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Community Aggregate Payment Levy Rate Amendment

Date:

November 2015

Expiry Date:

December 2018

Current Status:

Archived

Sponsors:

Lacombe County

District:

2 – Central

Year:

2015

Convention:

Fall

Category:

Industry and Resource Development

Status:

Archived

Vote Results:

Carried

Preamble:

WHEREAS Section 409.1 of the Municipal Government Act authorizes the council of a municipality to pass a community aggregate payment levy bylaw to impose a levy in respect of sand and gravel businesses in the municipality; and

WHEREAS the Community Aggregate Payment Levy Regulation 263/2005 and 187/2010 made pursuant to section 409.3 of the Municipal Government Act specifies that the maximum levy rate to be imposed in respect of sand and gravel operators is $0.25 per tonne of sand and gravel; and

WHEREAS municipalities use the community aggregate payment levy to fund the maintenance and construction of infrastructure, community projects and enforcement positions to work with the sand and gravel industry and residents to manage the gravel extraction process; and

WHEREAS the costs of providing infrastructure, community projects and enforcement staff continues to increase each year; and

WHEREAS the maximum levy rate to be imposed has not been increased since the Community Aggregate Payment Levy Regulation came into effect on January 1, 2006; and

WHEREAS the Community Aggregate Payment Levy Regulation is set to expire on December 31, 2015;

Operative Clause:

THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties request the Government of Alberta to renew the Community Aggregate Payment Levy Regulation and to update the maximum levy rate to reflect inflation and the increased cost of infrastructure upgrading and maintenance.

Member Background:

Municipalities have used the community aggregate payment levy to construct and maintain infrastructure to accommodate the sand and gravel industry, support community projects and fund community peace officer positions to work with the sand and gravel industry. The community aggregate payment levy has allowed municipalities to address many of the concerns relative to the negative aspects of the sand and gravel industry and improve the image of the industry. Unfortunately the community aggregate payment levy has not kept up with inflation and the increased cost of maintaining infrastructure.

Similar resolutions to increase the maximum community aggregate payment levy were considered by the AAMDC membership in 2008 and 2012 and received support from the majority of the delegates at the convention. Alberta Municipal Affairs reviewed the Community Aggregate Payment Levy Regulation in 2010 and notwithstanding the position taken by the AAMDC the maximum levy of $0.25 per tonne was retained.

RMA Background:

10-12F: Community Aggregate Payment Levy Rate

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.

24-08F: Community Aggregate Payment Levy Rate Amendment

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

DEVELOPMENTS: To aid municipalities with rising costs for infrastructure maintenance, the fall 2012 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 has submitted feedback Municipal Affairs as part of a limited consultation.

Government Response:

Municipal Affairs: Alberta Municipal Affairs is undertaking a review of the Community Aggregate Payment Levy Regulation as part of the review of all regulations under the Municipal Government Act. Initial input has been sought from major stakeholders, including the Alberta Association of Municipal Districts and Counties. Based on this input, a more in-depth discussion with stakeholders will be pursued in 2016 and will include issues such as the levy rate and regular review of the regulation. The current regulation has been extended to allow additional time to carry out this engagement process

Development:

The Government of Alberta underwent a review of the Community Aggregate Payment Levy (CAPL) regulation alongside other regulations as part of the Municipal Government Act Review process in 2016. The CAPL maximum rate was increased to $0.40 per tonne of sand and gravel. Though this increased rate may not fully reflect the cost of infrastructure upgrading and maintenance, and inflation, this resolution is assigned a status of Accepted in Principle to recognize the rate increase.

Provincial Ministries:

None reported.

Provincial Boards and Organizations:

None reported.
Federal Ministries and Bodies:
None reported.

Internal Notes:

None reported.