You will see a small reprieve in your 2016 property tax bill after RMWB council approved using the 2015 property tax rate less two per cent for all taxpayers.
Council approved continuing using the revenue neutral plus new construction model of collecting property taxes, which ensures their revenues increase because of the taxes people pay on any new construction. This year, that increase in revenue will be smaller because of the two per cent break for residents. The reduction in revenue does not cut into any existing or approved budgets but only to ones that have yet to be tabled.
“It’s the best balance I think we’re able to achieve,” said Mayor Melissa Blake, saying the two per cent reduction won’t take away from completing capital projects but still gives residents somewhat of a break.
Even with the two per cent reprieve afforded by the change made by unanimous council approval, you will see a six per cent increase on your residential property tax bill for the Education Tax, which is levied by the province and over which the RMWB has zero control.
There will still be an additional net revenue of $46.5 million which is being transferred to the Emerging Issues Reserve Fund to help cover an anticipated $88 million in assessment complaints.
With the approval of the property tax by-law council also approved increasing the Operating budget to $766.5 million, up from $720 million.
Residents will not be charged a penalty on their property taxes if they are paid late up to December 31 of this year, which gives people until that time to figure out their payment plans. It also gives administration some leeway in determining a plan for the homes lost in the fire that will be reflected in the assessments for 2017 taxes.
Philip Schofield, the RMWB’s director of assessment and taxation, said that is a question his staff still has to answer and it’s one that will require planning, work, and likely individualized solutions in some cases.
“We have a whole new process that will not be easy,” Schofield said, adding that like so many other things in our community there would be no normality to this year’s assessment process.
“It’s going to be a challenge for my staff,” he said, but one they will meet to ensure residents are paying what is fair. Land values, he said, are significant in the region and will play a role, as they always do, in assessing the value of a property even if the home that was on it is no longer standing.
Councillor Tyran Ault asked that administration keep in mind when determining assessments for properties where a home was lost in the fire that council does not want to put a larger onus on the other people in the community to make up the difference and that emphasis should be put on lower spending in the 2017 budget so neither the people who lost their homes nor the people who didn’t are unnecessarily charged.
Council also approved the 2016-2018 Fiscal Management Strategy which will serve as a guide for the development of the 2017 budget, including taking into account increased pressures on this year’s budget because of the wildfire, lost revenues during May and June, and changes to capital projects and borrowing.
The RMWB will lean on its line of credit if need be while waiting for people to pay their property taxes as many people will wait until December 31 because of the relief for late fees.
Tax notices are scheduled to be mailed to property owners the last week of July. The RMWB said contingency plans are in place to ensure that residents can access their property tax bills, should there be a Canada Post mail service disruption.
If there is a disruption of mail service after July 25, tax notices will be available for pick-up at the Assessment & Taxation office on the first floor of Jubilee Centre, 9909 Franklin Ave.
Remaining notices will be mailed once the disruption in service concludes. Electronic property tax listings will be sent to financial institutions at this time, which will be unaffected by a disruption in mail service.
For more detailed information, please see the taxation FAQ at rmwb.ca/taxes.
Noise by-law amendment
Council approved a change to the noise by-law that will allow construction related to demolition, cleanup and removal efforts in the areas under Controlled Access Plans to be done through the night.
Normally, the noise by-law prohibits that kind of activity between 11 p.m. and 7 a.m.
“To facilitate rapid recovery and rebuild, the demolition, clean-up and debris removal phase in these communities, as well as critical infrastructure projects that were delayed 4-8 weeks, need to occur quickly and be completed as soon as possible,” reads a summary of the by-law prepared by RMWB administration. “One way to do that is to allow these activities to proceed on a 24/7 basis.”
The recommendation came from the Wood Buffalo Recovery Committee (WBRC) and is intended to allow work in the hardest-hit areas to continue 24/7 and to allow for the possibility of critical infrastructure work to be done at all hours only if the project is behind schedule and approaching a critical deadline.
Deputy Chief Administrative Officer Kevin Scoble said at this point in time there are no projects being undertaken by the municipality that anticipate needing the extension but he said it may be used if, for example, a sidewalk in a school zone had yet to be replaced and school was starting in just a couple of days. Another example he gave was completing water and sewer replacement before the frost.
“It’s gonna be loud this summer,” said Councillor Sheldon Germain, a member of the WBRC. He asked residents for compassion and understanding so the community can get back on its feet.
Germain argued allowing the work to continue 24/7 would mean residents could get into their homes sooner and that the suffering the noise would be a small sacrifice on behalf of residents to let that happen.
But residents like a woman named Karoline Power from Thickwood, argued the lack of sleep can have adverse effects on people’s mental health, while others argued it could become a health and safety issue for people going to work in higher risk jobs without adequate sleep.
Germain asked whether they would have to legislate common sense or if they could anticipate that contractors would do their best to minimize overnight noise. He said should there be problems with the relaxation of the by-law they would bring a motion to council to limit what kind of work could be done overnight.
