As the municipal election heats up, here's why there is concern over campaign spending

Changes to political financing rules ahead of October's municipal election have one current Edmonton city councillor warning of an unfair playing field.

Alberta's Local Authorities Election Act was changed in October last year to allow for the creation of political parties in civic elections. A host of new financial guidelines also accompanied the change including financial support from third-party advertising, corporate and trade union donations and changes to political party spending. 

People running can self-finance their campaigns up to $10,000, but Edmontonians can only donate $5,000 to all candidates and registered parties in a municipality.

Corporations, trade unions or employee organizations can donate $5,000 to candidates per campaign period, along with $5,000 donations to registered political parties.

Donors can not combine balances to increase contribution limits to political parties, a City of Edmonton spokesperson previously told CBC News.

Expense limits for civic election candidates and political parties range from $40,000 to more than $1 million.

Transparency on where the dollars are coming from is a key issue in this election said Ward Nakota Isga Coun. Andrew Knack in an interview with CBC News.

"Under the new rules, again, you could have a person, of a wealthy business owner start up 20 numbered companies only to use that as a mechanism to donate 20 different times, going through the maximum," Knack said. 

"A labour union can't go start up 20 different subsidiaries to go and donate. So it's not a level playing field, and this is part of the challenge." 

Advocacy vs. advertising

As of Wednesday, three groups are registered as third-party advertisers with Edmonton Elections. 

These include Amalgamated Transit Union Local 569, Climate Justice Edmonton and Working Families Edmonton.

However, there are other groups such as Edmonton Forward who state that they are advocating for "safer streets, safer transit, and safer communities."

On the group's website, it says it does not receive any source of government funding.

"Edmonton Forward is funded by generous donations of concerned residents and businesses of Edmonton," the website said. 

In a video dated May 30, 2024, on YouTube, the organization lists its executive director as Abdul Abdi, a former police officer with the Ottawa Police Service who ran for the federal Conservative Party for Ottawa West-Nepean in the 2015 election. 

CBC News requested comment from the group via email but did not receive a response.

Transit union president Steve Bradshaw told CBC News registering as an advertiser is one way to further elevate the priorities of the union. 

"We want to promote candidates that are transit-friendly. We want to promote candidates that are worker-friendly. It's in our interest to be a part of this process," Bradshaw said. 

"We live in a democracy, and we have the advantage of being able to participate in the electoral process, and so it would be failing our membership if we weren't involved."

The union is among those not in favour of the provincial change to allow political parties in municipal elections in Alberta. 

"Is there an imbalance? Of course, and when there's party politics happening, you have the problem that I can now donate to the individual candidate as well as to the party, so extra money becomes available to those in the parties."

Coun. Tim Cartmell, who announced a run for mayor last November, told media at a platform launch event last week that it will be more evident after the election to what extent financial resources can impact someone's chances of running successfully. 

"On the neighbourhood level, an independent person that has got support, has got community behind them, has got some name recognition, frankly, that is as valuable as maybe the dollars are." 

However, one independent mayoral candidate and former city councillor is doubtful. 

"If you want to buy election, there are many people out there that could buy an election, I imagine. I'm not one of them, and I don't think that it's right," said Tony Caterina, who was a councillor from 2010 to 2021.

Municipal Affairs minister Ric McIver said the new rules "strengthen transparency and accountability so Albertans can have confidence in the fairness of their local elections." 

"Municipal candidates should be the focus for voters during a municipal election, not a third-party advertiser."

As part of revisions to the Local Authorities Election Act, the Alberta government reduced the limit on donations to third-party advertisers by organizations and individuals from $30,000 to $5,000 and only allow third-party advertisers to spend half of what candidates can during the election advertising period.

Rules that third-party advertisers must follow include abiding by deadlines to file a return including a financial statement, advertising contributions received and an expense limit report.

Penalties for not following rules include the cancellation of their registration as an advertiser, financial penalties and fines up to $100,000.