WHEREAS the Government of Alberta established the resident per diem grant under the Lodge Assistance Program in 1995, with no subsequent increase to reflect rising operating costs; AND WHEREAS the grant formula of $4.80 per occupied unit per day for lodges under 60 units does not reflect operational costs and results in a substantial requisition to local municipalities;AND WHEREAS the Government placed restrictions on the amount of rent a Management Body can charge, meaning that all lodges are limited to minimal rental formulae and have no way to recoup their losses;AND WHEREAS rural and small urban lodges under 60 units are not cost effective, and do not have the population required to increase the number of units to 60 or more;AND WHEREAS lodge efficiency is directly related to the number of units within the lodge;

THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties urge the Government of Alberta to determine an equitable formula for all lodges, and to specifically help offset operating costs by ensuring that the formula considers key factors which contribute to cost disparities between lodges, such as:1) distance of the lodge from essential services;2) population of the supporting municipalities; and 3) number of total lodge units.

The only income for seniors lodges is from rents, requisitions and the Lodge Assistance Program. The Lodge Assistance Program has remained the same since 1995 but lodge expenditures have increased dramatically. The past year was extremely difficult for many lodges, due to the significant increase in utility costs. Lodge rents have a ceiling placed on them, thereby restricting seniors lodges from receiving any more revenue on a cost recovery basis. Municipal requisitions have increased approximately 2% each year to allow for a slight increase in wages, benefits and other expenditures. Last year in order to recover from high utility costs and higher than usual vacancy rates, the requisitions to Flagstaff County and our 10 towns and villages increased 177% (from $78,178 to $216,650).

AAMDC members have addressed issues related to the financing of seniors lodges on several occasions in recent years:- Resolution 2-97S, endorsed by delegates to the Spring 1997 Convention, calls for the elimination of requisitioning powers for seniors housing management bodies, with respect to capital costs.- Resolution 8-00S, endorsed by delegates to the Spring 2000 Convention, calls on the province to “investigate innovative methods of providing funding for the construction of lodge facilities”.- Resolution ER1-00S, endorsed by delegates to the Spring 2000 Convention, calls on the province to allow seniors housing authorities to borrow funds directly from the Alberta Municipal Finance Corporation.- Resolution ER2-00S, which called for the provincial government to assume responsibility for any additional amounts of seniors housing requisitions above 1999 levels, was defeated by delegates to the Spring 2000 Convention.