Cities hope rural areas will pay more

Municipal Government Act could change to allow off-site levies charged between jurisdictions

The wish of Alberta’s urban mayors to forge a new funding protocol to pay for development near their outskirts may come partially true, if they can get nearby towns and counties to agree on a case-by-case basis.

An update to the Municipal Government Act review this week shows plans to allow “Intermunicipal off-site levies,” which could be implemented to recover costs of new roads, sewer lines, as well as recreation facilities and firehalls built in one jurisdiction, but used largely by residents of another.

In the Medicine Hat area, that could mean city roads, utility infrastructure — and now municipal buildings like firehalls — could be paid for in part by Cypress County and Redcliff residents.

However, all parties agree more study of the system, its ramifications and relationships is required, and discussion is needed.

In Medicine Hat, Mayor Ted Clugston has been vocal that he expects residents in Cypress County and Redcliff, who use city facilities to shoulder a greater share of the costs paid for by city taxpayers.

Those levies are charged to developers to help pay to extend public infrastructure to newly constructed communities and businesses.

An update of city off-site rates in 2012 took 18 months to complete, and he said any new system would require detailed talks.

“We haven’t really had too much trouble (with technical aspects of city off-sites), and we haven’t had major disputes with private developers,” said Clugston.

“I’ve maybe taken a hardline on it but we’re in the dark until we see (details).”

Despite positioning on all sides, town, county and city elected officials say the threeway relationship is stronger than in the past.

The two smaller centres provided some funding for the Canalta Centre in 2015. Further, the county will pay a $200,000 grant this year to aid the city’s recreation department.

Future construction remains a sticking point, however.

This month, county council in Dunmore agreed to pay up to $250,000 toward $1 million in repairs to South Boundary Road, a city-owned route used to access the county hamlet of Desert Blume.

City councillors have argue the road benefits county residents the most, but city taxpayers are being asked to pay for upgrades.

An $11-million upgrade of South Boundary is scheduled for 2023, but is shelved until more city-side development takes place so off-sites can fund the construction.

It would be possible under new amendments for an intermunicipal off-site on new construction in Desert Blume to also contribute.

Redcliff Mayor Ernie Reimer said his council is considering revamping the town’s sewer service, which hooks into Medicine Hat’s system.

A new off-site authority may give smaller communities an avenue to recover costs from new development, rather than from the existing tax base, he said.

“There are discussions going on all the time,” said Reimer, adding that no decision has been made on the issue.

Non-city utility users pay a “gate” premium on top of rates to recover a portion of water and sewer infrastructure costs.

At MGA consultations last summer, county officials said they felt some sort of co-pay system was in the works, and might be agreeable. However, they worried about the possibility of larger municipalities moving ahead with projects ahead of schedule.

Update from Municipal Affairs this week also would add libraries, police and fire stations as well as recreation facilities to the list of projects that could be funded via off-site levies.

Clugston said that facet is less pressing in Medicine Hat because the city has no such major projects proposed in the near term.