Showing posts with label Revenue streams. Show all posts
Showing posts with label Revenue streams. Show all posts

Thursday, May 2, 2013

Electrical system in the Crowsnest Pass

In the last few months there has been lots of talk about the Electrical System in the Crowsnest Pass.

The municipality owns about half of the electrical system in the municipality and it generates a lot of money for the municipality each year. Knowing that some people may see the opportunity for a one time big cash pay out.

 I would strongly suggest that politicians, administrators, and residents recognize that the electrical system is a great asset for the residents of the Crowsnest Pass. That subsidizes our tax rates on an annual basis according to the municipalities own financial statements the electrical  system generated the following amounts of cash over the last three years.

2010 $447,070   2011 $443,247   2012 $482,144 to replace that income you would have to increase taxes  approximately 8%. 

Friday, December 7, 2012

Crowsnest Pass Electrical System


Basically, half the Electrical Distribution System (The lines that deliver power to homes and businesses in our Municipality) are owned by us the taxpayers of the Crowsnest Pass.
You can see which lines are owned by the Municipality on their web site at the following address the rest are owned by Fortis.


There is lots of noise being made around the Pass right now that the municipality is looking at the merits of selling the assets, who knows for sure if there is any truth to that.
However, for what its worth I am going to add my two bits, if they do sell it, they had better get some substantial dollars in return. Unbelievably the electrical system actually contributes net revenue to the municipality every year. From 2011-2014 the municipality in their own figures show a surplus of $1,752,860 from the electrical system that’s an average of $438,215 surplus to offset that lose of revenue the Municipality would have to increase taxes by minimum of 6% a year or find additional revenue sources from other areas.
The number of $10,000,000 is being floated around look at the average surplus number above $438,215 that would mean any potential buyer would not get their money back for at least 25 years. Would anybody pay that kind of money for a businesses that will take 25 years to pay for itself? I doubt it.
What does that mean in layman terms? If somebody is going to buy the system, they are not going to buy it unless they can pay for it in a maximum of 5-10 years, which based on the average projected earning means $2-4 million unless of course a potential buyer comes in with the intention of driving up those revenue numbers. (We all know what that means).
We all need to keep in mind that if our leaders are even contemplating getting rid of this asset we better be getting a lot in return. Because once it is gone the taxpayers we be expected to make up that short fall, and we will all probably be paying a little more in our power bills. 

Tuesday, November 22, 2011

The Shell Game

On November 17, I wrote this post: http://crowsnestpasshome.blogspot.com/2011/11/financing-councils-dreams-another-pot.html

Over the last week, I have heard many statements regarding the issue of back taxes:

Lets address some of these comments going back to my original post, remember I said in my mind there are three catergories of taxpayers in arrears.

One being the 50-60% that is owed by a developer, second the people that miss the deadline for one reason or another and have no incentive to pay until the end of the year and third the people that just can’t or struggle to pay.

So back to the comments being made:

1- "The current 10% penalty is one of the lowest in the province and hardly a deterrent". First of all that’s just plain not true if you don’t pay your taxes you get nailed with 10% in June and a further 10% Jan 1st. (By my math that’s 20%)

2- “People are using there money elsewhere by not paying their taxes”. Certainly would not make a lot of sense to be delinquent on a bill that I am going to be charged 20% interest on versus investing the cash in a term deposit at 1-2%.

3- “Yes, some of those unpaid taxes are from developers such as RiverRun etc” How do we determine that? Maybe the problem as been going on for years?. In the audited municipal financial statements there is a section called notes, under that is a sub section titled “Taxes and Grants in place of Taxes receivable” lets look at the last five years.

• 2006-Total $203,669

• 2007-Total $244,727

• 2008-Total $268,400

• 2009-Total $357.519

• 2010-Total $570,581



Notice the numbers don’t really take a big jump until 2009 I think that really reinforces my argument that 50-60% of the arrears are owed by a developer, spilt 2010’s number in half and your almost back to the 2008 number.

