WHEREAS management bodies of seniors foundations/lodges may requisition affected municipalities the amount of the management bodies’ annual deficits and necessary reserve funds; AND WHEREAS Section 7(2) of the Alberta Housing Act gives the municipalities requisitioned the autonomy to collaboratively determine an equitable formula on which the total requisition is to be shared; AND WHEREAS if affected municipalities are unable to determine an equitable formula for any given year, the total requisition for each year will be shared on the basis of each municipality’s proportion of the total equalized assessment; AND WHEREAS due to wealth and population differences, urban and rural municipalities have difficulty agreeing on changing the basis on which the total requisition is to be shared; AND WHEREAS rural municipalities are paying a disproportionate share of funding to seniors foundations/lodges based upon equalized assessment only, while occupancy of seniors foundations /lodges is generally related directly to population versus equalized assessment
THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties urge the Government of Alberta to amend Section 7(2) of the Alberta Housing Act to change the basis of determination for municipal requisitions to a percentage-based system with 50% determined by population and 50% determined by equalized assessment.
The County of Minburn has been concerned over the increasing requisition amount it pays to the senior foundation/lodge and inequalities in the formula. We feel that this amendment to the Alberta Housing Act would be the best compromise and equitable for all municipalities involved for the following reasons: – Urban and rural municipalities have difficulty agreeing on one requisition formula due to population and wealth differences – Rural municipalities are likely to have the largest equalized assessment of all affected municipalities, and quite often have a smaller population than some of the urban municipalities involved The details of the existing requisition formula are as follows: Municipality Equalized Assessment % (Calculated on Equalized) Total Requisition Paid by Municipalities Village of Innisfree 6,390,211 0.93 1,646 Village of Minburn 1,244,865 0.18 319 Village of Mannville 16,244,174 2.37 4,195 Town of Vegreville 253,072,181 36.89 65,295 County of Minburn 409,134,485 59.63 105,545 TOTAL 686,085,916 100.00 177,000 The details of the proposed requisition formula (50% population and 50% equalized assessment) are as follows: Municipality Population % (Calculated on Population) 50% of Total Requisition Based on Population Equalized Assessment % (Calculated on Equalized) 50% of Total Requisition Based on Equalized Total Requisition Paid by Municipalities Village of Innisfree 219 2.22 1,965 6,390,211 0.93 823 2,788 Village of Minburn 88 0.89 788 1,244,865 0.18 159 947 Village of Mannville 722 7.34 6,496 16,244,174 2.37 2,097 8,593 Town of Vegreville 5,376 54.63 48,347 253,072,181 36.89 32,648 80,995 County of Minburn 3,436 34.92 30,904 409,134,485 59.63 52,773 83,677 TOTAL 9,841 100.00 88,500 686,085,916 100.00 88,500 177,000
No changes to the requisition system are currently planned. However, the AAMDC continues to encourage a targeted letter writing campaign from both urban and rural municipalities on this issue.