Police Fines and Penalties Revenue Sharing

Subject Social
Year 2026
Status Adopted - Active
Sponsor - Mover
Mundare, Town of
Sponsor - Seconder
Hanna, Town of
Active Clauses

IT IS THEREFORE RESOLVED THAT Alberta Municipalities advocate for the Government of Alberta to amend section 162 of the Traffic Safety Act, Revised Statutes of Alberta 2000, Chapter T-6 to distribute fines and penalties under the Act to those municipalities receiving policing services under the Provincial Police Services Agreement at the same percentage that these municipalities pay for policing. 

Whereas Clauses

WHEREAS section 162(2) of the Traffic Safety Act states: “Subject to subsection (4), fines and penalties imposed under this Act in respect of contraventions occurring in a municipality for which policing services are required to be provided under section 4(5) or (6) of the Police Act belong to the municipality that is required to provide the policing services”; 

WHEREAS section 162(3) of Traffic Safety Act states: “Subject to subsection (4), fines and penalties imposed under this Act in respect of contraventions for which informations are laid or violation tickets are issued under the Provincial Offences Procedure Act or notices of administrative penalty are issued under the Provincial Administrative Penalties Act by peace officers employed by a municipality belong to that municipality”;  

WHEREAS as of April 1, 2020, municipalities/municipal districts/counties receiving policing services under the Provincial Police Services Agreement (PPSA) are required to pay a portion of policing costs; 

WHEREAS the changes to the Police Funding Model (PFM) will cause a financial burden on the PPSA municipalities; 

WHEREAS the intent of Section 162 of the Traffic Safety Act is that fines should be distributed on the basis of who pays for the policing; and  

WHEREAS despite the intent of the Traffic Safety Act, PPSA municipalities do not receive a share of the fines and penalties. 

Resolution Background

BACKGROUND: 

Prior to October 31, 2005, Section 162 of the Traffic Safety Act stated: 

Disposition of fines and penalties (in effect prior to October 31, 2005) 

162(1) Subject to subsection (2), any fine or penalty imposed under this Act belongs to the Crown in right of Alberta. 

(2)  Any fine or penalty imposed under this Act in respect of an offence occurring in 

(a)    a municipality that is an urban area, belongs to that municipality, 

(b)    a municipal district or Metis settlement, other than on a highway designated as a primary highway pursuant to the Public Highways Development Act, belongs to the municipal district or Metis settlement, and  

(c)    an Indian reserve, other than on a highway designated as a primary highway or a highway designated as a secondary road pursuant to the Public Highways Development Act, belongs to the band. 

(3)  For the purposes of subsection (2)(c), “band” and “reserve” mean a band and reserve as defined in the Indian Act (Canada). 

After October 31, 2005, the Traffic Safety Act was changed so that traffic fines were distributed based on the “who pays for policing model”.  

Municipalities that are not policed under the PPSA, and municipalities that pay for a community peace officer, receive 60% of the specified fines/penalties that are issued in the municipality under the Traffic Safety Act, whereas the province receives 40%. 

This proposed resolution, as of 2030-2031, would mean PPSA municipalities receive 18% of total fines and penalties collected in their boundaries, whereas the province would receive 72%.  

There are 278 municipalities included in the PPSA. These municipalities are paying a portion of the policing costs but do not receive any portion of the fines/penalties issued in the municipality. 

Based on estimates received from the Government of Alberta: 

  • The Town of Mundare (population 858) will see a 188% increase from 2025-2026 ($43,500) to 2030-2031 ($125,500).   
  • The Town of Hanna (population 2,394) will see a 157% increase from 2025-2026 ($173,112) to 2030-2031 ($443,838).  
Alberta Municipalities notes

ABmunis is preparing correspondence to the appropriate ministry.