WHEREAS Section 409.1 of the Municipal Government Act, Chapter M-26, RSA 2000, authorizes the Council of a municipality to pass a community aggregate payment levy Bylaw; and

WHEREAS a community aggregate payment levy Bylaw authorizes the Council to impose a levy in respect of sand and gravel businesses operating in the municipality; and

WHEREAS the concept of “per tonne” payment by sand and gravel operators to the municipality where a pit is located was developed by a joint industry-government committee (Aggregate Resource Development Task Force) to help address industry and municipal concerns over the impact of sand and gravel operations on municipal infrastructure; and

WHEREAS Community Aggregate Payment Levy Regulation 263/2005 specifies a maximum levy of $0.25 per tonne of sand and gravel which may be imposed under the Bylaw; and

WHEREAS municipal costs for infrastructure maintenance have increased significantly since the maximum levy rate was instituted in January of 2006; and

WHEREAS the market price of gravel has also increased dramatically since January of 2006 while the maximum community aggregate payment levy has remained unchanged; and

WHEREAS the increasing spread between maintenance costs due to sand and gravel operations and realizable levies under the community aggregate levy bylaw is eroding the ability of municipalities to keep pace with road maintenance needs;

THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties request the Province of Alberta to review the maximum levy under a community aggregate payment levy bylaw of sand and gravel; and

FURTHER BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties request the Province of Alberta to institute a regular 5-year review and revision of the maximum community aggregate payment levy provision under Alberta Regulation 263/2005.

Municipal infrastructure construction and maintenance costs have increased dramatically since 2006, whereas the maximum community aggregate payment levy rate has remained unchanged, despite a very substantial increase in market prices for sand and gravel.

The Community Aggregate Payment (CAP) Levy, Regulation 263/2005, came into effect Jan 1, 2006, and expires Dec. 31, 2015.  The levy was supported by the Alberta Sand and Gravel Association, an organization that collaborated with the Alberta Association of Municipal Districts and Counties and the Alberta Road Builders and Heavy Construction Association to develop the Community Aggregate Payment Levy concept.

The regulation stipulates a maximum levy of $0.25/tonne for sand and gravel aggregate.  As the regulation does not contain a mechanism to adjust the levy rate maximum to reflect inflation, the ability of municipalities to address sand and gravel related infrastructure concerns is eroding with time.  The County of Thorhild’s cost of gravel inventory at January 1, 2006 was $11.15/tonne, whereas the County’s current cost of gravel is $18/tonne, an increase of 61%.

Resolution 15-10F: THEREFORE BE IT RESOLVED that the AAMDC encourage the Province of Alberta to develop a province wide strategy for the management of aggregate resources through the Provincial Land Use Framework; and FURTHER BE IT RESOLVED that municipalities where the resource is located be given first priority when the Province of Alberta reviews applications for a Surface Material Exploration (SME) or Surface Material Lease (SML) on Crown Land. Resolution 24-08F (expired): THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties request the Province of Alberta to establish an Aggregate Payment Levy Review Committee to evaluate and consider changes to the maximum levy rate provided in section 5(2) of Community Aggregate Payment Levy Regulation 263/2005.

Environment and Sustainable Resource Development:

In accordance with Section 5(1) of the Municipal Government Act, Community Aggregate Payment Levy Regulation 263/2005, municipalities receive payments (no more than $0.25 per tonne) from aggregate operators for sand and gravel that is removed from pits within their municipal boundaries, and not used for public works. 

The Community Aggregate Payment Levy is based on an agreement between the Ministry of Municipal Affairs, Alberta Sand and Gravel Association, and the Alberta Road Builders and Heavy Construction Association. 

Municipal Affairs:

The Community Aggregate Payment Levy was most recently reviewed in 2010; the review included a public consultation component.  The Alberta Association of Municipal Districts and Counties (AAMDC) conducted a member survey on the issue and the input the association provided as a result was very much appreciated.  Other input was provided by industry, including the Alberta Sand and Gravel Association, and by members of the general public.  While the AAMDC indicated that some municipalities supported increasing the levy rate, or having a flexible rate option, the overall stakeholder response indicated satisfaction with the regulation.

The regulation was re-enacted in the fall of 2010 as the Community Aggregate Payment Levy Amendment Regulation (Alberta Regulation 187/2010).  The amendment regulation extended the expiry date to December 31, 2015.  

The government does not intend to review the levy rate at the present time, but it could be addressed during the next stakeholder consultation, which will occur prior to the regulation expiry date.

Transportation: 

Municipal Affairs led the development of, and has responsibility for, the Community Aggregate Payment Levy Rate.  Accordingly, we defer to Municipal Affairs to respond to this resolution on behalf of the Alberta Government.

To aid municipalities with rising costs for infrastructure maintenance, this resolution calls for the regular review of the aggregate payment levy rate under the Alberta Regulation 263/2005. The Government most recently reviewed this in 2010 and the AAMDC was consulted during that process, however, overall stakeholder responses expressed contentment with the regulation as is. As there is no intent to review the levy rate at the present time, the AAMDC deems this resolution as Unsatisfactory. The community aggregate payment levy has been incorporated as an item for input as part of the Taxation and exemptions discussion of the MGA Review. The Community Aggregate Payment Levy Amendment Regulation is set to expire in 2015 and the AAMDC will monitor stakeholder engagement options prior to that expiration date.