Massive taxation increase coming

[Ken07AOVette]

https://www.vermilion-river.com/mrws...ia_Release.pdf

Impacts of Assessment Model Changes on the County of Vermilion River
County of Vermilion River, Kitscoty, AB – The County of Vermilion River was notified this week of
changes proposed by the Province of Alberta to reduce the property tax of oil and gas
companies through changes to the assessment model for regulated properties in this sector.
Council and administration are extremely concerned about the serious impacts of this
decision because it will mean an increase in residential property tax, reduction of
services, or combination of both to make up for this lost revenue.
While the stated intention of this decision is to increase the competitiveness of oil and gas
companies in this difficult economy, these changes will disproportionately benefit multinational
oil and gas companies and harm smaller companies and residential ratepayers.
In addition to this, there are no regulations to ensure that this money from the reduction in taxes
will be spent in Alberta to improve the struggling oil and gas sector here. For these reasons there
seem to be few benefits to outweigh the added costs that county residents will be faced with.
Based on the information provided to the County of Vermilion River from the Province, the
impacts to the County of Vermilion River could indicate a loss of up to 9% of tax revenue, which
equates to a loss of up to $3.9 million in overall lost revenue for the County of Vermilion River in
the first year.
To compensate for the loss of industry assessment and corresponding tax revenue, the County of
Vermilion River will have to adjust operations in one or a combination of the following:
 Increase the Residential Mill Rate up to 109.6% AND/OR
 Increase the Non-Residential Mill Rate up to 25.9% AND/OR
 Cut services by up to 45.2%
If this proposed change is passed YOU WILL BE
IMPACTED – financially through property taxes
and in a loss of services from the County of
Vermilion River. Many services provided by the
County would need to be eliminated, County
support of other municipalities or organizations
will have to be decreased or terminated, and
there would be an increase in property taxes for
residents and businesses in the County.


This is 109%, the MD of Wainwright is forecasting a 393% increase.

http://www.mdwainwright.ca/

Paying $3000 now in property tax means $14790.00 on the next tax roll?

All this means is some very rich realtors are going to grab properties when people are unable to pay over $1000 a month on property tax.

M.D. of Wainwright Stands To Lose 10 Million Dollars

The M.D. of Wainwright No. 61 is extremely concerned with and opposed to the changes to the assessment model for regulated properties such as wells and pipelines that was announced recently. This adjustment will affect the linear assessment within the M.D. of Wainwright. We have been told this is to enhance industry’s competitiveness. The M.D. of Wainwright is in support of industry in the area, but this change in assessment will jeopardize Rural Alberta.

The assessment model is the method the province gives municipalities to raise revenues through taxation. Based on the potential changes presented by the province, the M.D. of Wainwright is poised to lose between $9,453,925 and $6,979,777, or between 30% and 22% of our total tax revenue. To offset this loss the M.D. of Wainwright could be required to increase the residential tax rate by between 290% and 393% and increase the non-residential tax rate by between 37.4% and 58.4%. Raising tax rates to off-set the impacts of the assessment model change will have the effect of simply transferring taxes from industry to other businesses and residents. This draconian change to the assessment model will force municipalities to enact a reduction in service levels and intermunicipal collaboration agreements, as the above increases are not realistic for our ratepayers. These changes will impact not only our municipality, but the entire region.

In addition, municipalities requisition amounts for schools and senior housing using the assessment model. Those rates will also need to be adjusted going forward to offset the revenues lost, or those services will be reduced.

There is no guarantee that the tax savings experienced will be put back into the local economy, as a majority of the benefit will profit global companies and their shareholders, not M.D. of Wainwright residents. This is in direct contrast to what a municipality does, which is work hard to keep dollars in our community.

The M.D. of Wainwright is giving you all this information in hopes you will be able to help us save Rural Alberta. Once this legislation is passed, we are heading down a path that will result in the decay of a viable Rural Alberta. We have been told we have until the middle of August to voice our displeasure.

For more information please contact the M.D. office at 780-842-4454 or visit our website at www.mdwainwright.ca where council member contacts and staff contacts are posted.

Sincerely,

Municipal District of Wainwright No. 61 Council

This needs to be fought.


