Passing the Buck(s)

I didn't get the memo! But members of our new provincial government did.  The memo read:

When faced by Alberta municipalities and school boards asking for financial assistance for projects or  programs, respond in the following manner:  " Under the existing law (or model, or guideline, etc.) municipalities (or school boards) are permitted (or can)  to fund enhanced resources (or facility, or program etc.) through their own budgeting process."

Statements like this, with the appropriate words filled in, are being given out to municipalities asking for new health facilities, better provincial roads, better policing, or any other project which could use some provincial funding.

The problem; municipalities don't have those extra funds!   We've got to start working together again to create these projects which, in the long run, will benefit many if not most Albertans!

To "Pho Chu Yeung"

I am answering "Pho Chu Yeung," who criticized the Village of Beiseker quite severely through the Village's Facebook page.

I was hurt by the accusations made by this (supposed) Beiseker resident, whom I have yet to meet.

• "[Beiseker] has no full time fire department."  I think we've addressed this first concern in my blog post a few days ago.   One anonymous commenter and I have discussed that a little further on that blog post, too - please scroll down to get those comments.
• "[Beiseker] has no ambulance service."  Beiseker is in the same situation here as every other Alberta municipality.  The ambulance services right across Alberta have been taken over by the province!  The service which we joined (The Kneehill Ambulance Service in Three Hills) was disbanded and is now part of the huge mega system run by Alberta Health Services.  We have little or no say on how this new entity operates.  Please refer this concern to the provincial government.
• "We haven't fixed a "hole" in the middle of town for a year."  Over the past few days I have driven every street and laneway in Beiseker, and I have yet to find the hole to which you refer.  Please give us an address of the nearest property so we may check out your concern.
• "The Town should be audited."  Actually, the Village of Beiseker is audited every spring by an independent auditor.  Those findings are published in a report presented to council usually in April.  The provincial Ministry of Municipal Affairs is also informed of the results of that audit.  More information about the annual audit is available to all rate payers at the Village Office.

I hope this clarifies a few of the issues brought forward by Mr. or Ms. "Yeung."   Remember, every council meeting is open to the public.  They are held every second and fourth Mondays of each month in Council Chambers.  The meetings begin at 7:15 p.m.  If you wish to address council at one of those meetings, you must register as a delegation a few business days before the meeting.

Taxation: Tax Collection

Once the mill rate has been set, the municipality can now prepare and send out its tax notices. 

There is a deadline the municipality must follow in sending out these notices, and a deadline by which those taxes must be paid.  When you receive your tax notice, check carefully to make sure you know what the last possible day is to pay your property taxes. 

Traditionally, municipalities charge huge penalty fees for late paid taxes to encourage folks to pay on time.  This is because the municipality must have the money in the bank when the province comes calling to grab their Education Portion! 

Most municipalities in Alberta have two methods of paying property taxes.  Method One is simply a lump sum payment on or before the tax due date. 

Method Two is much easier in my opinion.  It involves paying monthly instalments throughout the year.  We've been on Method Two for a few years now and it's great!  If you think this might work for you, contact the Beiseker Village Office (403-947-3774) and get the details from them.

If property taxes are unpaid, the municipality has a long and involved procedure to collect them.  The property owner can come into the municipal office and work out a payment plan to cover the amount owing, plus the penalties. 

The municipality also has the right to take the property and sell it to recover those unpaid taxes.  There is a time frame which must be followed.  I believe it's three years.  If the property is seized and sold, the municipality will subtract the amount owing on back taxes with penalties - and then place the remainder of the selling price in the bank. The former owner can apply to have this remainder returned to him.

Municipal Taxation (aka Property Tax) is an important part of keeping our municipalities operating smoothly.  I haven't met one person in my life who looks forward to paying their property taxes!   But almost everyone I meet understands why these taxes are so important to a municipality. 

I hope this series has helped you understand how Municipal Taxation works and why it is so important.

Taxation: Municipal Budgeting

Step two in the taxation process is building a budget. 

Each municipality must go over their spending in each and every department during the previous year, then decide how much money that municipality will need to operate for the upcoming year.  The budgeting process begins in the fall of each year.

Most larger municipalities finalize their budgets close to the beginning of the calendar year, but many smaller ones finalize theirs in late spring.  For those who wait until spring, they must create and authorize an "Interim Budget," which is basically just an extension of last year's budget.

Provincial law mandates that municipalities must not operate with a deficit budget - so councils and administration staff  must work hard to "balance the budget" each year before in can be approved.

Smaller communities like ours must run a very tight ship.  We must provide our citizens with everything a larger municipality does, but with far fewer people to "pay the bills!"   Citizens of Beiseker still require streets and sidewalks, street lights, water & sewer services, playgrounds, recreation & cultural facilities, and fire protection, along with a host of other services -- but our tax base is much smaller than a city!

For example, an arena in a city must serve (and be paid for by) at least 20,000 taxpayers.  A small town arena may only serve fewer than 2000 people.  Yet both buildings must be built, maintained, and operated in a similar manner.  Beiseker is very fortunate that our Ag Society has taken on the task of managing our arena, here!

After the budget has been created and approved by the elected council, it's time to set the mill rate.