Operational Transit Funding for Small to Medium Sized Municipalities

Subject Infrastructure
Year 2022
Status Adopted - Active
Sponsor - Mover
Olds, Town of
Sponsor - Seconder
Didsbury, Town of
Active Clauses

IT IS THEREFORE RESOLVED THAT Alberta Municipalities advocate for the Government of Alberta to ensure sustainable and predictable operating funding opportunities be expanded under the new Rural Transit Fund for small to medium sized municipalities to begin their transit planning journey.

FURTHER, BE IT RESOLVED THAT the Alberta Municipalities advocate for the Federation of Canadian Municipalities (FCM) to ensure the new Rural Transit Fund be expanded to include further operational funding, outside of the Active Transportation Fund and the Zero Transmission Fund for small to medium sized municipalities. 

Whereas Clauses

WHEREAS one in five Canadians live in rural communities. Rural1 communities in Canada account for nearly 30% of the nation's gross domestic product;2 

WHEREAS the Government of Alberta has communicated, “As Alberta’s economy and population grows, public transportation provides safe, accessible, affordable and environmentally sustainable transportation options to connect Albertans to work, recreation, services and each other; 3

WHEREAS eighteen (18) Alberta municipalities, out of approximately 350, have the ability to provide transit services through established infrastructure;

WHEREAS a majority of capital transit funding opportunities have been designed only for those established systems, and conversely, small to medium sized municipalities do not have the financial resources to take advantage of funding opportunities; and

WHEREAS the Government of Canada has communicated, “For Canadians living in rural, remote and small communities, improving the way people access goods and services, get to and from work to medical appointments, and to various destinations, presents unique challenges that require unique solutions.”4  Inter-community travel is necessary for areas outside of major travel routes for many of the vulnerable population.
 

Resolution Background

History shows that advocacy for a national transportation strategy has come to fruition by way of the first Permanent Public Transit Fund, announced in February 2021. The $14.9 billion will be provided at $3 billion per year, for the next eight years to larger municipalities. This new fund will provide cities and communities with predictable transit funding. Subsequent to that, the federal government announced a new Rural Transit Fund in March 2021. The $250 million Rural Transit Fund is dedicated to “support unique transportation solutions”5 in rural, remote and small communities, as there is no one size fits all solution. As part of the Investing in Canada plan, this fund will support the planning and deployment of innovative mobility solutions in rural communities.

“The first ever Rural Transit Fund recognizes that Canadians living in rural and remote areas and in small communities have unique transportation challenges that require flexible, tailored solutions. We'll work with communities to find the best transit solutions and provide the support to make them a reality, creating local jobs and growth, helping to tackle climate change, and building more inclusive communities.” 6  -   Catherine McKenna, former Minister of Infrastructure and Communities

On January 27, 2022, the Honourable Dominic LeBlanc, Minister of Intergovernmental Affairs, Infrastructure and Communities called for applications under three programs offered through the Rural Transit Fund. All three speak to capital funding parameters, however, two offer an operational funding component, the Zero Emission Transit Fund, and the Active Transportation Fund.7  While this opportunity is welcomed, it is one, a very small amount, and two, the funding is limited to trails, pathways, and most especially, geared towards established systems and infrastructure.

Further transit strategy advocacy:

  • There was a national call from FCM by way of an adopted resolution, Rural Intercity Transit Strategy8, speaking to the coordination of a national strategy through all levels of government in 2018. From that, the FCM in their “Building better lives with Budget 2020”9  and “Building Back Better Together 2021”10  budget recommendation submission to the federal government supported a range of rural mobility and transportation solutions. 
  • Delegates at the 2021 FCM’s annual conference adopted a resolution on Emergency Federal Support for Inter-Community Passenger Bus Service, which reinforces “the need for distinct and targeted solutions to address the unique capital and operating needs for long-distance routes.” 11
  • Canadian Urban Transit Association (CUTA) President and CEO, Marco D' Angelo, in a letter to then Minister of Transport stated: “Transit builds and empowers Canadian communities of all sizes from coast to coast. Rural inter-city bus services connect Canadians across the country to each other and to basic social services, like healthcare and education. Connected communities help to foster social equity and inclusion and give rise to economic opportunities for Canadians. In a country as vast as our own, rural inter-city bus services provide a lifeline that may be difficult to quantify, though invaluable to those who rely on it.” 12
  • The Government of Alberta completed extensive engagement to create a provincial public transportation strategy in 2014. The draft strategy, “Connecting Albertans with Each Other and the World: A Long-Term Transportation Strategy for Alberta”13  outlined seven goals, of which recommended Goal 3, speaks the strongest to inter-community transit.

This resolution builds upon the City of Edmonton’s approved 2020 AUMA resolution on Permanent Transit Funding, and association’s advocacy for stable and predictable funding for all municipalities, by highlighting the importance of small to medium municipalities having a voice in the development of the new rural transit fund and for this fund to provide operational support. The challenges for small to medium sized municipalities are very real. Just in the last few years, many provincial areas have become municipal responsibilities, without accompanying operating dollars and the inability to generate revenue as an offset to the operations of these new responsibilities.