What are we doing?
The County is contacting Premier Jason Kenney, Municipal Affairs Minister Kaycee Madu, Energy
Minister Sonya Savage and MLA Garth Rowswell to express our concerns over these changes.
The County is also supporting neighbouring municipalities and the Rural Municipalities of Alberta.
What can you do?
 Please let your government officials know your thoughts on this issue.
o Premier Jason Kenney
780.427.2251 premier@gov.ab.ca
o Minister of Municipal Affairs, Kaycee Madu
780.427.3744 minister.municipalaffairs@gov.ab.ca
o Minister of Energy, Sonya Savage
780.427.3740 minister.energy@gov.ab.ca
o MLA Garth Rowswell
780.842.6177 vermilion.lloydminster.wainwright@assembly.ab.ca
 Please call your local Councillor if you have questions about this or want additional
information. A list of Councillors can be found on the County website.
 Read the RMA position paper on this Assessment change under Summary Document
and Position Statement.
The final decision by the Government of Alberta and Premier Jason Kenney on this proposal is
expected by mid to late August so we encourage you to take action now.
Dale Swyripa, Reeve
County of Vermilion River
- 30 -
Media inquiries may be directed to:
Communications
County of Vermilion River 780.846.2244 communications@county24.com

[58thecat]

brutal.

[W921]

I guess cutting their spending was never an option?

[32-40win]

Were you expecting something different? The loss of revenue in this province from O&G is going to start showing in all the new budgets of all the cities, towns and counties in this province. Then in the federal fall budget, be looking for taxes added from every direction under the sun, probably with GST as well.

[Smoky buck]

That is brutal but not surprising both the province and country are in rough shape economically

We are going to see more tax hikes in the future for the rest of Alberta and Canada too

[Who Da Fisherman]

Received the same thing for Wetaskiwin County
grrrrrr
WDF

[58thecat]

Originally Posted by Who Da Fisherman

Received the same thing for Wetaskiwin County
grrrrrr
WDF

https://lakelandconnect.net/2020/08/...sment-changes/

here too

[trigger7mm]

County of Flagstaff is saying the say bulls..t! Brutal, especially considering the way they blatantly waste money here.

[Ken07AOVette]

There are going to be people that have to take out mortgages on paid for homes to pay for property tax.

This will fall on everyone's shoulders, and then they will have to change the way rental properties are managed, so that the increase in tax is covered by the renter, which now is not possible because you can only raise rent so much per annum.

I forsee a lot more burnt properties and huge insurance claims with no new houses being built.

[Hawkeye]

I forsee a lot more burnt properties and huge insurance claims with no new houses being built.[/QUOTE]

Ken
Not trying to pick a fight with you, but my understanding is that most house insurance requires a rebuild in order to collect. If you don't rebuild, you might, at best, get fraction of the value.

I realize that your comment reflects how serious and devastating this will be for a lot of folks, and I absolutely agree with that sentiment. These are really challenging times, we are a long ways from being free from the direct effects of this virus and there will be many more consequences and difficulties in the future.

[gman1978]

Originally Posted by Ken07AOVette

There are going to be people that have to take out mortgages on paid for homes to pay for property tax.

This will fall on everyone's shoulders, and then they will have to change the way rental properties are managed, so that the increase in tax is covered by the renter, which now is not possible because you can only raise rent so much per annum.

I forsee a lot more burnt properties and huge insurance claims with no new houses being built.

Agreed, we will end up like parts of Europe that are taxed so bad that homes sell for a dollar because the tax valuation is so high no one can afford it. This could kill the acreage market like what happened in the 80's.

Counties and Municipalities have been immune to the cuts and have been getting away with huge waste as other levels of government have made cuts. Not to mention the private sector ( unless you are selling recreation vehicles and fifth wheel trailers then its boom time LOL!!) Looks like they want to push cost on the taxpayer and not make some tough decisions.

[ghostguy6]

Trudope has to get all the money he sent to Lebanon from somewhere.....

[AndrewM]

Calgary is going the same way. They all have spending problems rather than income problems!

[DougC]

Originally Posted by ghostguy6

Trudope has to get all the money he sent to Lebanon from somewhere.....

Yep, this is 100% Trudeau and Notley!!! Go team blue!!!

[Rancid Crabtree]

Originally Posted by W921

I guess cutting their spending was never an option?

