LRT, other city projects in jeopardy if province cuts grants, Mayor warns
'It’s why we can’t have nice things in Alberta,' Edmonton mayor says of provincial oil dependence
The future of major city projects, like the souteast LRT expansion, could be in jeopardy if the province makes cuts to municpal grants to make up for a $7-billion revenue shortfall, Edmonton's mayor said Monday.
Don Iveson said he’s most concerned about funding for the LRT expansion. In 2014, the Redford government promised $250 million from the Alberta’s GreenTRIP fund to pay for the project.
“If there were to be reneging on commitments around provincial funding for that project, that would jeopardize the entire thing,” Iveson said.
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While he has not been presented with any cuts so far, Iveson said the city is likely to feel the effects of the province’s financial woes.
“We’re hearing the same rumblings as everyone else, that everything is on the table,” Iveson said. “Twenty per cent of their budget vaporized.”
He said the effect on municipalities and post-secondary institutions each time the price of oil drops is too disruptive. He wants the province to ease its dependence on oil revenues, so the city can plan ahead for infrastructure projects.
“It’s why we can’t have nice things in Alberta,” he said.
“I urge the premier to have the fortitude to remedy that, rather than patch it over for a few more years until oil prices come back.”
The mayor said he’s most concerned about infrastructure grants, but the city could also be facing layoffs or a tax increase if their operating grants are cut.
The city won’t know what cutbacks, if any, it faces until the provincial budget is officially tabled in the legislature.