+ RMA Rural Municipalities
of Alberta

Resolution 3-04S

AAMDC Membership Fee Formula

January 1, 2004
Expiry Date:
March 31, 2007
Active Status:
Vote Results:

WHEREAS almost all meetings associated with the AAMDC are held in Edmonton;AND WHEREAS municipalities incur increased travel costs in direct proportion to the distance from Edmonton; AND WHEREAS this creates an extra cost for the same outlying municipalities to be a member of the AAMDC;

Operative Clause:

THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties amend its membership fee formula to compensate members who are more than 200 kilometres from Edmonton (as outlined in the attached membership fee formula).

Member Background:

In the past this issue has been mentioned, but it was crystallized at the calling of the BSE meeting in Edmonton. For those in the far south and the far north, it was either a two-day event, or a plane had to be chartered at considerable expense. For those in the Edmonton area, it was an easy drive in and out at little expense. This of course happens twice annually for AAMDC conventions, and it was felt it was time to suggest some recognition of that fact.Details of the formula include:TF Travel FactorMTC Max Travel CreditLD Longest Distance from Edmonton to an M.D./county office. Currently it is the M.D. of MackenzieTC Travel CreditDCE Distance from County office to Edmonton if over 200 kmTVPM Travel Premium on Variable Portion of Membership on equalized assessment under $2 billionTTC Total Travel Credit to all eligible membersEAU Equalized Assessment Under $2 billionEAO Equalized Assessment Over $2 billionBR Base Rate on membership fee, set by board of directorsVRU Rate per million dollars on equalized assessment Under $2 billionVRO Rate per million dollars on equalized assessment Over $2 billionMFT Membership Fee adjusted for TravelFormulas:TF = MTC/LDTC = TF x DCETTC = Sum (All TCs)TVPM = TTC/Total All EAUMFT = BR + ((VRU+TVPM) x EAU) + (VRO x EAU) – TCCurrent Formula: Membership Fee = BR + ((VRU) x EAU) + (VRO x EAO) 2003 BR = $2,0002003 VRU = $5.862003 VRO = $1.20 The formula looks complicated but is not. It is based on two fundamental principles:1. Those municipalities with offices more than 200 km from Edmonton should get some credit for higher travel costs to be members of the association.2. The total amount of credit allotted for travel be recovered by a surcharge on the equalized assessment (EA) portion of the membership fee under $2 billion, thus recovering the costs from those municipalities with the greatest ability to pay. The maximum for the travel credit for the farthest distance, the base rate, and rates on EA under and over $2 billion could be set by the board. The idea is not to compensate those who travel long distances the total increased costs, but just to give some recognition to the inequity. In the attached example the Maximum Travel Credit was set at $2,000. Also the following constraints should be noted: Distances used may be approximate and would need to be amended as required. Associate memberships were ignored as they would not be affected. Equalized assessment figures came from AAMD&C Member Statistics 2003

RMA Background:

The AAMDC has no resolutions currently in effect with respect to this issue.The AAMDC membership fee formula for consideration by delegates at the 2004 Spring Convention is proposed as follows:$2,000 + $5.86 per million of equalized assessment up to $2 billion+ $1.20 per million of equalized assessment in excess of $2 billion

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