You can be certain that will not be considered by the county staff !!
Given the ridiculous way red deer county operates it’s awful hard to feel bad for them. Cut the services by 50% would be a start.

[vcmm]

Kenny is Notley with a bigger bosom and smaller testies.
Another taxpayer funded career criminal.

[Sundancefisher]

Seriously. What do you think should happen?

Municipalities have been gouging oil and gas companies for years. At $120 oil...sure it’s a cost of business and not worth the political or public relations impact.

However fact is while oil prices went up...so did fixed costs like taxes. When oil prices plummeted...taxes went up.

Municipalities can either pay their fair via residents or reduce services. If taxes came down...some wells could still produce and afford to pay some taxes.

Otherwise the value of abandoning a well to reduce taxes to zero makes sense in which case there are zero taxes.

Fact is for some stripper wells and low productivity wells... high taxes makes them unprofitable to run.

Until the economy turns... there is no option.

Want to make a difference. Stop attacking oil companies and UPC and instead direct your attention to the NDP, Bloc, greens and Liberals who have destroyed our fine oil and gas sector through political attacks and sleeping with foreign lobbyists.

Start a campaign targeting the true villains.

Otherwise you are just making them laugh that you are eating your own.

[CBintheNorth]

^^^What he said.

[wildwoods]

Originally Posted by CBintheNorth

^^^What he said.

X3

[58thecat]

Originally Posted by Sundancefisher

Seriously. What do you think should happen?

Municipalities have been gouging oil and gas companies for years. At $120 oil...sure it’s a cost of business and not worth the political or public relations impact.

However fact is while oil prices went up...so did fixed costs like taxes. When oil prices plummeted...taxes went up.

Municipalities can either pay their fair via residents or reduce services. If taxes came down...some wells could still produce and afford to pay some taxes.

Otherwise the value of abandoning a well to reduce taxes to zero makes sense in which case there are zero taxes.

Fact is for some stripper wells and low productivity wells... high taxes makes them unprofitable to run.

Until the economy turns... there is no option.

Want to make a difference. Stop attacking oil companies and UPC and instead direct your attention to the NDP, Bloc, greens and Liberals who have destroyed our fine oil and gas sector through political attacks and sleeping with foreign lobbyists.

Start a campaign targeting the true villains.

Otherwise you are just making them laugh that you are eating your own.

this is Alberta based on greed for the most part....everything from oil companies to MD's etc are equally part of this greed...now reality has hit...time to cut....trim the fat and a lot of it...throw in the pandemic etc and not so good times are coming but that being said we are far better off then most....we all seen this coming cuz billions of dollars went out...time to recoup the loses...taxes.....

[Dynamic]

I personally find it ironic that the people who voted the most "pro UPC" are gonna be affected the most, and not in a good way. I'm conflicted as to whether I feel sorry for those who are going to be affected or just realize that these life long conservative voters need a hard learned lesson.

You should NOT decide who you are voting by what the politicians are saying during the election campaign but by rather what the party stands for. How do you go up to that ballot box not knowing that this government would try to offload costs to cities and municipalities? How could you NOT draw the conclusion that he was going to try to make it easy as possible for oil & gas? Kenny made it pretty clear during his campaign he was going to bat for the oil & gas industry did he not. Too many people decided not to figure out what the eventual outcome would be for voting UPC. Now everyone is shocked to find out that their taxes are might have to have to be hiked or face huge service reductions. A little bit of research (sharing Facebook memes or putting dumb stickers on your truck does NOT count as research) goes a long ways but it takes effort so people just go to the ballot box essentially blind and vote for the politician they like the best. For good or bad, you get the government you deserve.

I also find it ironic that this government that claims to be conservative and embrace conservative values are trying to prop up and industry that has burned through an extraordinary amount of money and are now in dire straights. I consider myself fiscally conservative and I am because I realize there are good times and there are bad times. I have a rainy day fund to help me when things go bad. Perhaps these oil companies that are now in trouble should of better managed their money. It was absolutley crazy there for a couple years with the money being thrown around. I have friends who told me the stories and to me t sounded like the entire industry was on a coke bender living the high life. Maybe just perhaps of saved a little for when things are not so good. Just a thought? Conservative is not just a word you through around when it is convenient. To me it looks like oil companies like the word conservative but in reality they are far from it.

