WHEREAS Seniors’ Housing Authorities are not authorized by the province to borrow directly from the Alberta Capital Finance Authority; and WHEREAS Seniors’ Housing Authorities would have to become shareholders of the Alberta Capital Finance Authority under the Alberta Capital Finance Authority Act in order to access some of the lowest cost loan rates available to Alberta local governments; and WHEREAS municipalities are being requested to borrow funds from the Alberta Capital Finance Authority on their behalf in order to allow them to access borrowing at lower interest rates; and WHEREAS borrowing by municipalities on behalf of the Seniors’ Housing Authorities results in negative impacts on financial reporting and borrowing limits, or where borrowing is refused then Seniors’ Housing Authorities may be forced to borrow funds at higher interest rates;
THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties request that the Government of Alberta amend the Alberta Capital Finance Authority Act to add Seniors’ Housing Authorities as shareholders of the Alberta Capital Finance Authority.
Extract from the Alberta Capital Finance Authority Act.4(1) The share capital of the Corporation shall consist of (a) 4500 Class A shares to be allotted only to Her Majesty the Queen in right of Alberta, (b) 1000 Class B shares to be allotted only to municipal authorities, health authorities and regional authorities, (c) 750 Class C shares to be allotted only to cities, (d) 750 Class D shares to be allotted only to towns, and (e) 500 Class E shares to be allotted only to educational authorities.21 The business of the Corporation is (a) to provide local authorities that are its shareholders with financing for capital projects;
Resolution 22-06F – Amendment to the Capital Finance Authority Act (STATUS: ACTIVE) urges the Province of Alberta to amend the Alberta Capital Finance Authority Act to include Seniors’ Foundations. This resolution has been submitted to the Government of Alberta and the Association has not yet received a response.Resolution 31-05F – Senior Foundations/Lodges Requisitions (STATUS: ACTIVE) urges the Government of Alberta to amend Section 7(2) of the Alberta Housing Act to change the basis of determination for municipal requisitions to a percentage-based system with 50 per cent determined by population and 50 per cent determined by equalized assessment. The increase of $12 million in Budget 2006 for seniors housing at this time is serving as the government’s official position on the matter. No new changes to the requisition system are currently planned. The AAMDC would like to see a targeted letter writing campaign from both urban and rural municipalities on this issue.Resolution 20-04F – GST Elimination for Seniors Housing Authorities and Public School Divisions (STATUS: ACTIVE) urges the federal government to rebate 100 per cent of the GST for public school divisions and publicly funded homes for the aged. The federal ministry of finance has indicated that the government has chosen to support seniors and public schools through mechanisms other than GST elimination. Examples include several specific education initiatives and increases to the Guaranteed Income Supplement contained in the 2005 federal budget and speech from the throne.
In June 2008 this resolution was brought forward in a ministerial meeting where it was clarified that Alberta Capital Finance Authority Act will be undergoing a review and member input will be welcomed. The AAMDC will continue to work with the government when this review is initiated and advocate the issues outlined in the resolution. Resolution 22-06F also addresses Seniors Housing Authorities and the Alberta Capital Finance Authority Act. In November 2009, Municipal Affairs announced that “The Debt Limit Regulation (AR 255/2000) is being reviewed in accordance with the requirements of the Regulatory Review Secretariat to ensure the regulation’s continued relevance. The regulation provides municipalities with the authority to proceed directly to the borrowing process without provincial involvement while protecting taxpayers from municipalities that might otherwise become overextended. Municipal Affairs is proposing that the regulation be re-enacted with two amendments to the revenue calculation under section 3. The amendments would eliminate the current requirement for municipalities to account for loans made pursuant to section 265 of the Municipal Government Act and would add a requirement to adjust for revenues attributable to contributed and donated assets under the 2009 financial reporting requirements. ” This does not specifically satisfy the intent of resolution 1-07S, as municipalities are still required to borrow for seniors housing authorities. However, this regulation change does simplify the reporting process for municipalities on funds borrowed and is a development to the resolution – it justdoesnt solve the greater issue of eating up municipal debt room.