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Vol. 15, No. 37, Wednesday, Aug. 12, 2020 www.LamontLeader.com
Counties angered by Provincial assessment proposal Staff cuts or massive tax hikes could result, residents need to contact MLA to stop the change BY JOHN MATHER Counties across rural Alberta are very worried about the provincial government’s plan to change the assessment model for regulated properties such as wells and pipelines that was recently announced. In Lamont County, Reeve David Diduck is very angry at the proposal which was delivered to rural municipalities by the Rural Municipalities Association on July 22, just prior to a long weekend. Diduck said the municipalities had until the end of August to provide feedback. “The unfortunate part of this is that the window for feedback is when people are on holidays, the MLAs have just ended the legislative session and on holidays… a number of our staff are away. “This isn’t something we can sit idly by on,” he said. “This is something that requires action and it should be fairly immediate.” The proposal, which has been prepared by a committee of the government that has been meeting since December would give oil and gas companies a break on municipal property taxes and would deal massive blows to the revenues of rural governments. According to Al Kemmere, president of the Rural Municipalities of Alberta, if the overhaul of the provincial rate assessment model is pursued rural councils would be forced to balance their budgets through steep residential tax hikes or deep cuts to municipal services. In Lamont County, Roberta Malysh said most of the numbers are derived from the RMA figures where four different financial options were described. “Most of the numbers are derived from the RMA review,” said Malysh, Chief Financial Officer for Lamont County. “Those numbers were provided to us. There’s no transparency in the numbers provided by MunicipalAffairs for scenarios A, B, C and D so it’s difficult to get a good
and a 19.3 percent. understanding of them.” If staff cuts were to be used to make She said all options have affects on mill rates, a loss of revenues, and what up the shortfall those reductions would mean a reduction of may be impacted full time employthrough staff reducment by between 15 tion. percent and 28.2 per “We have no inforcent. mation on this yet, Malysh said the and how can we posCounty hasn’t sibly project into received anything future years,” she from the government added. yet, just material The County is profrom the Rural jecting a rough loss Municipalities of $4 million in 2020 Association. due to unpaid taxes Malysh said the by oil and gas comchanges would affect panies, because the linear taxation and County has no abilitaxation on the ty to force oil and machinery and gas companies to Lamont County Reeve equipment taxes, the pay and even less David Diduck County charges. ability to collect Malysh defined linfrom bankrupt comear tax as an assesspanies. ment of linear propA request to be erties which are heard at the Alberta wells, pipelines, Court of Appeal on telecommunication collections earlier systems, railway and this year was rejectelectrical utilities. ed, leaving the counThe assessment are ties across Alberta done by municipal no recourse to colaffairs and then the lect unpaid taxes County calculates the from bankrupt comtaxes on that assesspanies. ment. Because of the “If the province Covid-19 pandemic assesses the properLamont, like many other municipalities, granted exten- ties, we are obliged to charge taxes,” sions on tax payments this year. To stated Malysh. “With the four scenarios provided to date only 16 percent or $3,099,309 has been collected leaving $15,891,287 or us,” said Diduck “The best case scenario would see a five per cent reduc83.7 per cent yet to be collected. The current taxes for oil and gas tion in tax revenues while the worst properties in the County is $9,462,783 case scenario would see a nine per cent reduction.” with a further $592,167 in arrears. Putting that into a dollar amount,” he But, based on the potential changes presented by the province and using said, could be roughly a $2-million loss their numbers, the County could be in first year and the County has no idea required to hike its residential tax rate for ongoing years. Diduck plainly states staff cuts aren’t by between 43.3 per cent and 81.4 per cent and the non residential tax rate really an option. “Right now we couldn’t readily cut could go up by between 9.4 per cent
... the County could be required to hike its residential tax rate by between 43.3 per cent & 81.4 per cent
staff,” he said. “We’re in the midst of a severe overland flooding situation where our roads and drainage systems have been totally decimated.” “We need staff and boots on the ground to get this repaired and we’re going to have to find some dollars somewhere to get this repaired.” Reductions in staff is just one of the alternatives, he said, but right now neither it or an increase in taxes is a great scenario. He said there are really no alternatives to Lamont County or any other county to absorb this type of proposed hit to their revenues. “There are certain levels of services the ratepayers expect and right now we’re providing them. “But if this goes through then those services will have to get cut, taxes will be raised and staff reductions may happen.” He added the recent intermunicipal collaboration framework agreements will be impacted. “What we agreed to six months ago might not be affordable anymore.” Further, he stated, urban communities with in the County would be affected. “Some of the costs that result from the reduced assessment will impact the education tax and those costs will have to made up by the urban communities.” Diduck said the rural municipalities haven’t formally met, but in a Zoom meeting of several northeastern counties they agreed to work together. “We’re presenting a united front and we’re all vehemently opposed to the assessment model. We’ll advocate to our MLA and municipal affairs to get the message across that this isn’t acceptable.” He added he wants residents to talk to the MLA (Jackie ArmstrongHomeniuk). “That’s an absolute necessity,” he said. “They’re the ones to get the message out to our MLA that this proposal is not a viable option for them or Lamont County.”