Now for the other side of the argument....I lived in a rural municipality for many years and now live in a town. I will honestly admit my taxes were laughably low when I lived in the municipality. When I moved to town my taxes increased 400%. Perhaps a increase is needed in rural municipalities and maybe a look at spending is needed in town where I live to bring the number together.

[Exuberant]

'I never thought leopards would eat MY face,' sobs man who voted for the Leopards Eating People's Faces Party.

[Smoky buck]

We would see a variation of taxes regardless of the political party voted into power. The only possible difference is those who would run a debt until they are voted out and the next party inline had to clean things up

Canada and Alberta miss managed this country and tax dollars during good times and all parties are guilty of it. Yes a lot of political parties in Canada oppose oil & gas and don’t help things but let’s be honest here there is way more at play the politics effecting this sector. It is an industry that was exploited during good times without considering that things won’t run like this forever

Every party from cons to Libs are gluteness pigs who miss manage money in some fashion. The only difference is how they go about it and the sector’s they attack or promote.

Things are way more complicated then a simple change in parties is needed. This is years(Yes the Libs have been the worst in a long time) of poor management coming into light during really tough times

Sure would be great to have a different govt but in my opinion it’s more complicated then that

[Ken07AOVette]

Originally Posted by Dynamic

I personally find it ironic that the people who voted the most "pro UPC" are gonna be affected the most, and not in a good way. I'm conflicted as to whether I feel sorry for those who are going to be affected or just realize that these life long conservative voters need a hard learned lesson.

You should NOT decide who you are voting by what the politicians are saying during the election campaign but by rather what the party stands for. How do you go up to that ballot box not knowing that this government would try to offload costs to cities and municipalities? How could you NOT draw the conclusion that he was going to try to make it easy as possible for oil & gas? Kenny made it pretty clear during his campaign he was going to bat for the oil & gas industry did he not. Too many people decided not to figure out what the eventual outcome would be for voting UPC. Now everyone is shocked to find out that their taxes are might have to have to be hiked or face huge service reductions. A little bit of research (sharing Facebook memes or putting dumb stickers on your truck does NOT count as research) goes a long ways but it takes effort so people just go to the ballot box essentially blind and vote for the politician they like the best. For good or bad, you get the government you deserve.

I also find it ironic that this government that claims to be conservative and embrace conservative values are trying to prop up and industry that has burned through an extraordinary amount of money and are now in dire straights. I consider myself fiscally conservative and I am because I realize there are good times and there are bad times. I have a rainy day fund to help me when things go bad. Perhaps these oil companies that are now in trouble should of better managed their money. It was absolutley crazy there for a couple years with the money being thrown around. I have friends who told me the stories and to me t sounded like the entire industry was on a coke bender living the high life. Maybe just perhaps of saved a little for when things are not so good. Just a thought? Conservative is not just a word you through around when it is convenient. To me it looks like oil companies like the word conservative but in reality they are far from it.

Now for the other side of the argument....I lived in a rural municipality for many years and now live in a town. I will honestly admit my taxes were laughably low when I lived in the municipality. When I moved to town my taxes increased 400%. Perhaps a increase is needed in rural municipalities and maybe a look at spending is needed in town where I live to bring the number together.

So you are a liberal supporter that owns nothing?

That's about what I got from your rambling nonsense.

[Dynamic]

Originally Posted by Ken07AOVette

So you are a liberal supporter that owns nothing?

That's about what I got from your rambling nonsense.

I type all that and that is your response. I expect a bit more and please tell me your opinion why I am wrong. And to answer your question I am not a liberal supporter and I do "own" my house.

What part of my rambling non sense so do you disagree with the most? Do you believe the oil industry has been prudent with their money? Do you think this government actually believes the conservative values they seem to tell everyone they believe in? Do you think voters actually researched the political party they ticked off in the special box on voting day?

And just to clarify I do support the oil industry. I hope it is around for a while yet and I am grateful that we have had such a good run. But what I do not like is the coddling of the industry lately. These oil companies had no trouble agreeing to their tax agreement when times are good. The government should not be stepping in to save them when times are bad. If it is so bad and you can't make money then close your operation, reclaim the land, and move on. When I bought my house years ago I knew going in I was going to pay a set amount of taxes and it would go up 2-5% per year. I have a budget made each year and I account for that. Oil companies should do their due diligence and realize that oil booms come and go and you have to have a plan and money saved when times are not so good. When times are bad I do not expect the government to save me. If it becomes to much I sell or find a way to make more income. I don't expect a handout. Especially on the backs of the other ratepayers.

