Good afternoon. It's great to be with you. Thank you for the invitation.
As mayor of Edmonton and as chair of Canada's Big City Mayors' Caucus, which brings together 22 of Canada's largest urban centres, I'm very happy to be with you to offer some comments.
Canada's cities are economic and social engines that drive the country forward. We are hubs for innovation. We are the order of government that is closest to Canadians in every way, and we view city building as nation building. When it was launched, the 11-year investing in Canada plan was a historic opportunity for transforming our cities and our country. To realize the plan means turning this opportunity into real outcomes for citizens. To create real outcomes means Canada's cities need funding programs that are designed smartly to partner with and empower local governments.
Thus far, Canada's big cities have had a productive and respectful relationship with Ottawa, and the government has engaged with us on every step of the journey. After all, municipalities are responsible for almost two-thirds of the country's public infrastructure. That open communication has been critical.
Investing in Canada's first phase, covering rehabilitation, planning, and design work, was vital to ensure that our infrastructure was modernized and formed a strong foundation on which to activate the next phase of our bold infrastructure investments. We've welcomed the flexibility shown by Ottawa in offering phase one deadline extensions. This demonstrated the government's understanding of, for example, procurement and contracting requirements that have eaten into the original timelines.
As you will have heard from other presenters to this esteemed committee since you began your hearings last week, realizing Ottawa's phase two plans will require successful federal government negotiations with provincial and territorial governments, some of which are complete. Ours, here in Alberta, are one example.
These bilateral agreements recognize the intrinsic role of local government, for the first time really, by incorporating meaningful cost-sharing arrangements to deliver on large-scale and transformative infrastructure that positions Canada's big cities and improves our ability to compete globally.
Here in our home province of Alberta, Edmonton and Calgary account for two-thirds of the population and even more of the province's economic input. Indeed, cities are Canada's economic engine. Canada's big cities demonstrated to Ottawa that while our fiscal capacity and ability is limited, our strong suit is delivering on expertise, knowledge, and familiarity with our local and on-the-ground needs. By working with Canada's big cities methodically and systematically, the federal government has now adopted a 40% share of cost-sharing for new construction and up to 50% for rehabilitation. It requires provinces to contribute a minimum of 33%. This represents a fair and balanced share of cost allocation, leaving a smaller and more manageable chunk for municipalities to assume.
This approach recognizes not only our local government's fiscal limitations but also the reality that after these projects are built, we tend to assume 100% of the cost of operating and maintenance. By enshrining these principles in bilateral agreements, local governments have the certainty and predictability necessary to make long-term decisions about critical infrastructure. By including allocation-based mechanisms, as we've seen around the transit funding, we've improved predictability and planning, as my colleagues have spoken to.
Ottawa's engagement with Canada's big cities in infrastructure investment has been unprecedented, and we are thankful for Hon. Amarjeet Sohi's appointment as Minister of Infrastructure and Communities. I served alongside Minister Sohi for a number of years at Edmonton City Hall after we were both elected city councillors in 2007. As big a loss as it was to see him move to Ottawa and become a minister of the crown, we are reassured that we have a powerful and understanding advocate for the needs of municipalities around the cabinet table.
In fact, it's my estimation that the literacy of this government when it comes to municipal issues has significantly improved, so I look forward to the committee's questions.
Thank you.