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WHEREAS the price of oil related products has risen sharply in the last six (6) months; AND WHEREAS municipalities are dependent on oil products for roads, and upon equipment owned or contracted that operate utilizing these products;AND WHEREAS municipalities will probably have to raise property taxes to cover these increased costs.
THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties urge the Provincial Government to provide a petroleum products subsidy to all municipalities during periods of extreme high prices.
Whether it is the products we use for dust control, the oil or fuel for our equipment, or the work we contract, it is affected by the rising increase in oil. Although each product has risen at different rates, with diesel fuel as one of the products most affected, we calculate a possible increase of anywhere from 10% to 25%. As our annual expenditures on oil related products exceed $2,000,000.00, we could face up to a $500,000.00 increase in costs. These increased costs will result in service level reductions or increased property taxes.
The AAMDC has no resolutions currently in effect with respect to this matter.