Like I said earlier I believe there are situations that can be looked at such as me paying such a low tax rate in the MD as compared to town. Are farmers paying their fair share? I'm not saying there is not a compromise but the proposal that the UPC has put forward is not workable or fair.

[hal53]

Originally Posted by Dynamic

I personally find it ironic that the people who voted the most "pro UPC" are gonna be affected the most, and not in a good way. I'm conflicted as to whether I feel sorry for those who are going to be affected or just realize that these life long conservative voters need a hard learned lesson.

You should NOT decide who you are voting by what the politicians are saying during the election campaign but by rather what the party stands for. How do you go up to that ballot box not knowing that this government would try to offload costs to cities and municipalities? How could you NOT draw the conclusion that he was going to try to make it easy as possible for oil & gas? Kenny made it pretty clear during his campaign he was going to bat for the oil & gas industry did he not. Too many people decided not to figure out what the eventual outcome would be for voting UPC. Now everyone is shocked to find out that their taxes are might have to have to be hiked or face huge service reductions. A little bit of research (sharing Facebook memes or putting dumb stickers on your truck does NOT count as research) goes a long ways but it takes effort so people just go to the ballot box essentially blind and vote for the politician they like the best. For good or bad, you get the government you deserve.

I also find it ironic that this government that claims to be conservative and embrace conservative values are trying to prop up and industry that has burned through an extraordinary amount of money and are now in dire straights. I consider myself fiscally conservative and I am because I realize there are good times and there are bad times. I have a rainy day fund to help me when things go bad. Perhaps these oil companies that are now in trouble should of better managed their money. It was absolutley crazy there for a couple years with the money being thrown around. I have friends who told me the stories and to me t sounded like the entire industry was on a coke bender living the high life. Maybe just perhaps of saved a little for when things are not so good. Just a thought? Conservative is not just a word you through around when it is convenient. To me it looks like oil companies like the word conservative but in reality they are far from it.

Now for the other side of the argument....I lived in a rural municipality for many years and now live in a town. I will honestly admit my taxes were laughably low when I lived in the municipality. When I moved to town my taxes increased 400%. Perhaps a increase is needed in rural municipalities and maybe a look at spending is needed in town where I live to bring the number together.

Typical socialist response.. "You can pay more so I don't have to pay so much"

[riden]

I’m considering buying a recreational property in Brazeau county, one reason is I like the low property taxes.

Can anyone enlighten me about potential changes there before I buy? Anyone received clarification?

[Dynamic]

Originally Posted by hal53

Typical socialist response.. "You can pay more so I don't have to pay so much"

I do not even know how to respond that because your so far off. The good ol' typical conservative response to anyone who does not agree with them is to call them a socialist.

I'll give you my background. I work a blue collar job as a tradesmen and own a house and pay my fair share of taxes. I have worked continuously for 15 years and at no point did I go on EI outside of the CERB for one month. I own no toys and have no debts. I drive a beater car that was paid for outright with money I saved.

I had a divorce years ago and had to start from scratch. I had to save up for a down payment for a house again and I did. I had no handouts and just went to work every day. I saved some more money and now have a rainy day fund. I work hard and I expect no handouts. So before you start throwing the word socialist around because I have a different view on some issues, realize that I probably share many of your values and will continue to do so.

[Sundancefisher]

Originally Posted by Dynamic

I personally find it ironic that the people who voted the most "pro UPC" are gonna be affected the most, and not in a good way. I'm conflicted as to whether I feel sorry for those who are going to be affected or just realize that these life long conservative voters need a hard learned lesson.

You should NOT decide who you are voting by what the politicians are saying during the election campaign but by rather what the party stands for. How do you go up to that ballot box not knowing that this government would try to offload costs to cities and municipalities? How could you NOT draw the conclusion that he was going to try to make it easy as possible for oil & gas? Kenny made it pretty clear during his campaign he was going to bat for the oil & gas industry did he not. Too many people decided not to figure out what the eventual outcome would be for voting UPC. Now everyone is shocked to find out that their taxes are might have to have to be hiked or face huge service reductions. A little bit of research (sharing Facebook memes or putting dumb stickers on your truck does NOT count as research) goes a long ways but it takes effort so people just go to the ballot box essentially blind and vote for the politician they like the best. For good or bad, you get the government you deserve.

