Crowsnest Pass-Ranchlands, A different perspective on Annexation

There is no question grabbing a significant piece of Ranchlands would be a financial dream come true for the residents of the Crowsnest Pass. On the other side of the equation what would a resident or a business currently or potentially looking at locating in Ranchlands have to look forward to? 

In the Nanton News the other day the CAO for Ranchlands provided a comparison of Ranchlands Mill rates versus the surrounding Municipalities.  Keep in mind the numbers may seem low but he is just providing the Municipal portion of the mill rate, not included are the ASFF or the seniors lodge portion.

So now a resident of Ranchlands hearing about Crowsnest Pass annexing them gets to look at the following.  Let’s assume they have a property assessed at a value of  $500,000 today they are paying roughly $1650 in tax, become part of the Crowsnest Pass that number becomes $3050. Now a proponent of annexation will argue that other areas of the province that were annexed, negotiated a moratorium on tax increases or a phased in increase over any where from 5-20 year time frames that’s true. Sooner or later the new residents will get hit with the tax increase.

The area where this has a much larger impact is on the commercial side, let’s assume for a second you are going to locate a fair size business in Ranchlands, for the hell of it let’s pick a coal mine, lets say with an assessed value of $500 million. At today’s Ranchlands rate they would pay $2,528,000 a year. That same property taxed at the Cowsnest Pass rate would pay $5,385,250 a year.

A difference of $2,857,250 a year put that over a life span of 20 years it comes out to a whooping $57,145,000 those are substantial dollars. The point of all this, which tax rate do you think the owner of the coal mine will be pushing for? Plus keep in mind the people that will make the ultimate decision, the  province will get it’s share of royalties which ever municipality the mine sits in.

Willow Creek   Foothillls      CNP         Kananaskis      Ranchland    MD  Pincher Creek

Residential and Farmland                                             

3.7860              2.7979       6.1024        5.0560            3.3000           4.2738

Commercial/Linear/Machinery & Equipment               

7.4340             6.8704       10.7705      5.0560              5.3000          7.2003

Linear Taxation In equalities between Municipalities.

In Alberta you have in excess of 400 small municipalities, many are doing well with thriving economies and others are similar to the Crowsnest Pass in that they are struggling financially.

The provincial government allows Municipalities many ways to raise revenues such has property taxation, linear taxation, franchise fees, user fees, fine revenues etc. Most people understand property taxes, unfortunately in the Crowsnest Pass we have a very limited commercial tax base, so fast approaching 90% of property tax is collected from residents. Franchise Fees I am sure after the last six months most people know what they are. User fees are such things as the utility bill we pay every second month, ice time at the arena, rental of a municipal hall, etc. Fine Revenue we now have our own Community Peace Officers who some predict will bring us in large sums of money.

Lastly, there is Linear Taxation, from my conversations with people very few understand what Linear Taxation is. Real simple explanation it is the Tax dollars that CPR, power companies, gas or oil companies, windmills etc pay to be allowed to run their lines through your municipality.  

The Crowsnest Pass in 2011 brought in $587,000 in revenue from Linear Taxation which sounds like a lot, but it’s not when we compare to our neighbours  To the north we have MD of Ranchlands that brings in $4,000,000 a year in Linear taxation its area is large and a lot of oil and gas lines run through its municipality. To the east we have MD of Pincher Creek which brings in $3,000,000 a year just from windmills. Also keep in mind that these municipalities are very rural have little infrastructure and very few facilities to maintain. In simple terms costs are low and revenues high quite the opposite to the Crowsnest Pass.

You might think this situation is unique to the Pass its not, look at Cold Lake right in the middle of oil and gas country, one would assume that they are rolling in money. Over the last ten years that community’s population has more than doubled, putting tremendous pressure on its local government to build roads, put in water and sewer lines, build new facilities etc. You would imagine that they have all kinds of tax base, not to the degree they need most of that oil and gas development is taking place outside of their municipal boundaries, but all the people that are coming there are living in Cold Lake. They attempted to share revenues with the surrounding municipalities and had some minor success, not enough, they even went as far as to dissolve their municipality to force the province to assist them. George Cuff and his company went in did a report for the province the last I heard was that the province refused their request to be dissolved, they made some minor agreements with surrounding municipalities and the province told them to basically live within their means.

   

Back to the Crowsnest Pass, I sat on council for six years it became apparent after a few budget cycles that money is not something the Pass has an abundance of. We looked for other sources of revenue the administration pointed out the opportunity that sat to the North of us with Ranchlands. We met with Ranchlands administration and council a number of times and spoke to various ministers about moving some of those linear tax dollars towards the Crowsnest Pass. You can see how much success we had, maybe this council will have better luck with the powers to be in Edmonton and convincing our neighbours to the north to share with us. I hope so.   

