ATHABASCA – Cottagers in the summer village of Island Lake are going to have a new question in front of them this August: should the small municipality annex the neighbouring subdivision of Shank Estates?
Island Lake’s three-man council voted unanimously to approve the plebiscite question during their July 15 regular council meeting following a cost-benefit analysis prepared by Nichols Applied Management Inc.
“We were looking at the usage of our facilities by Shank Estates, and this makes sense because we share a road that really separates the two,” said Mayor Chad Newton in a July 24 interview.
Shank Estates is a subdivided lakeside community currently located within Athabasca County. Approximately 29 acres in total with 24 residential lots — 14 of which are developed for use — Island Lake is estimating the annexation would bring in an extra $18,500 in tax revenue, with costs rising an extra $12,500, leaving the net cash flow from the annexation at $6,000.
The plebiscite, which will be conducted via mail-in ballot after the Aug. 16 was decided via acclamation, will be the first time the municipality hears from its ratepayers on the issue, which has long been a topic of conversation around the village.
“It’ll be sent out to all our residents, and they’ll mail in their responses instead of having an election polling station,” said Newton.
Newton’s council has been working on the topic for a year after they inherited the idea from a previous council. In the 21-page Nichols report, the village’s consultant said the annexation would result in benefits for both Island Lake and Shank Estates, with the latter benefiting from the substantially reduced tax rate compared to Athabasca County.
As of writing, the residential mill rate in Island Lake is .0020, while the county’s is .0046, more than double. If the annexation went ahead, the report says the average developed property in the subdivision would see a reduction in taxation from approximately $1,110 to $990 or $740, depending on minimum taxation rates.
As of July 24, the summer village hadn’t yet reached out to Athabasca County, with Newton saying they would wait until the results of the plebiscite were in before formally starting the annexation process.
Athabasca County Reeve Tracy Holland confirmed that the county hadn’t received any formal information or requests on the topic, but was following along with the item through the summer villages' meeting minutes.
“Shank Estates is a small little subdivision that is pretty much right in their area, like, right there,” said Holland.
“I think there was something that was going on from quite a long time ago. This discussion has been out there for a long time.”