I also find it ironic that this government that claims to be conservative and embrace conservative values are trying to prop up and industry that has burned through an extraordinary amount of money and are now in dire straights. I consider myself fiscally conservative and I am because I realize there are good times and there are bad times. I have a rainy day fund to help me when things go bad. Perhaps these oil companies that are now in trouble should of better managed their money. It was absolutley crazy there for a couple years with the money being thrown around. I have friends who told me the stories and to me t sounded like the entire industry was on a coke bender living the high life. Maybe just perhaps of saved a little for when things are not so good. Just a thought? Conservative is not just a word you through around when it is convenient. To me it looks like oil companies like the word conservative but in reality they are far from it.

Now for the other side of the argument....I lived in a rural municipality for many years and now live in a town. I will honestly admit my taxes were laughably low when I lived in the municipality. When I moved to town my taxes increased 400%. Perhaps a increase is needed in rural municipalities and maybe a look at spending is needed in town where I live to bring the number together.

You don’t have a good honest view of the facts.

Companies of the last 10 years are not the same as 30 years ago. Tons more accountability to the bottom line.

In a hot industry as the profits rise the staffing, contractor, service company and materials cost increase. When the market turns those areas get hit in reverse.

Interesting you say you are fiscally conservative however don’t understand the UPC are working to reign in costs. Part of that is pushing accountability down to the hardest spenders to have them look closely as what they need to prioritize spending on.

This reduction of wasteful spending only comes when prodded and the socialist municipalities often push back hard and shout blame blame blame to deflect from their incompetence.

Case in point...Calgary’s excessive spending for years and extremely low staff productivity in many sectors.

Anyone who voted UPC knew fully well some cost reductions were coming. We need to stay within our means and not chock ourselves to death on continued NDP debt and taxes.

[Dean2]

Originally Posted by Sundancefisher

You don’t have a good honest view of the facts.

Companies of the last 10 years are not the same as 30 years ago. Tons more accountability to the bottom line.

In a hot industry as the profits rise the staffing, contractor, service company and materials cost increase. When the market turns those areas get hit in reverse.

Interesting you say you are fiscally conservative however don’t understand the UPC are working to reign in costs. Part of that is pushing accountability down to the hardest spenders to have them look closely as what they need to prioritize spending on.

This reduction of wasteful spending only comes when prodded and the socialist municipalities often push back hard and shout blame blame blame to deflect from their incompetence.

Case in point...Calgary’s excessive spending for years and extremely low staff productivity in many sectors.

Anyone who voted UPC knew fully well some cost reductions were coming. We need to stay within our means and not chock ourselves to death on continued NDP debt and taxes.

Well said. I have many times posted that the Provincial Gov needs to find a way to reign in the out of control spending at the Municipal level. This isn't quite what I expected but it wiil help.


Here is a previous post on Counties spending way too much money.

This is what I sent to the Mayor and Council about 4 weeks ago.

Quote:



In 2013 municipal taxes were $31 million, total Revenue for the County was $54.6 million. The annual Surplus was $12.7 million with an accumulated surplus of $208.1 million.

In 2019 net municipal taxes were budgeted to be $80.4 million, so 2.6 times what they were only 6 years ago. Taxes actually came in at $50.3 million due to delays at the refinery and a few other deferred revenues but even at that actual received tax revenue is 1.6 times greater than it was in 2013. Total Revenue for the County was budgeted at $102 million, more than double 2013, and came in at $86.2 million for the same reason. The budget had anticipated an annual surplus of $40 million and the actual came in at $21.3, similar to the previous year’s surplus of $24.7 million producing an accumulated surplus of $302.7 million. So even with the delay in receiving tax money from commercial developments the County is generating a significant annual surplus that will only get larger as those tax revenues come on stream.

At what point does the Council come to the conclusion that not only should residential property taxes not increase, but that it is actually time for a decrease in the Residential rates? The County will have almost 100% of the residential tax take as a surplus. These surpluses seem to be spent on an ever growing list of Capital expenditures and there appears to be no end of a willingness to find new capital projects to spend money on. The population of the County in 2013 was 21,000, according to the Alberta Government site, and according to the 2019 Detailed Census results the population has actually decreased to 20,506 so population growth plays no part in explaining this rapid ramp up in spending nor does inflation.

