Oil prices should have 'zero relevance' on local infrastructure, Calgary mayor argues

As Calgary races to strengthen its aging water system this year, Mayor Jeromy Farkas is calling on the provincial government to make a strong investment in municipal infrastructure.

Affordability is top of mind in Alberta, Farkas said, as the provincial government prepares to table its budget on Thursday. He stressed the need for the province to help Calgary, and other cities and towns around Alberta, bridge the gaps they face in infrastructure funding.

"It’s important for us to recognize that there’s a cost no matter what we do. We can either pay modestly now or we can pay massively later," said Farkas on Tuesday.

"We want to take the bull by the horns, and we want to address this issue here and now rather than just punting it to future taxpayers. And that's what my hope for the provincial government will be."

Farkas added that more funding to update leaky pipes in the city's aging water system could make Calgarians' utility bills more affordable.

Water infrastructure has absorbed much of city hall's attention this year as it works to build a new Bearspaw feeder main, after a pair of catastrophic pipe breaks in recent years.

Premier Danielle Smith has primed Albertans to expect a "tough" budget this week and "significant" deficits in the future, as a result of low oil prices. In November, Finance Minister Nate Horner estimated the province would finish the fiscal year with a $6.4-billion deficit, which is $1.2 billion higher than the estimate provided in last year's budget.

But earlier this month, Smith said the province still plans to support building infrastructure.

Farkas argued the health and reliability of local infrastructure can't rest on resource revenues.

"The price of a barrel of oil has zero relevance on whether or not a Calgarian should be able to get safe, reliable drinking water out of their taps," said Farkas. 

"It's a very misguided model to somehow link the price of oil with reliability of core infrastructure needs. So my hope is that we can move beyond that."

Smith said on Tuesday the province is feeling increased pressure on its expenses partly due to declining revenue from its natural resources.

"We’ve been accustomed to having a higher amount of resource revenues in order to be able to balance the budget," said Smith.

"With the additional pressures we have of unprecedented population growth, it’s put us in a position where we had to make some tough choices."