ATHABASCA – With the original options for changes to the linear assessment model now off the table and a new path forward for municipalities and energy companies, Athabasca County councillors had high praise for the local MLA and the minister.
Councillors expressed their gratitude to both Athabasca-Barrhead-Westlock MLA Glenn van Dijken and municipal affairs minister Tracy Allard at their Oct. 28 meeting, the first since the new changes were announced, and motioned to write to both of them, giving thanks for their work on the file in recent months.
Proposals that would have seen municipalities lose up to 20 per cent of their tax base have now been replaced with a program that will see the government exempt new wells and pipelines from taxes for the next three years, allow a 35 per cent reduction on shallow gas wells to move forward, reduce assessments for less productive wells and scrap the well drilling equipment tax for new drills.
“This is what we’ve been fighting for the last couple of months … It’s not really going away, but they’ve put a pause on it, but will put some depreciation adjustments on lower producing wells,” county manager Ryan Maier told council.
That depreciation will cost Athabasca County $48,331 in revenue, but it’s a far cry from the millions that could have been lost if any of the initial proposals had been adopted.
Council reviewed a letter from minister Allard, dated Oct. 20.
“It is clear to me and my government colleagues that it may not be possible to strike the right balance, and do the right thing for the long term, if we implement comprehensive assessment system changes amidst the current uncertainty. Accordingly, we will not be proceeding with any of the assessment model review scenarios,” Allard’s letter said.
Maier recommended council have letters of thanks written to the officials.
“All of the people that I’ve talked to in these inner circles of government have said MLA van Dijken did go to bat for this area, he did speak up, as did the municipal affairs minister. She listened, and I really think without her intervention and really digging into this we would be looking at some serious budget issues this year,” he said.
Reeve Larry Armfelt agreed, saying in the meetings he attended with municipal counterparts from other counties, van Dijken was all ears.
“We’ve got to thank them for listening to the rural voice in Athabasca County,” he said.
While that’s all well and good, Coun. Christi Bilsky also asked about any action the province was taking to help municipalities collect taxes that have gone unpaid by energy companies in recent years, and what the outlook was for this year.
Maier responded that taxes are not due until the end of November, but as of the day of the meeting, the county was still expecting about $9 million.