While I am fully in agreement with running a balanced budget, and that a certain level of capital expenditure is obviously required I am curious as to the grand plans underway that would necessitate running a $55 million dollar a year surplus, which is more than the total operating and capital budget only 6 years ago, to predominantly fund capital projects. Can you enlighten me and the other residents as to the rational for these massive increases in spending that are fully consuming very large increases in revenues. Thanks.
\
Here is the double speak baffle gab response I got back from the Mayor. Unless residents start fighting back and tossing out idiots that vote for endless spending your are right, we won't be able to afford to live in our own houses.

Quote:The Mayors Bafflegab response. Pretty much all a convenient bend of the truth.


I did vote in favour of the 0%, I was not in favour of the .05% reduction. The 1.18% increase was to offset the new Police Funding model we now have to pay $586,497. into. We still do need to make the payment, we are just not directly funding it through a tax increase. Keep in mind, this funding model will have us paying increasingly over the next 3 years until we are up to $1,760,751 by 2023. If you follow Council closely, you will know that I have always advocated to be sure we get spending under control and find efficiencies where we can, increasing taxes to find more money is not where you start. Sturgeon Tax rates are very competitive in comparison to our neighbours and in comparison to other rural municipalities. Our past 0% increases have been a point that has created issues with our neighbouring municipalities that feel we should be increasing our taxes every year, and paying more to them for our residents using their facilities and driving on their roads. I will also mention that the provincial government is currently considering changes to the non-residential tax rates, by accelerating the depreciation scale of Machinery & Equipment Assessment. This could effectively remove 30% of our non-residential revenue and would have impacts to our tax rates and our service levels.

There are several costs associated with municipalities that have grown since 2013. Provincial downloading of several expenses, like policing is just one of them. Membership fees and administrative capacity required at the Edmonton Metro Regional Board, Provincially mandated Intermunicipal Collaborative Frameworks and Intermunicipal Development Plans, Annexation negotiations, declining Municipal Sustainability Initiative funding, aging infrastructure that required increased maintenance or capital cost rebuilds. I trust you have looked through the budget and the lists of projects. There are several neighbourhoods within the county that do wish to see capital investments to improve their quality of life, increase safety and perhaps encourage investment and increase job opportunities. Council needs to consider the opinions of all.

As you know, surpluses in budgets are to go to reserves to pay for items that we know will eventually need replacing or large expenditures that may not be suitable to borrow funds for. We have recently completed a Drainage Master Plan that will require millions of dollars over the coming years to manage runoff and water flow through and around the county. This is necessary to protect homes, infrastructure like roads and also productive agriculture land. Previous budgets left no room for this important and costly work. Bridges and culverts have been inventoried, condition rated and monitored, and necessary replacements planned. These bridges used to be the property of the province, but it was infrastructure that was 'given' to the municipalities by the province (I believe approx. 10 years ago) so we are now responsible to maintain and replace it as needed.

We had also undertaken an organizational review and restructuring in 2018/19 to be sure we are running processes and procedures in the most effective way possible. It is important to modernize an organization and be sure it is the right size with the right tools, before any consideration of new buildings are undertaken. We have reduced our staffing by almost 7%, before Covid-19 and brought the pay-scale into the 65% of comparitor's and not the 75% it had been for years previous. We are developing a Procurement and Contract Management position which has not been previously done and is extremely important to monitor expenditures and assure value in contracts. and If there is any silver lining to Covid, it has been the expedited switch to having people work remotely. As we assess our business resumption, we will be giving serious consideration to just how many people will actually return to an office and who is capable and productive at home.

The massive increases to capital spending that you are concerned about are, to a degree, a catch up of spending that was not undertaken for the past 5+ years as the organization was anticipating significant tax revenues that have not yet arrived. We have a Significant Revenue Growth Policy http://www.sturgeoncounty.ca/Portals...wth-Policy.pdf that speaks to the rational of how to spend the revenue when it arrives. If you have specific concerns, or further questions, please contact me or Cllr. Derouin and we would be happy to go over them with you.

Alanna Hnatiw
Mayor
Sturgeon County