Olds Faces Financial Challenges: How Provincial Cost Shifts are Impacting Our Town

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Olds in a Tight Spot: Costs Downloaded from Province Cause Financial Strain

Council Says Report Holds Answers

Hey Olds residents, if you’ve been wondering why the town’s finances are in such a tight spot, the council has something to say: check out the new report. They claim it’ll clear up a lot of your questions about rising costs and dwindling resources.

The Root of the Problem

In a nutshell, the provincial government has been shifting costs onto municipalities like ours without giving us the necessary funds to cover them. The council recently laid out a report highlighting 20 ways this so-called “downloading” is impacting Olds, and it’s not a pretty picture.

Take the Municipal Sustainability Initiative, for example. This grant used to bring in around $2.1 million annually from 2014 to 2021. But those days are over. Now, we’re looking at a $1.1 million hit for 2022 and 2023.

And traffic fines? The town used to keep a decent chunk, but now we’re handing over a whopping 40 percent to the province as of April 2020. Last year, the financial blow was a hefty 49 percent.

Homelessness and Housing Woes

The report doesn’t pull punches when it comes to homelessness either. There’s no provincial funding to tackle this growing issue, but we’re still expected to manage it. And while the province and federal government encourage the development of affordable housing, they leave us to deal with the fallout. We’re facing both capacity and financial challenges on this front, with local governments having to foot the bill for a problem they didn’t create.

There’s also a mandate for municipalities to create housing management bodies (HMBs) for senior facilities. The province sets the rent caps and determines the costs, but any shortfalls? Yep, those fall on us, covered by property taxes. Plus, the costs of replacing and repairing capital assets add another layer of financial strain.

Firefighting and Wildfire Response

Wildfires are becoming a more frequent nightmare. While the town is happy to help out when disaster strikes, the province’s cuts to wildfire response funding mean we’re shouldering more of the burden. Our municipal fire services and volunteers are stretched thin, which in turn weakens our local fire protection.

The Bigger Financial Picture

Councillor Darren Wilson highlighted the broader issue: Alberta’s municipalities collectively need $1.7 billion to cover costs, but they’re only receiving $700 million from the province. And this doesn’t even factor in the loss of tax revenue when big businesses like SNDL left town.

Chief Administrative Officer Brent Williams pointed out that while it’s not fair to blame the provincial government for every financial woe, their policies are a significant part of the problem. He noted the infrastructure, particularly sanitary water systems built 50 to 70 years ago, is now aging and in dire need of attention.

Williams made it clear: without new revenue tools or restored funding, the future looks bleak. And then there’s the $270,831 the town had to cover in retroactive pay for RCMP officers due to decisions made without our input.

Unpaid Provincial Property Taxes and Carbon Tax Impact

Williams didn’t hold back on another sore point: the provincial government isn’t paying its own property taxes. Add to that the federal government’s carbon tax, which has hit the town hard—costing us $34,020 in 2020 and ballooning to $90,532 in 2023.

Councillor Harvey Walsh noted that the local co-op alone has shelled out $6 million in carbon tax over the past few years. When you mix the carbon tax with the provincial downloading, it’s easy to see why our finances are in such a mess.

Planning for the Future

The report is especially timely as the council and administrative staff gear up to tackle the 2025 budget. Councillor Wanda Blatz pointed out that the impacts of provincial downloading are forcing the town to cut services and cope with rising costs. She stressed the importance of sharing this information with residents so they understand the challenges.

Councillor Heather Ryan agreed, suggesting the findings be communicated to MLA Nathan Cooper to highlight the effects on our community. Mayor Judy Dahl backed the idea of drafting a letter if the council deemed it necessary and urged residents to dive into the report for answers to many of their questions.

Moving Forward

In the end, the council voted to accept the report for information. It’s clear that Olds is navigating some tough financial waters due to provincial downloading. The town’s leaders are working to communicate these challenges and find ways to manage the impacts.

What do you think about all this? Do you agree with the council's assessment, or do you see things differently? Share your thoughts in the comments below. We want to hear from you!