Achi news desk-
Premier Danielle Smith told reporters Wednesday that the Alberta government is “ready to assist if (the City of Edmonton) would like to ask us for assistance.”
Smith said her government had “received a number of reports which are of concern to us.”
He did not elaborate on exactly what those reports or concerns were other than to say that the city was facing some serious financial challenges.
Those are not surprising and the city has asked the province for help in solving those challenges.
City councilors have been vocal about Edmonton’s financial struggles, especially after approving a 6.6 per cent tax increase in November.
Recently, multiple organizations and city departments have asked the city council for financial support.
At the city planning committee meeting on March 19, city councilors were told that 322 Edmonton Transit Service buses need to be replaced in the 2023-2026 budget cycle, costing $257.6 million.
City councilors questioned staff about where that money could come from as the city approaches its debt limit.
According to a spokesperson for the City of Edmonton, debt servicing is allowed up to 21 per cent of city revenue, although emergencies would allow debt servicing up to 26 per cent of city revenue.
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As of March 12, the city was expected to use 81.2 percent of its tax-supported debt service limit and 51.7 percent of its total debt service limit.
“The City of Edmonton has set a debt limit policy that is stricter than the Municipal Government Act (MGA) limit, so no, we are not approaching the MGA limit,” Melanie Reid of the City of Edmonton wrote in an email in response to Questions Global News.
He added that the city’s budget process and financial reports are public and that financial statements are audited annually and available online.
“The City of Edmonton complies with our guiding legislation in all aspects of our operation, including our financial policies, which are well within the legislative limits,” Mayor Amarjeet Sohi said in a statement Wednesday.
“We have a collaborative working relationship with Premier Smith and cabinet and will continue to advocate on behalf of Edmontonians for the stable and fair funding we need. It was clear from the premier’s comments today that there are no audits or audits planned for the City of Edmonton.”
Also on Wednesday, NDP Leader Rachel Notley called out Smith citing concerns about a “fear and smear” campaign.
“If the UCP were really concerned about the fiscal health of Edmonton and any other municipality, then I would suggest they start funding them more appropriately in line with what they committed to when they ran for office,” Notley said. to reporters.
Sohi has written open letters to provincial ministers asking for financial support for day shelters, transit safety, community safety and housing.
Smith is also offering help after learning that seven senior staff members have left the City of Edmonton in the past year.
“My staff have reached out to Mayor Sohi’s staff to let them know that we are ready if they need any specific assistance,” he said.
Pihêsiwin ward councillor, Tim Cartmell, told Global News that was not necessary.
“When that number of executives leave, then I think there is something to talk about, something to consider, something to reflect on. But I don’t think the state’s help is needed for that,” he said.
Reporters asked Smith why she was voicing concerns about the City of Edmonton and not the Medicine City Hat that saw its mayor sanctioned recently.
Smith said Medicine Hat is in a better financial position than the City of Edmonton.
“It looks like the provincial government, in different cases, has identified certain municipalities because of ideological differences,” Mount Royal University political science professor Lori Williams said Wednesday.
Reporters asked Civic Affairs Minister Ric McIver if he shared the premier’s concerns.
“I would say Edmonton is safe and secure in the hands of the elected City of Edmonton council,” McIver responded.
Smith said the province would not intervene unless the City of Edmonton requested assistance.
& copy 2024 Global News, a division of Corus Entertainment Inc.
