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LEDUC COUNTY ANNEXATION OPEN HOUSE


CITY OF EDMONTON PROPOSED ANNEXATION What is annexation? •

Legal process involving the transfer of land from one municipality to another; does not change who owns land, but rather, changes the municipal jurisdiction of the land.

Complex and mandated process governed by the Municipal Government Act and Municipal Government Board (MGB)

Municipal Government Board (MGB): – Impartial and independent board established by provincial legislation – Makes decisions about land planning matters such as annexation – Prepares a report and recommendation on the proposed annexation to be forwarded to the Minister of Municipal Affairs. The Government of Alberta will make the final decision.


CITY OF EDMONTON PROPOSED ANNEXATION Background information •

The City of Edmonton provided Leduc County with formal notice of intent on March 5, 2013, to annex two areas of land -- a total of roughly 38,000 acres -from Leduc County. • The area of land west of Highway 2 includes the Edmonton International Airport and a significant portion of land surrounding the airport. • The area of land east of Highway 2 includes a portion of the Nisku Industrial Business Park.

• The proposed annexation area is more than four times the size of the City of Leduc.


CITY OF EDMONTON PROPOSED ANNEXATION


CITY OF EDMONTON PROPOSED ANNEXATION Future growth •

The City of Edmonton argues: • its existing land supply is not sufficient to meet the demand for future growth • annexation proposals would secure 50 years worth of land

The City of Edmonton has not yet produced a growth report supporting its demands with the proposed annexations.

According to studies commissioned by Leduc County, the City of Edmonton currently has: • 20 to 30 years of residential land growth supply • 54 years of industrial land growth supply


CITY OF EDMONTON PROPOSED ANNEXATION Proposed annexation area*

Leduc County loss*

City of Edmonton gain*

900

-7%

+<1%

Area (acres)

38,779

-6%

+22%

Area (hectares)

15,700

-6%

+22%

Gross municipal tax revenue

$7.3 million

-19%

+1%

Total assessment (2013)

$1.1 billion

-16%

+1%

Farm assessment

$8.3 million

-9%

+38%

Residential assessment

$145 million

-7%

+<1%

Non-residential assessment (incl. linear)

$919 million

-21%

+2%

Population

*Values are estimated.


CITY OF EDMONTON PROPOSED ANNEXATION Impact to Leduc County ratepayers in annexation area •

Leduc County residents will pay municipal taxes to the City of Edmonton, if land they own is annexed by the City of Edmonton. • Residential taxes are 62-per-cent higher in the City of Edmonton • Non-residential taxes are 99-per-cent higher in the city.

City of Edmonton representatives have stated that the city will implement a tax protection plan for land annexed from Leduc County. • No formal tax protection plan has been discussed • Municipal taxes for residents in the annexation area will eventually increase to the city’s municipal rate

City of Edmonton has not disclosed what services it would provide to the annexation area or how these services would be funded


CITY OF EDMONTON PROPOSED ANNEXATION Tax comparison Leduc County

City of Edmonton

Change

$535.50

$237.84

44% decrease

Residential acreage (3.00 acres)

$1,467.00

$2,378.43

62% increase

Farm residence and buildings

$1,320.30

$2,378.43

80% increase

N/A

$3,639.33

N/A

$525.50

$233.40

44% decrease

Total farmland

$1,845.80

$6,251.16

239% increase

Commercial property

$7,330.00

$14,557.30

99% increase

Vacant farmland (160.0 acres)

Farm buildings (50 per cent of value) Farmland (157.0 acres)


CITY OF EDMONTON PROPOSED ANNEXATION Impact to all Leduc County ratepayers •

Services in Leduc County could change if annexation is approved. • Direct impacts to services provided by Leduc County are not yet known

Residents can expect a roughly 10-per-cent tax increase if the City of Edmonton’s proposed annexation is approved.

The land included in the proposed annexations are identified as priority growth areas in the Capital Region Plan. Loss of these lands impedes Leduc County’s ability to grow.


CITY OF EDMONTON PROPOSED ANNEXATION

Residential

Non-residential

Spruce Grove

85%

15%

Calgary

77%

23%

Red Deer

76%

24%

Leduc

75%

25%

Edmonton

74%

26%

AVERAGE (Capital Region)

72%

28%

Parkland County

71%

29%

AVERAGE (Alberta)

66%

34%

Strathcona County

59%

41%

Leduc County

37%

63%

BETTER

Residential versus non-residential equalized assessment


CITY OF EDMONTON PROPOSED ANNEXATION

Residential

Non-residential

Beaumont

96%

4%

Devon

88%

12%

Calmar

87%

13%

Warburg

85%

15%

Thorsby

79%

21%

Edmonton

74%

26%

AVERAGE (Capital Region)

72%

28%

AVERAGE (Alberta)

66%

34%

Leduc County

37%

63%

BETTER

Residential versus non-residential equalized assessment


CITY OF EDMONTON PROPOSED ANNEXATION Residential versus non-residential tax base •

Leduc County has the most favourable proportion of residential/nonresidential tax base compared to other municipalities in the capital region

The City of Edmonton is in a favourable position in relation to comparable municipalities.

