Coffee With Council a Huge Success

Photo from Arcadia Cafe, via Facebook

Last Saturday morning, our Village Council instituted "Coffee with the Councillors"!  We were able to get together in the Arcadia Cafe and discuss issues affecting the village over a cup of coffee. 

I thought it was a huge success!  There were some barbs and some kudos thrown about but overall it was an excellent informal gathering!

Something I said might have been taken as a criticism of council but I did not intend it in that way.  I mention that the Village of Beiseker is owed almost a quarter of a million dollars in unpaid back property taxes!  That's a lot of money to a small village like ours! 

I certainly did not mean that information as a criticism of our council.  It's not their fault!

Think of how your life might be affected if your employer told you one day that he was going to withhold up to 20% of your wages and pay you sometime in the future; maybe three years in the future!  How would that affect your planning and your budgeting?  That's exactly what this village faces every year when dozens of folks here don't pay their taxes on time!

Think about it!

Q&A: Taxes and Services (and Community Schools)

I've received some questions over the last few days - most of them involved property taxes and what we get for our money in the Village.  Here's the questions and my answers.

Q:  How come the mill rate went down, but my taxes went up? 
A:  Beiseker's mill rate did actually drop by a small amount, however our overall assessment rose.  That means that some of the properties in the village actually went up in value from last year.

If your property was one of those, your taxes increased.  Most increases were small (less than $10/month), but a few of us took a bigger hit.  Tax payers can contest their assessment but they cannot contest their taxes.  Contact the Village Office (403-947-3774) for more information.

Q:  What do we get for our tax dollars, anyway?  
A: A small municipality must provide the same basic services as a large one.  Beiseker must provide its citizens with most of what Calgary provides. Your tax dollars pay for streets, roads, sidewalks, street lighting, road maintenance, water and sewer services, a fire hall, garbage pick-up and disposal, parks and recreation, public buildings, and parks along with a host of other things to keep this village running smoothly.

Q: We don't even have a fire department, do we?
A: On the contrary, our volunteer fire department is, in my opinion, one of the best in Canada!  That opinion is shared by others who know more about fire departments than I do! Our fire hall is open and manned twenty four hours a day, seven days a week for more than 340 days a year! I am very proud of our Beiseker Fire Department!

Q: You said Beiseker Community School was the only community school in Rocky View. What about Springbank Community High School?
A: To my knowledge, Beiseker and Springbank both were declared community schools.  That means they could go ahead with the process of becoming a community school.  But Beiseker was the only one to complete that process, so it became the only Rocky View School to be designated a Community School by the province.

Q: Is the village going to do anything about repairing or repaving the rest of the streets and sidewalks  in Beacon Heights?
A:  After we replaced the pavement on Chinook Crescent, the other streets in the subdivision showed their ages too.  We have a fair bit of grant money, but we have many improvement projects ready to go, too.

Council will have to crunch the numbers and see how much they can do with the funds we have and our priority list.  Those who are very concerned about the street of sidewalk in front of their home should.  If you're one of them, please, write a letter to council detailing your concerns.  It can be addressed to council via the Village of Beiseker (Box 349) or delivered directly to the Village Office.

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.

Taxation: Market Value Assessment

Here's my first of a series of blogs on municipal taxation.  I am writing these to address a concern by a citizen at last Monday's Town Hall Meeting.

The biggest source of income for all municipalities in Alberta is property taxation.  Every year, each municipality goes through a complicated procedure to figure out how much each property holder in that municipality will pay in property taxes.  Here are the steps;

Assessment:  First, the municipality must establish how much each property is worth so it may be taxed accordingly.  A few years ago, the Alberta provincial government insisted that the municipalities go to a system called "Market Value Assessment" aka MVA.  That means that each property would be assessed based on what the owner might get, if he were to sell it on the market today.

That works in larger municipalities, where many properties are bought and sold each year - but for small communities like ours, assessors must rely on a formula based on the selling price of similar properties in other similarly sized communities.  I think this system is seriously flawed --because finding a municipality exactly like ours is next to impossible.

Another problem with the MVA is the hardship it creates with seniors on a fixed income.  In Calgary, middle-class homes purchased in the 1950s and 1960s are now considered "inner city," and are assessed at millions of dollars!  Their assessments are so high, that those seniors who bought those homes 50 years ago can't afford the $500/month in property taxes.  They are priced out of their own homes and forced to move!

