Title
Off-Site Levy Bylaw No. 2015-07
(Repeals Bylaw No. 01-2010 and Bylaw No. 2013-03)
Proposed Motions
1. That the Annual Off-Site Levy Report (2015) be received as information; and
2. That Bylaw No. 2015-07 receive first reading; and
3. That a Public Hearing be scheduled for April 28, 2015 at 11:00 a.m. in Council Chambers to hear public comment on proposed Bylaw No. 2015-07.
Body
Administration Recommendations
Administration supports the first reading of proposed Bylaw No. 2015-07 and recommends that a Public Hearing be held.
Purpose
Bylaw No. 2015-07 will provide a mechanism to collect 2015 off-site levies. For the first time, a single bylaw utilizing the Corvus off-site levy model will be utilized for all four municipal infrastructure types (water, sanitary, storm, roads) within the Big Lake, Acheson and Fifth Meridian benefitting areas. If proposed Bylaw No. 2015-07 is approved by Council, the following Bylaw changes will also be approved:
1. Repeal Bylaw No. 2013-03
2. Repeal Bylaw No. 01-2010
Summary
Parkland County currently collects off-site levies to offset the costs of infrastructure within the Big Lake, Acheson, and Fifth Meridian areas through existing Bylaw No. 01-2010 (Roads) and Bylaw No. 2013-03 (Underground Utilities). Proposed Bylaw No. 2015-07 will consolidate all off-site levies under a single Bylaw that utilizes the Corvus off-site levy model. Bylaw No. 2015-07 will implement the off-site rates to be charged by the County effective May 1, 2015.
Bylaw No. 2013-03 was enacted on April 9, 2013 and already utilizes the Corvus model. Administration has completed the annual report for the off-site levies as required under Section 11 of Bylaw No. 2013-03, including those for underground utilities. Proposed Bylaw No. 2015-07 is consistent with the existing method of determining the off-site levy rate for underground utilities and is simply implementing the annual review.
Bylaw No. 01-2010 was enacted on May 25, 2010 and does NOT utilize the Corvus model. As such, Bylaw No. 01-2010 has set levy costs that are no longer representative of the market value and may create a shortfall in our transportation infrastructure development. Further, Administration must calculate and administer a different model than underground utilities. Therefore, Administration recommends the Bylaw be replaced with a new Bylaw consistent with underground utilities that will provide flexibility without compromising the purpose of the current Bylaw.
Therefore, upon adoption of proposed Bylaw No. 2015-07 all off-site levies will be administered through the Corvus model and the off-site levy rates will be recalculated on or before April 30th of each calendar year in order to ensure that sufficient funds are being collected to cover the costs of the infrastructure.
Strategic Plan 2014-2018:
Bylaw No. 2015-07 is consistent with Commitment 1 & 2 under the Economy Section of the Strategic Plan: "Actively explore partnerships and potential revenue streams that will enhance our future growth and reduce our reliance on property taxes" and "Establish an environment that attracts businesses and allows them to succeed".
Bylaw No. 2015-07 is consistent with Commitment 1 under the Infrastructure Section of the Strategic Plan: "Ensure infrastructure keeps pace with growth".
Legislative/Legal:
Municipalities are authorized to impose and collect off-site levies through the Municipal Government Act (MGA), Division 6, Sections 648 - 649. Parkland County implements its authority by establishing a bylaw which provides detailed development levy objectives. The bylaw is then then applied to specific development through a Development Agreement. Pursuant to Section 648(6) of the MGA, the Bylaw must be advertised at least once a week for two consecutive weeks prior to second and third readings.
Financial/Economic Implications:
The financial implications to Parkland County through the off-site levy review are complex and are included in the Annual Off-Site Levy report (2015). Off-site levies aid in maintaining a fair and competitive tax structure, while continuing to invest in community infrastructure such as transportation, utilities and facilities. Off-site levies are reviewed and calculated on an annual basis as part of the County's budget process. The off-site levy calculations have been coordinated and reconciled with the County's long range capital plans and the current year's program. Levy rates have been adjusted for 2015 based on the following:
1. The County's interest rates have been adjusted for 2015 to include an interest borrowing rate of 3.86% and interest earning rate of 1.43%.
2. The addition/revision of capital projects, including updating actuals/cost estimates, as required.
Social: Properly funded infrastructure provides for the social well-being of all residents and businesses.
Environmental: Properly funded infrastructure provides for enhanced environmental sustainability.
Interdepartmental: The annual review and this recommendation has been jointly prepared by Financial Servcies, Engineering Services and Planning & Development Services.