4-“ but we have numerous residents who play the shell game every year.” “Numerous” that’s a fairly harsh word, the municipality sends out at least 4500 tax notices a year in my six years on council there was years we saw alarmingly high numbers of people faced with tax sales for being three years behind. Some years as high as 5 or 6. Yes everybody should pay their bills on time but we are not even talking about 1% of our taxpayers going to a tax sale we are talking about one tenth of one per cent. I think once you pull out the number owed by that one developer above you will find that we are very comparative to other communties in Alberta in addition to the historical number for the Crowsnest Pass.

5-Lets assume for a moment we became that unique municipality where everybody paid there taxes on time where would that traditional $40-50,000 in interest income come from?

Saturday, November 12, 2011

Great Expectations in the Crowsnest Pass! Realized or still just Smoke and Mirrors (Part 2)

Next came the presentation of the Top 40 initiatives to turn our community around. At this point Mayor Decoux allowed each member of council to stand up to present a page or two of his strategic plan.
I have listed each point and included a short comment with each.

1. Improve the way we do business through enhanced
planning, processes, procedures and communications.
All good things that every council does, very costly MDP will be at least $60,000

2. Establish a systematic, orderly and universal process for development.
Every development is unique especially in an area like this, can one size fit all work?

3. Conduct a feasibility study to determine which Municipal buildings need to be replaced or consolidated.
Previous councils started this process the information provided allowed the cost of this to drop to $54,000 instead of $95,000.

4. Review municipal organizational structure.
Will talk about this again later but previously we had four departments with five administrators we will now have three departments with up to seven administrators.

5. Create one Crowsnest Pass Fire and Rescue Department with one Chief and multiple Substations.
Will talk about this again later.

6. For programs and services provided, ensure all revenue opportunities are maximized. This is usually code for "how much more do we have to pay"

7. Establish a Community Economic Development Advisory Committee.
Hopefully this is not going to be a the same people as Community Futures(nothing against those people, let them carry on doing their job)we do not need to duplicate what they are already doing we
need to have new people with new ideas involved.

8. Create a plan to attract new development, business and industry.
Every council talks about this and wants to attract new business can be very costly especially when you start talking about "Offer incentives for relocation of industry" or "the addition of an Economic Development Officer"

9. Explore opportunities for enhanced post-secondary education and Centres of Excellence in the community.
Centre of Excellence in Field Studies in Crowsnest Pass. as been ongoing for at five years.

10. Explore the advantages and disadvantages of being in the power distribution business.
Our electrical distribution system as been subsidizing our power rates for thirty years.

11. Raise the profile of Crowsnest Pass with external audiences including the development of an integrated website.
Previous council looked at this very expensive to create and maintain.

12. Once new website is in place, launch a high intensity integrated communications strategy to support economic development activities.
Work with advertising agency to develop and implement this strategy. This will not come cheap.

13. Move forward on the implementation of the key recommendations of the approved Visitor Friendly Tourism Development Plan.
Consider marketing seed money through Council budget. Just a matter of money.

14. Establish a committee to review and re-develop Rum Runner Days and Thunder in the Valley with a focus on increasing safety and increasing potential for economic benefit to the community and local businesses.
I look forward to the improvements this coming July, this weekend as become extremely expensive for the municipality. But is so important To our business sector.

15. Raise the visibility of the multi-use, multi-season trail system as the premier North American attraction for these activities.
Absolutely future councils need to continue the good work that prior councils began over the last six years keep in mind that 95% of the funding for trails was in place or had been applied for prior to this council taking office.

16. Establish a Tourism Board to advise Council.
Another cost who will lead, administrate, pay for.

17. Seek opportunities to develop events that will attract tourists to Crowsnest Pass.
All councils have done this in the past, its not that long ago a group came to council with a really great idea, that council embraced and encouraged in every way it could "Sinister 7"

18. Review Terms of Reference, accountability and marketing of Pass Powderkeg to ensure economic sustainability.
All recreation facilities are subsidized, the question is always how many and to what degree. If anybody believes this facility places a burden on the taxpayer wait until you get an indoor swimming pool.