Larger municipalities can afford to have a "tax department," which can assess properties and handle any appeals.  Smaller communities like Beiseker have to hire an assessment company to do our assessments.

Every property owner will receive a assessment notice, usually in the spring of each year.  Property owners can appeal their assessment -- although there is a fee to do that. Property owners cannot appeal their taxes, only their assessments.

After all the assessments are completed, the assessors send the municipality a Total Assessment figure.  That represents what they think the total worth of the municipality.

Stay tuned tomorrow to find out how the municipality uses that figure to decide how much you pay in property taxes.

Our Premier Missed His Chance!

Shortly after the Provincial Budget was tabled in the Legislature yesterday, my son Rhys phoned me and said he thought that Jim Prentice had blown his big chance to put Alberta on a safer financial path.  After going over the details of the budget, I agree with him!

The Alberta Progressive Conservatives had a chance to really set things right in this province, but they wussed out!  They zapped the smokers and the drinkers, which is a usual target when the governments need more cash; the so-called "sin tax."  But then they hit drivers, too!  I think the fuel tax increase will do more harm than good.  Ours is a huge province, with very little public transportation except in the larger cities. 

In my opinion, the fuel tax is just another punishment to Albertans for trying to move around their province for business or pleasure!

The health care surcharge won't even be applied to health care!  What kind of sense is that?  The well-to-do in this province were given a very small increase in their taxes and, from what I can read, the huge rich corporations got off basically scot free!

The ailing Heritage Trust Fund was propped up - instead of being drawn down to almost zero for this definitely "rainy day!"  Alberta's future education and health programs were ignored.  I guess the government expects all those folks moving into booming communities, like Airdrie, to drag their own hospitals, schools, seniors' care centres, and infrastructure in with them.  That, I gotta see!

Diversification was mentioned a few times. We'll have to see what comes of that.

The provincial opposition parties are in total chaos, so the Alberta PCs can't be worried about them, especially with their huge majority.   According to law, the Premier cannot call an election for another year yet. 

So why did he wuss out?  I don't know.

Many Taxes, One Pocket

It's no secret that one of the government's main source of revenue is direct taxation.  Each level of government has been given certain methods of gathering money from Canadians. 

The federal and provincial governments collect income taxes.  Our national government and most provinces (except Alberta) gather sales taxes.  Provinces tax things like liquor and tobacco (so-called "sin taxes"), while the provinces and the federal government both tax gasoline and vehicles. 

Municipalities tax properties - but the provinces have a hand out there, collecting its education portion of property taxes.  There is also the 'trickle down' tax dollars; the federal and provincial governments send a trickle of dollars down to the level (or levels) below them.

It's all very complicated, but what many of our elected MPs, MLAs and municipal councilors might forget sometimes is that all of these various levels of taxes are paid for out of one pocket.

The same person who pays his property taxes also pays provincial and federal income taxes.  The money used to pay property tax, liquor taxes, sales taxes, fuel taxes and  other taxes has already been taxed by the federal government before the taxpayer is even allowed to put his wages in his pocket!

All taxes are paid for out of one pocket; the taxpayers pocket! 

All elected officials; municipal, provincial, and federal, must be constantly reminded of this very fact.

Belt Tightening!

The reporter from the Rocky View Weekly phoned me, yesterday.  She had attended our council meeting last Monday.  She noted that in my report to council, I proposed some cutbacks in the budgets of three village departments; The Volunteer Fire Department, Public Works Department, and the Recycling Department.  She wondered why.

I explained that Beiseker faced some tough economic roads in 2014 and we need to get strong again!  Snow removal was a biggy last year.  The winter of 2013-2014 dumped huge amounts of snow on the village.  Our snow removal bill skyrocketed!  We also had a large amount in overdue municipal taxes not paid. 

These factors, plus a couple of large expenses put us in a "hand to mouth" financial situation.  That is not a situation that council is comfortable with!

Our Chief Administrative Officer has made enormous strides in collecting unpaid property taxes.  We've found that folks find in easier to pay their property taxes in monthly installments, instead of one big bill in the summertime.  Many have arranged to do this and our unpaid tax file has shrunk down to a very small amount!  But I still believe we must trim our expenses, too.