“We’re not washing our hands of this,” said Councillor Allan Vinni, also a member of the WBRC. He said that if people are jack hammering or doing heavy, loud work overnight they will put a stop to this. “This isn’t perfect,” he said but argued it would allow work to be done as quickly as possible for the people whose homes need to be rebuilt.
The amendment to the noise by-law passed unanimously.
Landfill tipping fees
An amendment to the utility rates by-law did not pass without a change, however. Originally the WBRC recommended out-of-town companies (any business without a local business license prior to May 1, 2016) pay five times the tipping fees for some services at the landfill.
Vinni had argued in favour of the quintupling of the fees, saying it was about making it easier for local companies to compete for contracts.
“These are the only ways we have to extract payment from out-of-town companies to level the playing field for our local companies,” he said.
But Mayor Blake said that no matter what the end dollar would be passed on to the resident and argued the people who lost their homes would have to pick up the tab for the extra fees.
The landfill does not operate at cost-recovery so council could not waive all tipping fees during the cleanup.
“My kids’ kids will be paying for this landfill,” said Blake, because the cost of operating it is so expensive. Waiving the fees would only add to that.
In the end council voted to charge only twice the usual fee for non-local companies, with Councillors Lance Bussieres, Germain, Keith McGrath and Vinni voting against.
With that amendment passed non-local companies will be charged $170 instead of $85 for all demolition waste or commercial waste from the cleanup of damaged homes, $78 instead of $39 for CFC appliances with gas, $256 instead of $123 for large commercial appliances, and $1,880 instead of $970 for mobile home disposal.
Differential costs for demolition permits
Council struck down a move recommended by the WBRC to charge out-of-town companies 10 times the regular cost of acquiring a demolition permit.
The proposal would have seen non-local contractors charged $2,000 instead of $200 to acquire a demolition permit, which after changes made by the Planning and Development Department includes hauling and cleanup as well as demolition.
Many delegations spoke on the topic including a builder who lives in Edmonton but has a business licensed here in Fort McMurray for the last six years to build homes. He spoke in favour of the additional charge for out of town companies.
Councillor Phil Meagher accused him of only speaking in favour of it because it would give him a competitive edge. The builder said he would have been willing to pay the out-of-town fee because he would still benefit from the work. But because they were only discussing fees for demolition permits the change wouldn’t have applied to his company anyway.
Another presenter from outside the community said the fees were unfair to Alberta contractors coming to help rebuild.
He said it was outsiders who gave people from Fort McMurray gas, places to stay, help when they needed it.
“I’m a resident of Alberta and this is my Fort McMurray, too,” he said, arguing that the companies that come to help have to make a living as well and would simply pass on the additional fee to the homeowner whether it was an extra $200 or $1,800 above what residents would have to pay.
Another resident who has lived in the community seven years agreed the costs would be passed on to the consumer and would eat away at the money people have for rebuilding their homes. He gave examples like a homeowner having to choose between replacing the hardwood floor in the home that was destroyed with cheaper material just because of the permit fee.
He said if the community were to rely only on local businesses people would be waiting two or three years to rebuild which is something people can’t afford to do because either their insurance would run out or their savings.
He also said that whatever differential rate was charged by the municipality would signal to outside companies “we don’t want you here.”
Mayor Blake asked the man if he had a bias, a vested interest or an ulterior motive. He said no, he hadn’t lost a home and works for Syncrude and not a builder or contractor.
She called him ‘Joe Average’ and thanked him for taking the time to come to council to present an opinion based on the interest of the community at large and not on his own self-interest.
Ault said any additional revenues brought in by differential fees wouldn’t be money the RMWB needs.
“This isn’t the way to get local contractors working,” he argued, saying he’d rather see the fees waived than increased for anyone.
Blake, speaking before she called the vote, said the rebuild isn’t about being Fort McMurray strong or Alberta Strong but about getting residents back into their homes as quickly as possible.
The move was ‘thoroughly’ defeated. All demolition permits will come at the usual cost of $200 each.
Birchwood Trails fire hazard reduction
Council approved a $1.5 million dollar plan to reduce the risk of a future fire devastating the community if it reached the Birchwood Trails by getting rid of some of the most dangerous fuel in the woods there.
A total of 95 ha will be removed around the perimeter and inside the centre of the wooded area to create a firebreak between homes and the woods and across the mid-section. Further removal of dead and dying trees and some thinning will also be done throughout the area.
Darby Allen, Fire Chief of Regional Emergency Services, said the move will make people safer in the long-term.
“It’s just a good preventative measure for the future,” he said, explaining that currently the Birchwood Trails are the greatest fire hazard in our entire community.
Council will look at getting some grant money from the province to cover a portion of the costs of the project.
The first phase, dozer guards and cleanup in the Birchwood Trails during the wildfire fight, will be covered entirely by the disaster relief fund from the provincial and federal governments at a cost of about $5 million.
You can view the presentation by clicking on the final agenda item and opening the top attachment on the right hand side.
