County makes $5 million revenue-sharing contribution to Edson

The revenue sharing payment to the Town of Edson of just over $5 million is a voluntary payment made by Yellowhead County and is to: help share the costs for services that are used by ratepayers across municipal boundaries; and ensure long-term stability, mutual benefit, and quality of life for all stakeholders.”

The mayors of Yellowhead County and the Town of Edson signed a new Revenue Sharing Agreement on August 5, 2016, in Edson, Alberta and the Town of Edson was recently presented with a cheque for $5,033,681 for this year.

The revenue sharing payment to the Town of Edson of just over $5 million is a voluntary payment made by Yellowhead County and is to: help share the costs for services that are used by ratepayers across municipal boundaries; and ensure longterm stability, mutual benefit, and quality of life for all stakeholders. This is in addition to the $2 million that Yellowhead County contributes towards services provided by the Town of Edson such as the operation of the Edson Airport, the Galloway Museum, the Edson Landfill and Recycling Services, Family and Community Support Services (FCSS), and other programs that are available to County residents within Edson.

Yellowhead County realizes

that the Town of Edson contributes to the quality of life in the area by providing a service hub for some of the social, recreational and cultural support that is required in the region and is vital to the local industrial sector for its continued operations and growth.

The Town of Hinton received $1,946,904 million in revenue sharing from Yellowhead County and another $2 million for cost-sharing for fire services, waste management services, FCSS, and community recreation based services for 2016.

Yellowhead County continues to work with the towns of Edson and Hinton, as well as Parkland County, to help share in the costs for services that impact ratepayers across municipal boundaries, ensure long-term stability, mutual benefit, and quality of life for all stakeholders.

The Revenue Sharing Agreement is a formula based agreement that takes into account the amount of industrial activity within Yellowhead’s County’s jurisdiction surrounding each town. Both towns have received incrementally larger annual revenue-sharing payment amounts over the past nine years.

COST AND REVENUE-SHARING TRANSFERS TO MUNICIPAL PARTNERS FROM YELLOWHEAD COUNTY (2016):

EDSON

Revenue Sharing Agreement $5,033,681

Animal Pound $51,670

Airport $233,631

Landfill & Recycling $362,660

FCSS $118,062

Library $11,100

Recreation $1,106,223

Galloway Museum $98,100

$7,015,247

HINTON

Revenue Sharing Agreement $1,946,904

Fire $901,451

Solid Waste $58,500 FCSS $40,769

Recreation $1,052,289 (Capital $886,000)

$3,999,913

Frequently Asked Revenue and Cost Sharing Questions:

Does the County fund other initiatives in the Town?

The County cost-shares on the operating and capital costs for many programs and services that County residents and industry utilize. Cost-sharing agreements are in place for Airport Operations, Recreation and Culture, Recycling and Landfill Operations, and Family & Community Support Services.

How much money does the County contribute toward revenue and cost sharing annually?

In 2016, Yellowhead County will pay approximately $11 million in both Revenue and Cost Share funding to these municipalities.

What is the duration of this agreement?

This revised agreement will start with the first annual payment in 2016 and will conclude at the end of 2020 for the agreement with the Town of Edson.

Why is the agreement timeframe so long?

The Councils decided on a long-term time frame to allow financial stability and consistency to the funding model to allow the Towns to plan long term future initiatives knowing that the revenue source is somewhat stable and consistent year to year.

Can this agreement be terminated?

The agreement can be terminated under a few different circumstances: 1) If the Province changes legislation or regulations that negatively affect the revenues of the County, 2) if the Town pursues amalgamation or dissolution without the support of the County, or 3) if either party terminates the agreement by giving notice.

Where does this money come from?

As over 85 per cent of the County’s assessment base comes from nonresidential assessments, it was decided that any revenue sharing formula would only be applied to the non-residential tax base and not the residential and farmland tax base.

How is the amount decided?

The agreement is formulabased and is allocated only to the non-residential assessment base. The dollar value generated by this formula is then divided by the percentage of the non-residential assessment in and around the town’s service areas.