Council is right, previous council was right and I am sure councils prior to the one I sat on looked at this issue. There is an inequality between municipalities on this linear taxation issue and there are municipalities that have much higher costs than others. But  I suspect if a municipality like the Crowsnest Pass was in the financial position of a MD of Ranchlands we would be telling them to get their financial house in order prior to coming to us cap in hand.   

Talk about perfect timing getting the answers in the Crowsnest Pass.

Yesterday I posted the following article http://crowsnestpasshome.blogspot.ca/2012/11/a-community-divided-real-fix-is-eleven.html

Almost ironically, I receive an email this morning from the municipality, it’s the monthly newsletter. I will take a few quotes from the Mayors Corner and contribute my own thought’s.

Quote #1.  “I think it’s safe to say we are all very interested in local politics and hopefully will continue to be. I have to admit I am a bit disappointed in that we have held two budget meetings – with no one in attendance.”

Response #1 Looks like the people are speaking by their absence.

Quote #2  “I understand the current Councils’ “petition” has been delivered to Edmonton. The Minister of Municipal Affairs will ultimately make a decision based on wisdom, expertise, legislation and as a Council we will, as I have indicated on several occasions, abide by his decision.”

Response #2 Did not realize it was the current councils “petition” I had assumed that it was gathered by the ratepayers. Maybe this was an attempt at a little bit of sarcasm.

Quote #3 “On a positive note administration will be rolling out the new Fire Plan probably before Christmas. The plan promises to provide improved service and long term savings. The Director of Protective and Community Services, Mr. Albert Headrick has indicated the plan will provide a cost savings of over one half million dollars over the next two years and ongoing savings thereafter.

Response #3 Are we talking here about the operational budget, capital budget combination of both? The budget for Fire and Rescue (Operational) in 2010 was less than $400,000 if they are going to reduce that by $500,000 in the next two years, it will be very interesting to see what they will do. If it is reducing the capital budget by not going with a $1.3 million Quint and instead buying something for $800,000 that’s just playing with numbers.

Quote #4 “  We are in the process of determining an open house date for our hotel development team to gather input from yourselves regarding the development. I suspect it will be in February. Contrary to rumor no “flag” hotel has yet been determined”

Response #4 Maybe not an “Holiday Inn” looks like we are buying time. I predict that come next September we are going to have all of these “Hot” projects ready to go subject to the developers, manufacturers, corporations maintaining a level of comfort with the direction of the “next” municipal council.

Quote #5 “ The manufacturing company will be flying its executives out from Quebec to view the site again. The hot water situation and environmental regulation is still a problem”  

Response #5 These problems will not get fixed in the short term, probably require another three years see response #4 above.

Quote #6 Your Chief Administrative Officer and I have met with four representatives of a heavy industry once more to discuss further possibilities. They indicated they would make a decision towards the end of the first quarter of 2013 or the beginning of the second quarter. I am amazed at the research and care these companies take to ensure that all environmental and social requirements can be met before they commit. This is a welcome and complete reversal from my experience as a young man. We have come a long way.

Response #6 Love the way all this timing is coming together, see response #4 and #5 above. Does anybody really believe that none of these guys are running in the next election.

Quote #7 “On November 13th Councillors Gail, Gallant, the Chief Administrative Officer and I met with Minister Griffiths to discuss Highway 3 and the MD of Ranchlands. As you are aware the Provincial government has recently indicated it is not adverse to borrowing funds for much needed infrastructure projects – I would like to see our highway at the top of the list. We were able to provide the Minister with a review of the need for a new highway relative to the bright future of the Pass. Our second issue was the need to seriously address the problem of the MD of Ranchlands vis à vis the Crowsnest Pass. There are many complexities involved however we confirmed the obvious inequities and the positive impact on our taxes if an amalgamation could be realized. The Minister indicated he would visit us hopefully early in the New Year for a tour of the Pass and to continue these discussions.”

Response #7 It seems a long time ago since the provincial election remember all that talk from the PC’s about balance budgets, surpluses in fairly short order. Remember the opposition parties stating that the PC’s were basing their numbers on overly optimistic oil and gas prices. Now we find out that they were only talking about operational budgets, HWY 3 may be a priority for this community but it is not for Edmonton.

The MD of Ranchlands good luck I went to meetings with ministers to, met with the Council and CAO of Ranchlands, seen many letters go back and forth. I have not met many neighbors that are willing to share there good fortunes with the poor guy down the street. Which way do you think the MD of Pincher Creek and every other wealthy municipality are lobbying on this issue.

Quote #8    “In conclusion, Ralph Waldo Emerson once said “You will always find those who think they know what is your duty better than you.” Please make no mistake. Your elected Council knows its duty well and is committed to fulfilling that duty to the citizens of Crowsnest Pass.”

