Community Aggregate Payment Levy Rate Amendment

Date:

January 2008

Expiry Date:

December 2011

Current Status:

Intent Not Met

Sponsors:

Parkland County

District:

 

Year:

2008

Convention:

Fall

Category:

Municipal Governance and Finances

Status:

Intent Not Met

Vote Results:

Carried

Preamble:

WHEREAS pursuant to the provisions contained in the Municipal Government Act (Alberta), section 409.1, the Council of a municipality is authorized to pass a community aggregate payment levy Bylaw to impose a levy in respect of sand and gravel businesses operating in the municipality; and

WHEREAS Community Aggregate Payment Levy Regulation 263/2005 made pursuant to section 409.3 of the Municipal Government Act (Alberta) specifies that a Bylaw passed pursuant to section 409.1 must contain certain provisions including the maximum levy which may be imposed under the Bylaw; and

WHEREAS the maximum levy rate set in section 5(2) of Community Aggregate Payment Levy Regulation 263/2005 is $0.25 per tonne of sand and gravel; and

WHEREAS the Council may use the community aggregate levy revenue toward the payment of municipality infrastructure and other costs, and these municipal costs have increased significantly since the maximum levy rate was first set in January of 2006; and

WHEREAS a community aggregate levy rate that considers the market price for sand and gravel could provide the municipality with a revenue stream that keeps pace with fluctuating municipality infrastructure and other costs;

Operative Clause:

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.

Member Background:

Municipal infrastructure and other costs have continued to increase since 2006, yet the same amount of revenue from the community aggregate payment levy is available to pay for these costs.  Creating a revenue stream that fluctuates with market sand and gravel prices would allow municipalities maintain programs and projects at, at least, the same level annually.

Presently Parkland County relies on the community aggregate payment levy to fund the Gravel Enforcement Peace Officer position that works with industry and residents to manage sand and gravel extraction processes.  As well Parkland County can construct our resource roads to industry standard quicker with the community aggregate payment levy collected from industry.  We believe it is imperative that the sand and gravel levy revenue be protected for use by municipalities in order to continue addressing industry and resident needs in a timely fashion.

RMA Background:

The AAMDC has no current resolutions directly related to this issue.

Government Response:

Municipal Affairs:  Municipal Affairs acknowledges that there are changes occurring in the market and the economy, and is aware of a number of challenges facing municipalities with respect to fluctuating costs of resources and infrastructure.  As noted, the maximum levy rate is established under the Community Aggregate Payment Levy Regulation.
Municipal Affairs agrees that a review could be conducted, and believes the best time to address the maximum levy rate is when the next general review of the Community Aggregate Payment Levy Regulation is undertaken.

Development:

A review of the Community Aggregate Payment Levy took place during 2010. AAMDC members were surveyed and the regulation enacting the lavy was renewed under the current formula. To view the survey results from the AAMDC that were communicated to Municipal Affairs, please visit www.aamdc.com and view the member bulletin from June 9, 2010.  Since no flexibility or increase in the CAP levy rate was established during this review, the resolution status has been changed to unsatisfactory. 

Provincial Ministries:

Municipal Affairs

Provincial Boards and Organizations:

None reported.
Federal Ministries and Bodies:
None reported.

Internal Notes:

The government has indicated that a review of the maximum levy rate should be conducted as the Community Aggregate Payment Levy Regulation expires on December 31, 2010. The AAMDC anticipates receiving correspondence on this topic by the summer of 2010 and will ensure this resolution is considered in the renewal of the regulation.