no two municipalities are exactly alike. They all make different policy choices about which services to fund and how to fund them. But the sheer size of these differences across Alberta, and the overall upward trend in spending, should grab the attention of Albertans.
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In Alberta, municipal government spending is on the rise — and not just because of higher prices or a growing population. Indeed, most of Alberta’s largest municipal governments have increased spending in recent years (even after adjusting for inflation and population growth). That means higher taxes for many Albertans. But depending on where you live, you might be paying much more than your neighbours.
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From 2009 to 2023 (the latest year of available data), per-person spending across Alberta’s largest municipalities increased by 12.9% (on average), climbing from $3,001 to $3,389 (inflation-adjusted).
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Varied spending
Some governments have increased spending more sharply than others. For example, during that same 15-year period, local governments in Canmore, Grande Prairie County and Strathcona County all increased their per-person spending by more than 20% to reach more than $4,000 per person. And Lethbridge, the province’s fourth-most populous city, increased per-person spending by 18.6% to reach $4,423. (Again, all numbers adjusted for inflation.)
But not all municipalities share this approach to spending. Alberta’s two largest cities, Calgary (2.1%) and Edmonton (4.8%) saw relatively modest spending increases from 2009 to 2023. As a result, their 2023 per-person spending levels ($3,144 and $3,241, respectively) were around the middle of the pack.
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Airdrie, Chestermere and Cochrane — all fast-growing communities near Calgary — each spent under $2,200 per person in 2023. And all three reduced their per-person spending. (after adjusting for inflation).
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Of course, no two municipalities are exactly alike. They all make different policy choices about which services to fund and how to fund them. But the sheer size of these differences across Alberta — and the overall upward trend in spending — should grab the attention of Albertans.
Local governments have an enormous impact on the day-to-day lives of Albertans. They build local water infrastructure, maintain local roads, manage local parks and set municipal property tax rates. And yet, their budgets often receive far less public scrutiny than their provincial or federal counterparts.
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Are we getting value?
Moreover, when municipal spending grows faster than population and inflation, year after year, it raises important questions about value, sustainability and accountability. Albertans in high-spending municipalities are right to ask: Has additional spending translated into better services? Or are costs rising without clear public benefit?
Municipalities need resources to function well, but they also should use those resources wisely. Albertans should pay attention to what their local government representatives spend — and how spending levels compare across the province — to help assess whether they’re getting good value for their tax dollars.
Tegan Hill and Austin Thompson are analysts at the Fraser Institute.
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