Response #8 No matter what we the taxpayers think or care about the path they have chosen. 

Town hall meeting my views

In response to several comments on my previous post (10:12 and 12:45).
With that post I attempted to let my readers know what happened at the meeting.
No I did not provide my opinion on the likely hood of these announcements being successful.

So here goes; first of all I will state I hope every one of them comes true because I believe every one of them would be good for the Pass. Some to greater degrees than others but all good for the growth of this community.

1/Economic Development Committee and Economic Development Officer.
First of all the committee it will be very interesting to see the make up of this committee, it needs to be a mixture of different types of expertise. With a combination of both old and new blood, if the committee does not have that mixture it will start with a lack of credibility. There is already a perception of "outsiders" ramming change down the throats of the locals. 
The Economic Development Officer this community only needs one if he/she is going to actually bring something here, yes we are talking results which can only be ensured by having somebody on a short term contract that is looking to impress quickly. If they use this community as a stepping stone who cares as long as we get the benefit while they are here. Do not for a minute think that we are going to get somebody cheap it will cost us a minimum of $100-150K a year to get anybody decent.

2/River Run
Wouldn't it be great to see something happen on that site. But seriously I think we would be lucky to get 10-12 units at the east end in the next two years. (Proximity to water/sewer) Do I think  anybody is going to spend $10-15 million doing all the infrastructure on that site in these economic times? good luck.

3/Gaining tax base from MD of Ranchlands.
This is a political issue the only way this will happen is if  municipal affairs decides it should. There are not many great examples in the province of  poor municipalities gobbling up wealthy municipalities. Keep in mind this is not a problem unique to the Crowsnest Pass, Cold lake as fought this fight for years, and at least they had the argument that they were providing services and facilities to the surrounding areas. How many of those 80 residents of the MD of Ranchland do you think count on the Crowsnest Pass for services or facilities. Maybe the present Mayor can carry more influence in Edmonton than the previous Mayor time will tell. This really will come down to a political decision, does anybody think that the Town of Pincher Creek with its struggles will not be casting it eyes to the MD of Pincher Creek, think of all the money that Shell plant and Windmills bring in.

4/Crowsnest Centre Demolition and Development
Wow the building gone by first snow fall? I was told today that it's a 4-5 month job considering the asbestos that needs to be taken out of there, realistically it will not be done in winter months I think we will see it gone next year. Today I requested a breakdown of the bidders and their quotes on that job I would be very surprised if the majority of the bids came in, below or at $600,000 and I will be surprised if there was more than 3 or 4 bidders that place is going to be like a pandora's box when they open it up.
The hotel before we get too excited keep in mind that council only passed a motion last week (June 18) to "begin" negotiations with the developer. That will not happen over night if the developer is going to demolish the building that cost will be brought into the selling price of the property, the Mayor stated last week that the hotel sounds like a "Best Western" well keep in mind that there is one going into Sparwood right now and the  District of Sparwood is offering tax breaks to new businesses. That will be a topic of discussion during these negotiations, don't kid yourself does anybody think this community is bargaining from a position of strength with this developer. Off site levies they were only put on hold for the rest of this year, they will also be a topic of discussion. Time frames, the developer is going to want to have the flexibility to take as long as possible to fill that property the municipality is going to want it filled up as quickly as possible.
The other question that nobody as asked, will this hotel have an impact on the rebuilding of the BCMI in Blairmore? I hope not, I would hate to see us lose a 50 room hotel to gain a 75 room hotel.
Yes I believe there will be a hotel on that property one day, it is a prime location with a lot of traffic going by every day of the year. I do not think it will happen as fast as people are hoping.

Just to add to my early comments I hope every one of these announcements comes true very quickly. My dream for 2013 is to see an Economic Development Officer bringing many small businesses to town, to be able to drive by River Run and see it developed has fast as Iron Stone. To receive  my tax notice in April with a decrease due to gaining a decent chunk of tax base from the MD of Ranchlands. And finally to drive by the former Centre Site to look at the new hotel going up. That would be a great year for the Crowsnest Pass.  

Town Hall Meeting……..We Might, We Might N….

Thursday night June 23, 2012 at the Elks Hall, Free Beef on a Bun big crowd.

Throngs of people wait in anticipation of the big announcements!!!! The Mayor garnishes a few boos has the meeting is set to begin, with a quick motion of waving his arms and a bit of a chuckle he say’s “bring it on”.

He gives a little speech laying out the agenda for the night. CAO Myron Thompson begins refreshing everybody’s memory with an update on the four pillars.

Then like a carefully choreographed dance recital each of the councilors gets up to address rumors, issues etc.

Councilor Gallant talks about municipal hiring states they have only increased the workforce by four people.

