody was asking for new taxes, we actually very clearly said for this phase of the charter, we want to focus on capital,” he said.

The charter doesn’t address operating budgets, which Nenshi said will have to be fixed down the line.

Aside from the fiscal framework, there are many other new authorities the cities will have.

For example, updating destination marketing fees charged by some hotels, new powers surrounding speed limits and parking, and even new tribunals to better deal with transit and parking tickets.

The cities will have more input on operations of licensed restaurants and bars, as well as affordable housing and environmental projects.

The charter guidelines will now be posted on the government’s website for 60 days, with residents of both cities able to give feedback.

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