Title
Bylaw 2018-01 Community Aggregate Payment Levy
Proposed Motions
1. That Bylaw 2018-01 receive first reading.
2. That Bylaw 2018-01 receive second reading.
3. That Bylaw 2018-01 be presented at this meeting for third reading.
4. That Bylaw 2018-01 receive third and final reading.
Body
Administration Recommendations
Administration supports the proposed motions.
Purpose
Late in 2017, the Ministry of Municipal Affairs introduced regulatory changes to the Community Aggregate Payment Levy (CAPL). Effective January 1, 2018, Municipalities are permitted, by Bylaw, to establish the CAPL at a maximum of $0.40 per metric tonne. The proposed Bylaw updates and replaces the existing Bylaw including setting the new rate effective July 1, 2018.
Summary
During the fall meetings of the Alberta Association of Municipal Districts and Counties (AAMDC), the Ministry of Municipal Affairs introduced changes to the Community Aggregate Payment Levy (CAPL). An adjustment was made to increase the maximum amount chargeable by municipalities from $0.25 to $0.40 per metric tonne. Administration recommends that Parkland County's current Bylaw be amended to the new maximum chargeable rate of $0.40.
Over the previous 4 years (2013-2016) Parkland County received the following amounts; $876,315.31 (2013), $903,617.53 (2014), $1,028,516.09 (2015), $667,110.43 (2016). This equates to an average annual revenue of $868,889.84 at $0.25/ tonne. Applying the new rate, Administration anticipates an increase in average annual revenue to approximately $1,390,223.74; an increase of $521,333.90 per year. Of note, this value fluctuates based on the actual sand and gravel activity within Parkland County and is not guaranteed.
In discussions with the Alberta Sand and Gravel Association (ASGA), this change represents higher operating costs for private pit operators and associated gravel haulers. While they knew in advance of the announcement that a change was on the horizon, the timeline to implement changes is difficult for them to adjust to as it is relatively short. Approximately 2 months notification was provided between November and January to enact the change, if Parkland County were to make the rate effective January 1, 2018. A request to defer the implementation date was received from ASGA on December 21, 2017. Administration recommends this request be supported and therefore, recommends the effective date of this Bylaw update be set at July 1, 2018. This will allow operators and haulers the ability to complete committed work from 2017 that carried forward into 2018 and allows them to bid new 2018 jobs accordingly.
Strategic Plan/Policy/Legal/Staff Implications:
Responsible Leadership; Guiding Principle 4.1; Broad Objective: Ensuring our municipal cost structure is aligned with defined service levels and economic realities
Financial Impact:
Cost: $521,333.90 of increased revenue (annually) - approximated
Source of Funding: n/a