Major city projects could be on shaky ground in the lead-up to the provincial budget, with no guarantee funding promises will be kept.
In Edmonton, the city is relying on provincial grants to build the southeast LRT line, new fire stations, bike lanes and transit upgrades.
Mayors and reeves from all over the province grilled ministers Thursday about the impact of the upcoming provincial budget on their municipalities.
Edmonton Coun. Amarjeet Sohi wanted assurance that projects already approved for provincial grants would go ahead as planned.
Municipal Affairs Minister Diana McQueen would only say that any answer would have to wait until the budget is tabled on March 26.
The future of the southeast LRT line relies on $300 million in provincial grants. The municipal affairs minister has given no clear indication if that funding commitment will be met. (City of Edmonton)
Sohi said losing approved grants would be a huge blow to the city, as many of these projects have been in the works for years.
Still, Sohi is cautiously optimistic the province will come through.
“It wasn’t directly ‘yes,’ but it wasn’t a direct ‘no’ either. So I think there’s hope,” he said.
McQueen has given no hints about how cities will be affected by the budget, except to say “tough decisions will have to be made.”
She said she knows how difficult it is for cities to deal with infrastructure needs and she has taken those concerns to the budget table.
Last week, the province topped up the Municipal Sustainability Initiative (MSI) fund with $400 million for 2014 to build infrastructure needed to accommodate growth in towns and cities.
Still, Helen Rice, chair of the Alberta Urban Municipalities Association (AUMA), said cities are bracing for the possibility there may be fewer dollars in that fund next year.
“They may decide to stretch the MSI funding time frame out,” Rice said.
“But we are just very tentatively optimistic.”
Mayors also brought up the need to diversify the province’s economy, so they don’t have to deal with this financial uncertainty every time the price of oil falls.
Advanced Education Minister Don Scott said the province plans to invest in new research to make sure that happens.