For many of these smaller municipalities, the challenge to be able to provide forms of transit for their residents, especially the vulnerable populations is threefold: the ability to provide potential dollars towards capital projects; grant writing resources and cumbersome application processes; and finally, finding additional dollars to operate.

As seen by the table below, all municipalities over the 12,500 population have the ability for inter-community travel, where a majority of the 7,500-12,500 populations do not. 

Out of 16 municipalities, a majority have some form of transportation, and at least half of all municipalities listed, already subsidize their intra-community transit in some form or another to ensure their residents can tend their daily needs. Of these municipalities, a majority of these offerings are available to seniors and residents with mobility or intellectual disabilities. And of those, the larger municipalities have one or more busses in service, and others with vans. 

Transportation Availabilities Overview14 

 

 

Population (2020)

Intra-community

Inter-community

Subsidized

Users

Blackfalds

11,974

Yes

Yes

Yes - Part of property tax, $4.59/month

Public

Morinville

10,571

No*

No*

n/a

n/a

Hinton

10,308

Yes

Yes

Yes - 2 out of 3 services at $350,000 annually and one at 81%

Public

Physical or intellectual disability

Seniors/disabled

Whitecourt

10,229

Yes

No*

Yes - 1 out of 2 services

Public

Seniors and disabled

Olds

9,753

Yes

No*

Yes

50+ / Mobility issues

Taber

9,105

No*

No*

n/a

n/a

Coaldale

8,933

No*

No*

No longer in service

n/a

Edson

8,524

Yes

No*

No

Seniors

Mobility issues/disabilities

Drumheller

8,223

Yes

Yes

No

Ages 50+

Mobility issues/disabilities

Innisfail

7,957

No*

No*

Rural Transportation Pilot Program – discontinued

Ponoka

7,525

Yes

Yes

Yes - $10,000

Handicap

 

 

 

 

 

 

Camrose

19,333

Yes

Yes

1 is $28/household

3rd no longer in service

Public

Sylvan Lake

16,351

No*

Yes

No

Community donors

 

Brooks

15,805

Yes

Yes

In town yes/ regional no

Regional:

Government of Alberta Regional Collaboration Grant

Brooks and District Health Foundation $10,000

Seniors

Intellectual and physical disabilities

 

Public

(Medical bookings take priority)

Lacombe

14,109

Yes

Yes

Yes

Seniors/Mobility issues/Illness

Wetaskiwin

12,996

Yes

Yes

 

Seniors/Mobility issues

*Does not include taxi service.

"Lack of transportation in rural areas compounds the effects of aging and poverty by limiting access to medical and essential life needs. The problem is complex because of the vast area to be served and the reality that rarely are two or more people travelling to the same location at the same time."15   

Mayors indicate that: "In some of these communities, if you don't have good transit, it's a real disadvantage." They say it's a disadvantage to attract investment because people want to go where you have good public transit, [where] you're able to get around."16  

In order to become part of the transit solution, while small to medium sized municipalities have the opportunity to apply for capital funding, the operational funding mechanism is the greatest barrier to overcome. Including municipalities in the development of this fund is imperative and all municipalities should have a voice in the creation of programs that can complement local solutions.

Notes:

  1.  https://www.statcan.gc.ca/eng/subjects/standard/pcrac/2016/definitions
  2.  Rural Opportunity, National Prosperity, an Economic Development Strategy for Rural Canada, Infrastructure Canada, June 2019, Page 5
  3.  https://www.alberta.ca/provincial-transit-engagement.aspx
  4.  https://www.canada.ca/en/office-infrastructure/news/2021/03/government-…
  5.  https://www.canada.ca/en/office-infrastructure/news/2021/03/government-….
  6.  Infrastructure Minister Catherine McKenna  https://www.cbc.ca/news/politics/rural-transit-funding-mckenna-1.5967875 
  7.  https://www.canada.ca/en/office-infrastructure/news/2022/01/government-…
  8.  https://data.fcm.ca/home/fcm-resolutions.htm?lang=en-CA&resolution=ea29…
  9.  https://fcm.ca/en/resources/building-better-lives-budget-2020
  10.  https://data.fcm.ca/documents/COVID-19/fcm-building-back-better-togethe…
  11.  https://data.fcm.ca/home/fcm-resolutions.htm?lang=en-CA&resolution=b785…
  12.  https://cutaactu.ca/wp-content/uploads/2021/01/letter_-_transport_minis…
  13.  https://open.alberta.ca/dataset/0a906f69-00e1-418a-aeef-78e948239103/re…
  14.  Community Transportation Briefing Note, prepared by Maria Lemon, Summer Student Intern, Town of Olds, May 10, 2021
  15.  Kelly Taylor, Executive Manager, Rural Rides https://www.newswire.ca/news-releases/government-of-canada-announces-fi…
  16.  Infrastructure Minister Catherine McKenna  https://www.cbc.ca/news/politics/rural-transit-funding-mckenna-1.5967875
Alberta Municipalities notes

This resolution aligns with ongoing advocacy for improvements to transit funding, including increasing dedicated operational funding for municipalities. This resolution will be forwarded to the Government of Alberta for response and further advocacy would be recommended to ABmunis’ Board by the Infrastructure Committee within the context of related priorities and positions.