Councilor Saindon explains why we have spent so much on consultants. Apparently, we have had vacant administration positions for a total of 31 months combined since this council took over, why? Administrators getting married, moving back to California, Fernie who knows.

Then we hear from the public on such issues as the following, excuse me if I miss anything:

Security for Rum Runner Days Weekend

Resident paying for sewer that did not have it

Money spent on consultants

Accessibility for the handicapped

Bullying in the schools

Mayor’s letter condemning the public that disagrees with him

Collecting of back taxes

Requests for information not be acknowledged

Spring/Fall Cleanups

Blairmore/Coleman shops consolidation

Rebranding of the community

Non-Residential taxation

Bellcrest Seniors Hall

Communications on Bylaws etc

In the first half of the meeting there was three things that stood out to me, first of all watching the Mayor with his pompous attitude, this is the way it is if you don’t like it too bad attitude, too many wise cracks at the wrong times. Second in some cases people got really angry (leading to RCMP escort them out of the building) I wonder how much of that was related to the first point that stood out to me. Thirdly Councilor Londsbury’s comments I have a completely different appreciation for the man, he came across has very sincere, obviously with very much passion for this community. I may disagree with him on every issue but it became very clear to me that his heart is very much in the right place.

Then Part II, after a short break and about 25% of the crowd leaving (It did get to be too long of a meeting)

The Mayor came back with the good news section, well I really hope this council can achieve these things but it makes me nervous when I hear our leader say repeatedly “take what I’m saying with a grain of salt”

These were the announcements, the Mayor is going to strike up a committee of around eight (8) people to look at the issue of Economic Development this committee will make recommendations to Council; there will also be an economic development officer in place by Christmas.

Next, the Mayor has stated that some of the River Run properties have been purchased from mortgage companies and he states that the River is “beginning to thaw” that there might be something happening there. Then he says  “take what I’m saying with a grain of salt”

Next, he talks about the MD of Ranchland a municipality just to the north of us that has only eighty residents but lots of money and lots of tax base. The municipality is going to approach them and the province about moving some of that tax base into the Crowsnest Pass, which would help with our financial woes. Again, he states, “take what I’m saying with a grain of salt”

Then we reached the climax of the evening the Crowsnest Centre Site, with much glee the municipality has entered into discussions with a prospective developer that is looking at bringing a seventy five-room hotel (Best Western) to that site. However, it does not end there a smaller convention type area, a truck stop, a fast food restaurant, a big name sit down type restaurant, a dog run park area, and a secure area for RV’s etc. Then came the all familiar   “take what I’m saying with a grain of salt”.

Then came a question about the demolition of the building the Mayor stated that this company is so keen they are prepared to negotiate the cost of taking care of that into the purchase price. Then he when on to say by the time the first snow flies I expect to see that building gone, with the building process beginning next spring. Then he stated  “take what I’m saying with a grain of salt”.

With the interest of the crowd now at it’s peak he asked Myron to present some rendering of what the area could look like, then a picture of a beautiful three floor hotel was put up on the screen, with the comment made that we hope to see something like this but we may not. Again the Mayor made the statement several times “take what I’m saying with a grain of salt”

Lastly came the final goodie of the Night the Mayor is attempting to build dialogue with Teck.

My comments on Part II;

Economic Development Officer- obviously we need help in this area I hope several things, that they have a clear plan to pay for this without placing more burden on the taxpayers. That they hire somebody on a contractual basis that either performs or is gone (not a life time position) and lastly they have a method of showing clear results.

River Run-I hope something happens here, the issues only begin with back taxes, infrastructure, piles of dirt, big holes in the ground and many Investors who properly don’t have a whole lot to show for their investments.

MD of Ranchland-Every thing they said about Ranchland is true lots of money, lots of tax base, and very few people. I would assume that administration has provided council with all of the information from 2007-2010 when the previous council attempted to go down this same path, and councilors from previous councils told me that they also approached this issue. I hope that they look at what the City of Cold Lake when through in their “many” years of attempting to tap into the revenue of wealthy surrounding municipalities.

The Crowsnest Centre, the enlightened people that have spent the better part of shouting out for the last twenty years that if you are going to attract any kind of commercial development to this community that is the spot. Must be very thrilled and I am, imagine how much common sense it makes to take 6+ acres of flat property, that is fully serviced and right next to a major highway that has 12,000 vehicles a day traveling past and using it has the centre of commercial activity in the Crowsnest Pass. What a brain wave.

I am assuming that there was no tender for less than $600,000 to get rid of the building, but never the less I cannot wait for those first snowflakes to fall.     

In conclusion, I hope all of the “Announcements” happen, but it is not going to be easy or fast. 


Note: The Mayor and the CAO stated a number of times during the meeting that if anybody wants information to contact administration and it will get answered. I will be doing this and everybody else that has concerns should take advantage of this offer.