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Equitable Funding From Oil and Gas Revenues

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Resolution Category: 
Provincial Scope 4
Adopted - Expired
Drayton Valley, Town of
Active Clauses: 

NOW THEREFORE BE IT RESOLVED THAT that the Alberta Urban Municipalities Association urge the provincial government to develop and adopt a funding formula that is fair and equitable and allows urban municipalities to continue to meet the service, infrastructure, and housing needs of residents, businesses and the oil and gas industry without placing an unfair burden on the residential and business tax base of those municipalities.

Whereas Clauses: 

WHEREAS the oil and gas industry continues to be the major driver of Alberta’s economy, with an estimated $11 billion in royalties and land lease sale revenue going to the Province in 2012 alone;

WHEREAS much of the strain of accommodating the labour force for the oil and gas industry is borne by urban municipalities;

WHEREAS this situation places considerable pressure on the housing, infrastructure and services provided by those urban municipalities; and

WHEREAS virtually none of the revenues generated through taxation on oil and gas installations goes to those urban municipalities.

Government Response: 

November, 2012 -- Minister of Finance

The Minister responded to this resolution by noting that Budget 2012 provided municipalities with over $5.6 billion in direct capital support over the next three years and that the government is undertaking a comprehensive review of municipal funding mechanisms, including the Municipal Sustainability Initiative, under the Results-based Budgeting initiative. The Minister also noted that municipal funding issues will be considered by the Premier’s Council on Provincial-Municipal Fiscal Arrangements.

AUMA Notes: 

AUMA will consider this response.

AUMA Comments: 
Considers government response