Premier Prentice has been telling us that Alberta's dependence on oil revenue puts the province's finances in jeopardy when oil prices drop to less than half of what they were a few months ago.  He has discussed different ways the province will manage their finances under the current circumstances. I think it is the responsibility of municipalities to also sharpen their pencils and trim their budgets accordingly.  I don't believe a huge property tax hike is the way to go!

Staff from each of the three departments I've named will determine if a cutback is possible without compromising the services the village provides.  They will report back to council. Our budgeting process will go on for the next few weeks.  By the way;  In future council meetings, I will be asking other village departments and service areas to consider cutbacks, too.   Stay tuned!

What do you think?  Get in touch with a village councilor and tell them what you think should be done.

Road Work is Expensive!

During and after the Town Hall meeting last Monday evening, the condition of Beiseker's streets has been mentioned several times.

We have a few critical streets here in the Village which need some serious work.  Here's the ones I can think of, in my personal order of priority -

• The mud bog at the corner of Second Avenue and Seventh Street.
• The Beacon Heights Road from Beaver Place to the Public Works Yard.
• First Avenue from the Public Works Yard to the CN tracks.
• Fouth Avenue from Friendship Park to Seventh Street.
• Seventh Street from Fourth Avenue to First Avenue.
• Sixth Street from Third Avenue to Fourth Avenue.
• There are also some lane-ways which need work.

But, a huge amount of road work could mean increased property taxes.  I for one am opposed to such a property tax increase.

There are some provincial grants available.  The old grant for improving streets has a new name, but it's still offered.  There are also the Municipal Sustainability Grants available, although significantly reduced by the province.  We on council would like to continue our Main Street upgrade project with a big chunk of that money, but maybe we should be looking at that decision again.

There is also the option of naming a portion of a project a local improvement and assigning a frontage tax on those properties directly affected by street improvements.

What do you think? Let me know here; it's free.  I would like your input.

Alberta's Upcoming Provincial Budget

Premier Redford's Address to Albertans, last week, and finance minister Doug Horner's comments about the upcoming budget have got me worried!

Both ministers tell us that there will be no tax increases, even though provincial revenues have seriously declined. They're telling Albertans that the budget will be balanced by spending cuts and "wiser spending," to accommodate the $6 billion resource revenue shortfall.

Small municipalities like ours rely on provincial grants and programs for improvements and upkeep in the village. Streets improvements, tourist facilities, and a myriad of other programs are paid for by provincial grants, at least in part.

I worry that some of these grants will be severely reduced or cut completely, as Premier Redford and Minister Horner sharpen their pencils!

If that happens, we have two choices;

• Reduce or eliminate the project or program.
• Increase municipal taxes to replace the lost funding.

Neither of these options appeal to me!

In my experience working in municipal government, I have realized that Albertans do not want severe property tax increases, even though our property taxes here in this province are lower than most others.

Bottom line is that I cannot support a significant property tax increase! If the province does severely reduce or cut grants to municipalities, we will have to do some real belt-tightening here!  Will the province download their financial shortcomings to the small municipalities?

I hope that I'm worrying for nothing!

2013 Outlook for the Village

Thank you all so much for those birthday wishes, yesterday.  I enjoyed reading them.

So far 2013 has rolled in quite quietly.  I'm looking forward to this year and getting some action and/or closure on some of the issues still clinging on from 2012. 

• The cost of water:  In order for all the communities along the Aqua 7 Regional Water system to thrive, I believe we must lower the cost of water!  I'm working on that.  We've managed to hold the water rates to their present levels.  I hope we can better that this year.
• Grasslands subdivision:  I and the rest of Beiseker Village Council are determined to see growth over there in our stalled residential subdivision during 2013!  And by "growth", I don't mean weeds!  Stay tuned.  UPDATE: Grasslands is a "GO"
• The Bassano Station:  Although it is officially none of our business, I think I speak for the rest of Beiseker Council when I say something has to happen there this year!  This project has been dragging on for years now.  Time to get it done!
• Taxes:  It is going to be a challenge to keep property taxes in line and offering the same level of services or better, given the increased costs and the amount of back taxes still owing.  I firmly believe we can do it with a little village belt tightening and a sharp pencil!

In my opinion, those are the four "biggies" for Beiseker this year.  There are a myriad of smaller problems and issues we'll have to address and I think all on council are anxious to tackle them!