19. Achieve agreement with the Government of Alberta on the location and the timing of the realignment of Highway 3 so that this can be included in the Municipal Development Plan.
This as already been addressed the word "agreement" almost gives the impression that both parties were involved, the reality as always been that the province "tells"

20. Complete a Commercial Feasibility Study and Develop a Site Master Plan for the Former Crowsnest Centre.
It was appreciated hearing the Mayor agree with the previous position of council that the municipality could not afford this facility, that it had tremendous problems and the best thing was to make the site available for a hotel.

21. Develop an enhanced relationship with the provincial and federal governments and lobby for increased employment opportunities in Crowsnest Pass.
The Mayor was right most levels of government are centralizing their facilities not expanding.

22. Build partnerships and networks to enhance ongoing economic development opportunities.
All councils do this on an ongoing basis I look forward to the results over the next two years. The only problem when you get more than two parties together everybody sees a sense of entitlement for themselves and expects the largest piece of the pie.

23. Develop a strategy to enhance amenities for families and seniors to attract long-term residents to the community.
I hope we can find enough money to afford the amenities we have without increasing taxes.

24. Lobby the provincial government to retain and maintain the wilderness access roads for tourism and recreation activities.
This is all about the Atlas road and as been ongoing for a number of years. Spray Lakes is almost finished logging in that area. Many groups including the municipality want to maintain that road bottom line will be who steps up to the plate to pay for it.

25. Establish a dialogue with stakeholders regarding the expansion of Crowsnest Pass.
This as been going on for years, its basically hoping that one of our neighbours will give up some of its tax base to increase ours. Check out Cold Lakes efforts over the last fifteen years.

26. Approach the provincial government relative to a Crowsnest Pass Unique Area designation.
Last council convinced the province to give us special status, which allowed us to access both rural and urban grants. Council prior to that used the Crowsnest Regulation to have the province pay for our policing. You can only go cap in hand so many times.

27. Imbed a Heritage Resources Strategy in the Municipal Development Plan.
All councils have looked at and encouraged the development of our historical resources. Last council initiated the municipal heritage board.

28. Establish the historic neighbourhoods of Crowsnest Pass and develop appropriate signage.
Good luck with this issue it will be ongoing long after I'm gone and yes there will be costs.

29. Redefine the Terms of Reference of the Culture and Recreation Board as an advisory board to Council.
Is this really necessary? is there enough to justify two boards in these area does the Municipality have the resources to reach the goals of two separate groups.

30. Establish a Housing Advisory Committee.
The market place will decide what type of housing is required. Unless council is looking at affordable housing which will require the involvement of a developer, plus the municipality making either land or cash available.

31. Seek opportunities to work with regional partners to provide programs and services.
The neighbours have been doing this for years a good example is the regional landfill. Other opportunities should be looked at.

32. Commence rebranding strategy for Crowsnest Pass and redefine the image of the community.
Nothing wrong with promoting the community previous council looked at this, the biggest issue as always will be who foots the bill.

33. Create a Community Enhancement Strategy.
This process began with the previous council who took the brave step of bringing in a community standards bylaw. I hope this council never has to sit through the public meetings we did. The majority of last council recognized the importance of cleaning up our community.

34. Promote Crowsnest Pass as one community.
It will probably take not one more council but one more generation to achieve this.

35. Create a Master Green Space and Parks Plan.
I was under the impression that our previous community services director had started working on this a long time ago. Most people don’t know that we have twenty plus parks and it takes $50-80,000 to equip each one.

36. Explore servicing of existing industrial parks.
Just a matter of money and priorities the last number we had thrown at us was $15 million to Sentinel, and $3 million for Frank. Keep in mind if you are using your grants for this you won't be getting money for Infrastructure around town.

37. Address heavy truck parking issues through appropriate Bylaws.
This will be a very timely and costly issue to enforce. I remember the direct route issue with OHV's.

38. Investigate options for solid waste reduction and recycling.
If this community does curb side recycling at no additional cost to the taxpayers it will be famous.

39. Develop an emergency road connecting Blairmore and Coleman.
We have one and was told by previous administration that it would meet our needs.

