CALGARY -- Calgary city councillors went over recommendations Monday on how to deal with a $73 million shortfall in provincial funding.

The money was originally allocated for capital projects under the Municipal Sustainability Initiative (MSI), first introduced in 2007 by the Ed Stelmach government.

Successive provincial governments have been decreasing their contributions to the initiative year over year, with the newly-elected UCP government following suit.

Premier Kenney announced a $73 million reduction in funding to the MSI in the budget released October 2019.

In addition to the decreased MSI funding, the province removed the City Charters Fiscal Framework that will further reduce funding from $500 milllion to about $455 million beginning in 2022-23. 

It’s left the City of Calgary with a hole to fill in its own finance books and what administration has noted to be a $5.7 billion gap in infrastructure funding as of the year 2017. 

Administration is now recommending a $60.4 million cut to its 2020 budget and then using $12.6 million from capital reserves to deal with this latest shortfall. 

Some of the proposed cuts on the table now include fewer buses and LRT cars. It’s estimated public transit will take the biggest hit with a $10.5 million capital budget cut projected. Another five million dollars will be cut from refurbishment to CTrain cars. 

Acting Transportation GM Doug Morgan, said the city was set to purchase 15 new CTrain cars, but will now have to wait at least 18 months to do that. In the meantime, old U2 cars will be used that are three times more likely to break down and could impact services. 

Also suggested is the delayed construction of a fire station in northeast Calgary and an artificial turf field at Tom Brook Athletic Park.

Additionally, $860,000 is recommended as a cut for two multi-use pathway projects, along with $500,000 taken from pre-development funding for affordable housing. 

Administration adds that roughly $225 million worth of capital projects will be delayed this year and moved to 2021 or further down the road.

Calgary’s four major projects — the new arena, the Arts Commons renovation, BMO Centre expansion and field house —were not included in this review.

Council has voted to postpone its discussion on capital budget changes. It will not reconvene at 1 p.m. on February 4 to discuss further and make final budget decision. A public hearing is also schedule for that day.