Mayor Jyoti Gondek is advocating for the allocation of surplus dividends

Calgary Mayor Jyoti Gondek is advocating for the allocation of surplus dividends from Enmax to address urgent maintenance and upgrades of recreational facilities while also providing a financial boost to the long-term parks fund.

She will present a Notice of Motion for technical review at the Calgary City Council's Executive Committee meeting on April 15, proposing to allocate $46 million in excess surplus funds for park improvements, recreational maintenance, and placemaking initiatives in collaboration with the Federation of Calgary Communities. In her Notice of Motion, the mayor highlighted that 15 percent of city assets are in poor or critical condition, attributing this to a lack of funding for the Facilities Management Annual Investment Program (AIP). The motion states that the current funding is insufficient to maintain aging community facilities. According to the latest Infrastructure Status Report from 2020, most of Calgary's recreational infrastructure was rated as fair, poor, or very poor. An updated report was expected to be presented at the Infrastructure and Planning Committee meeting on March 6, but it did not appear on the agenda. Recently, the city council approved an additional $15 million for the Capital Conservation Grant program to support significant community lifecycle projects, but the mayor aims to direct $20 million of the excess Enmax dividend toward community recreation facilities. "This initiative underscores my commitment to revitalizing and establishing community spaces that will create lasting family and neighborhood memories," the mayor remarked to reporters on Thursday. "I believe we can invigorate our neighborhoods through tangible investments in amenities such as splash pads, recreation centers, and wading pools." Additionally, the mayor proposes using $23.15 million of the surplus funds to enhance the Enmax Parks Legacy Fund, which has previously supported projects like the Bowness Park Lagoon and the Devonian Gardens. There are currently 17 projects either in development or planned for the future. Last year, Calgary city council approved a revised method for collecting franchise fees, which were previously linked to fluctuations in the Regulated Rate Option (now called the Rate of Last Resort). Enmax announced that under the current dividend policy, the dividend will be 30 percent of the comparable net earnings or $30 million, whichever is greater. Local Access Fees (franchise fees) are not included in this revenue calculation. The latest budgeted dividend was set at $57 million, but Enmax declared a dividend of $103 million, resulting in a $46 million surplus. "This surplus is unlikely to recur, as we've changed our fee collection process," the mayor explained. Typically, any excess amount beyond budget would return to the Enmax Parks Legacy Fund. When asked if these funds could be redirected towards other needs in Calgary or property tax relief, Mayor Gondek maintained that this proposal is an appropriate use of the additional funds. "It's crucial to allocate this money wisely, especially as community associations frequently voice their struggles, with many facing deteriorating community centers and uncertainty about securing grants for initiatives like community gardens," she stated.

"This is a responsible way to reinvest in Calgary's neighborhoods, which is why I'm proposing this plan." The proposal also includes $2.85 million over three years for placemaking initiatives through the Federation of Calgary Communities, which could fund hundreds of micro-programs citywide. If approved, the Notice of Motion will be forwarded for debate at a forthcoming full meeting of the Calgary City Council.
Edited.