40. Explore issues regarding random camping.
Enforcement issue,that will again be very timely and costly.

Note further comments: Most of these ideas are good very few of them new I would say probably 90% have been seen in previous reports. The number one issue here is going to be what every other councils ran into when they looked at these ideas, how do you pay for them. There is very little in this plan that does not include some sort of costs in most cases anywhere from the $1,000's to many millions.
During the election campaign we heard so many times about finding the inefficiencies, cutting the fat maybe that was going to be a source of revenue to do all of the above. Then I see a council go on to hire numerous new people and build layers of bureaucracy. This council or any further council can not lose sight of the fact that 60% of our population is on a fixed income and usually not a large one. Just this week they are advertising for a Building Inspector.
 
Then maybe the Mayor has some different ideas he put up a slide of Municipal costs on there were four areas chosen randomly (Politicians as seasoned as Mayor Decoux seldom picks numbers randomly).
Those areas were Municipal Payroll (almost $5,000,000) Cupe agreement expires December 31st.
Swimming Pool $160,000, Albert Stella Arena $78,000 and the Ski Hill $165,000.
 
Regardless the single largest issue is how are you going to pay for the above?

Friday, January 14, 2011

Water Meters, what my readers think.

Interesting out of 46 votes my poll received:

18 or 39% said No to Water Meters
10 or 21% said Yes as long as I do not have to pay for them
4 or 8% said Yes at any cost
6 or 13% said Yes if I can pay for them over a year
8 or 17% said Yes if I can pay for them over 5 years.

I know this is not a scientific poll, but never the less it certainly reflects that water meters are going to be a very contentious issue, where council is going to have to do a very good job of educating the public as to the real purpose of water meters.

Will it be a method of conservation or will it become an additional source of revenue for the municipality?

Friday, December 3, 2010

Crowsnest Pass, Investors in Bridgecreek, Good News

Here's your chance folks, all of those people that have had so much to say about Bridgecreek, River's Run, Trouts Landing over the last number of years.

Somebody is looking at doing a big story on this, it will not happen unless people step forward, want to be anonymous that's fine. Call the following number 403-563-0425 if you have information, step forward now is not the time to go quiet.

We all know there were people around here that were on the inside of this thing maybe now is the time they will step forward and do the "honest" thing.

On the good news side I was reading Brian Gallants blog available at http://www.briangallant.ca/index.php

Paying special attention to his comments regarding the AUMA convention:

"All I can say so far is “wow”! I am having a great experience at the AUMA convention. Beyond the educational component we are all making great connections and contacts. Here are just a few of the highlights for me."

"We had the opportunity to talk with the Minister of Transportation regarding the ongoing issues with Hwy 3. He did not have much time as every MLA had 100 people trying to get their ear but he did say that he understands our challenges as a community. He wants to meet with us in the near future."

" I made a number of contacts from a variety of industries. One of our education sessions talked about a potential revenue steam and one particular company is perfectly situated to help us make it happen. A win-win arrangement and I am keen to know more. More to come once I have the details. I have a pile of brochures to deliver to our administration. There are people out there who can help us save some money. "

I felt the same way at my first AUMA convention, but after a couple I started feeling like they were a waste of the taxpayers money. Its true when an MLA or Minister comes out on the floor they are swarmed by many different people looking for something. Have a discussion today with a hundred different people and see how many you remember tomorrow.

The highway 3 situation, over the last six years if they had paved one foot of highway for ever meeting we had the road would have been done by now.
Anyway not that long ago we met with Darryl Camplin and another senior manager from Alberta Transport, they committed to putting traffic lights at the turn off into Blairmore by Tim Hortons, and at the Highway 40 turn off in Coleman in 2011.
In 2012 they were going to deal with Intersection in Frank by the Industrial park and the Intersection by the Volker Stevin shop in West Coleman.
Both of these projects were subject to dollars coming forth from the province at the time we last met with them there was no money approved.

On the new contacts with industries and generation of new revenue streams, I and a lot of other residents are looking forward with great anticipation to new industry coming into town, and anything that will lessen the burden on the residential taxpayer.