Leduc County’s tax base remains the most favourable due to an ongoing commitment to foster industrial development • The Nisku Industrial Business Park is home to more than 600 businesses that employ roughly 30,000 people.

A portion of the Nisku Industrial Business Park and the Edmonton International Airport is included in the City of Edmonton’s proposed annexations.


CITY OF EDMONTON PROPOSED ANNEXATION Edmonton International Airport •

Tax revenue from the Edmonton International Airport and surrounding land is shared between Leduc County, the City of Leduc and the provincial government. 2013

2014

Leduc County

$1,221,955

14.6%

$1,043,495

11.3%

City of Leduc

$2,224,908

26.6%

$2,760,000

30.0%

Alberta Education

$2,756,767

32.9%

$2,980,800

32.4%

EIA Fire Grant

$2,172,397

25.9%

$2,415,705

26.3%

Total

$8,376,027

100%

$9,200,000

100%

The airport agreement could change if the annexation occurs, which could negatively impact the City of Leduc and Leduc County.


CITY OF EDMONTON PROPOSED ANNEXATION


CITY OF EDMONTON PROPOSED ANNEXATION Collaboration: Leduc County region •

Leduc County and six other municipalities have partnered to examine the sustainability and future governance of the Leduc County region through the Leduc Region Sustainability and Governance Study.

Leduc County has mutual-aid agreements with municipal fire services in the Leduc County region to ensure all citizens are protected in the event of a fire or emergency.

Leduc County and the County of Wetaskiwin have an agreement to share personnel. Both municipalities have a need for horticulture and sustainable agriculture services and have agreed to share these positions


CITY OF EDMONTON PROPOSED ANNEXATION Collaboration: Leduc County region •

Leduc County has a Shared Services, Goods and Equipment Agreement with the City of Leduc to supplement existing municipal resources through the Public Works and Engineering departments.

The C-line, an intermunicipal commuter bus service, is co-funded by Leduc County and the City of Leduc.

Leduc County and the City of Leduc are jointly working on an infrastructure master plan that will include the airport, studying potential efficiencies with service delivery.


CITY OF EDMONTON PROPOSED ANNEXATION Regional collaboration •

Leduc County plans to fund the $73-million Nisku Spine Road. • Four-lane road that will link the Nisku Industrial Business Park to the 41 Avenue SW interchange and the CP Intermodal Yard in the City of Edmonton. • Construction on the Nisku Spine Road is expected to begin in 2014.

Leduc County has offered to share the estimated $6-to-8 million cost with the City of Edmonton to upgrade the portion of 41 Avenue (Township 512) running east from the interchange to the Nisku Spine Road.


CITY OF EDMONTON PROPOSED ANNEXATION


CITY OF EDMONTON PROPOSED ANNEXATION Other annexations •

Town of Devon: In January 2014, the Town of Devon submitted its formal letter of intent to annex roughly one section of land, or 677 acres, from Leduc County.

City of Leduc: On Jan. 1, 2014, the City of Leduc successfully annexed 1,300 acres of land from Leduc County. Both municipalities followed a three-year joint-planning process, together completing a growth study and joint intermunicipal plan.

Town of Beaumont: On Feb. 11, 2014, Town of Beaumont council motioned to proceed with an annexation application to the Municipal Government Board for 21 quarter sections of land, or 3,320 acres.


CITY OF EDMONTON PROPOSED ANNEXATION Letter of Intent •

Leduc County and the City of Edmonton signed a letter of intent on April 11, 2012, which detailed a one-year collaborative process the two municipalities would engage in to coordinate growth.

The City of Edmonton’s annexation proposals were submitted prior to the expiration of the one-year letter of intent.


CITY OF EDMONTON PROPOSED ANNEXATION Municipal Government Board (MGB) principles of annexation 1. Intermunicipal cooperation is given considerable weight. 2. Accommodation of growth for both municipalities must be accomplished. 3. Annexation or its conditions should not infringe on the local autonomy. 4. Annexation must be supported by reasonable growth projections. 5. Annexation must achieve a logical extension of growth patterns, transportation and infrastructure servicing.


CITY OF EDMONTON PROPOSED ANNEXATION Municipal Government Board (MGB) principles of annexation 6. Each annexation must illustrate a cost effective, efficient and coordinated approach to the administration of services. 7. Annexations should demonstrate sensitivity for key environmental and natural features. 8. Coordination and cost effective use of resources should be demonstrated. 9. Annexation proposals must fully consider the financial impacts to affected municipalities. 10. Impacts on other institutions providing services must be considered.


CITY OF EDMONTON PROPOSED ANNEXATION Municipal Government Board (MGB) principles of annexation 11. Proposals developing reasonable solutions to impacted ratepayers will be given consideration and weight. 12. Proposals must be based on effective public consultation prior to and during the process. 13. Revenue sharing may be warranted. 14. Annexation proposals must not simply be a tax initiative. 15. Conditions of annexation must be certain, unambiguous, enforceable and time specific.


QUESTIONS?

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