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Linear taxation unchanged under revised act

Alberta's rural municipalities are glad to hear the current linear taxation system will be maintain under the revised Municipal Government Act (MGA), says Al Kemmere, the president of the Alberta Association of Municipal Districts and Counties (AAMDC

Alberta's rural municipalities are glad to hear the current linear taxation system will be maintain under the revised Municipal Government Act (MGA), says Al Kemmere, the president of the Alberta Association of Municipal Districts and Counties (AAMDC).

A draft of Bill 21, the Modernized Municipal Government Act, was tabled and given first reading in the legislature on May 31.

The act is the overriding legislation that governs municipal governments in Alberta.

Kemmere, who is also a Mountain View County councillor, gave an update on the MGA revision process to the county's policies and priorities committee on June 1.

The AAMDC – which represents 69 rural municipalities including Red Deer and Mountain View counties – has been urging the government to maintain the current linear taxation system.

Linear taxes are collected on such things as pipelines and electricity transmission lines and are currently collected and distributed by the municipalities where the infrastructure is located.

“Under the revised MGA, the current linear tax assessment system will be maintained, but locally negotiated inter-municipal collaboration frameworks with neighbouring communities will strengthen working relationships between municipalities to better share costs of services,” Danielle Larivee, minister of Municipal Affairs said following the introduction of the revised MGA.

Kemmere calls that development positive.

“We are particularly encouraged that the new MGA will not redistribute linear assessment tax dollars while focusing on cost-sharing as the primary collaborative funding tool,” said Kemmere.

Municipalities currently use off-site levies to help fund infrastructure such as water and waste water systems. The revised MGA would permit municipalities to include fire halls, police stations, community recreation facilities, and libraries in those levies.

Under the revised act, municipalities would be required to develop and adopt codes of conduct for council members and will have authority to enforce those codes.

It will also require municipalities to offer orientation and training to newly elected councillors to help them understand their duties and responsibilities.

The AAMDC will be hosting five zone meetings across the province with its member municipalities to talk about its interpretation of the draft document and gather input.

“The true impact of this legislation will be in the details coming forward but I am very happy to see a lot of the items in the legislation,” he said.

“We anticipate great dialogue over the next 18 months until this is complete. There is so much more understanding that needs to come forward.

“The AAMDC looks forward to hearing from our members on the proposed changes so we can continue to work in their best interest with the province to create sustainable rural communities.”

A thorough review of the revised act by the association is now underway, he said.

“Now that we have a new document it is great to be able to now drill into the document and look into the words and looking into the intent and then follow the process through to the regulations that come down in the future,” he said.

Lisa Holmes is the president of the Alberta Urban Municipalities Association, which represents cities, town and villages, including those in Red Deer and Mountain View counties.

“The amendments realize one of our three key goals which is to modernize legislation to reflect the importance of regionalization,” said Holmes.

“The mandatory long-term inter-municipal funding agreements should enable municipalities to work together to ensure that they all contribute to the costs of infrastructure and services that their respective citizens and businesses use.”

The process to update the MGA has been underway for more than three years and has included AAMDC participation.

Kemmere says the process to date has been worthwhile.

“Our association has been proud to be part of the review which has taken place over the last three and a half years,” said Kemmere. “In the process we learned a lot by engaging with our counterparts, whether they are the cities, the towns, the villages or even the provincial government. It's been a partnership we've been working with and I think it's been a good move forward.

“Its helped create a much better understanding of all of our challenges and while we may not always agree with where the legislation should go, we do have a better understanding so that we can build a stronger document in the future.”

Official Opposition Municipal Affairs critic Pat Stier said the party will be consulting with Albertans regarding Bill 21.

“This is the largest act in Alberta and there is much room for the NDP government to slip up if they choose ideology over common sense,” said Stier.

“Wildrose has long been adamant about the necessity for a predictable, stable, long-term funding model for our municipal partners and that is not among these changes.

“We find this deeply concerning, and will be urging the NDP government to follow the Wildrose lead and commit to stable major grant funding during the review process.

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