Connect with us
[the_ad id="89560"]

Alberta

City of Edmonton dumping two deputy city managers, bringing in new Chief Climate Officer

Published

5 minute read

News Release from The City of Edmonton

City Manager reduces number of departments, executives in move to focus on priorities

City Manager Andre Corbould has reduced the number of city departments and deputy city managers from seven to five, reduced the number of leadership positions in the City, and introduced a broader approach to decision making within City Administration.
Departments providing services (City Operations, Community Services, Financial & Corporate Services, Integrated Infrastructure Services, and Urban Planning & Economy) will continue. The former Employee Services and Communications & Engagement departments will be considered enabling services, see the size of their leadership teams reduced, and be incorporated into the Office of the City Manager.
The City’s Executive Leadership Team will also include a new Chief Climate Officer and the Chief of Staff will take on additional responsibilities as corporate lead for anti-racism and reconciliation. “This team of leaders will ensure that beyond policy and financial matters, we are also actively considering environment and inclusion when we are making decisions about building our city,” said Corbould. The team will continue to include human resources and communications leaders, now as newly-appointed Chief People Officer & City Solicitor Michelle Plouffe and a Chief Communications Officer.
The number of front-line staff remains unchanged, although there are a number of structural adjustments across the organization
  • Some communications teams will report to the deputy city managers of individual departments, while others remain in a centralized unit focused on priority issues like climate resilience, housing and economic development.
  • One human resources branch has been dissolved, with teams moving to other areas providing similar services, and the Legal Services and Employee Services teams are together in one division.
  • Edmonton Fire Rescue Services will reduce its number of senior level Deputy Fire Chief positions from five to three, with additional Assistant Deputy Fire Chiefs added at a lower level. The new structure will enhance services such as emergency management, and workforce supports such as mental health and safety. The number of firefighters remains unchanged.
“With strategic direction set by the City Plan, Council’s budget direction to reduce spending and focus on priorities, and Edmontonians’ requirements for core services, I am confident that these adjustments will equip us to accomplish the work at hand,” Corbould continued.
The savings from these adjustments will be applied toward OP12, direction from Council to reduce spending by $60 million, to reallocate $240 million toward priority initiatives, and report frequently on results.
“Edmontonians gave a strong mandate to Council to improve core services, invest in public transit, create conditions for economic development, tackle affordable housing and climate change and build a more equitable city for all. That work started the day we took office and was further advanced through the approval of the 2023-2026 budget where Council made significant investments in those priority areas. City Council also directed administration to find $60 million in savings over four years through the 2023-2026 budget and reallocate an additional $240 million to these priority areas. That work is underway through OP12,” said Mayor Amarjeet Sohi.
“Council further directed the city manager to streamline city administration to align it with City Council priorities. The changes implemented by the city manager do that. I have full confidence in the city manager and our administration to implement these changes, and that they won’t impact frontline services. Organizational change is always difficult and everyone who has served our city has left a meaningful impact and I want to thank each person for their service. They helped to make our city a brighter place, and their efforts are appreciated. I also want to thank all our staff who help us to make Edmonton a better place each and every day. City council looks forward to continuing to support administration through this difficult work, and we look forward to seeing how they’ll find $240 million that can be transitioned to Council’s priority areas of housing, climate change, public transit, and core services,” he continued.

Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

Published on

From the Fraser Institute

By Tegan Hill

According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.

The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.

For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).

And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.

In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.

This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.

Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.

Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.

Of course, if the government falls back into deficit there are implications for everyday Albertans.

When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.

According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.

Continue Reading

Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

Published on

Better, faster, more affordable auto insurance

Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.

After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.

Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.

“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”

Danielle Smith, Premier

“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”

Nate Horner, President of Treasury Board and Minister of Finance

Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.

Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.

Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.

In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.

Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.

By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.

“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”

Nathan Neudorf, Minister of Affordability and Utilities

Quick facts

  • Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
  • A 2023 report by MNP shows
Continue Reading

Trending

X