New Report Shows AB Cities Must Rethink Spending Habits

Alberta, December 24th, 2018 – The Canadian Federation of Independent Business today released its ninth edition of the Alberta Municipal Spending Watch Report which reveals that between 2006 and 2016 inflation adjusted municipal spending in the province increased 62 per cent– two and a half times faster than Alberta’s population growth of 24 per cent over that period.

The report examines 182 municipalities in Alberta with a focus on the province’s the most populated cities. Analysis shows Alberta’s cities have their work cut out to curb excessive spending (see Table 1 below for a summary of the results). Out of the 18 cities, only three ranked in the top 20 overall (with 1 being the best and 182 being the worst).

“Excessive municipal spending leads to increases in property taxes which has been a major pinch point for small business owners who have struggled through a difficult year,” said Amber Ruddy, Director of Alberta. “Current municipal spending patterns are unsustainable, and may have huge implications on the profitability of small business owners in this jittery economy,” added Ruddy.

To bring municipal spending back to sustainable levels, some of CFIB’s recommendations include: limiting spending to no more than inflation and population growth, implementing sustainable wage and benefit policies, and contracting out services to the private sector where appropriate to ensure fiscal restraint. To see the full list of recommendations and the report, click here.

Alberta’s Cities (listed worst to best by overall provincial rank)