The Municipal District of Greenview could see its annual revenue drop by up to 12 per cent due to the province’s new assessment model review for regulated oil and gas properties.
Similar to the approach taken in the County of Grande Prairie, the province is considering four different new assessment scenarios for how industry properties and equipment is evaluated and taxed; each with their own scale of financial impacts. Reeve Dale Smith says he hopes the province will find a sort of happy medium in its review.
“Greenview remains optimistic that the Province will find a balance in this review; one that will incentivize the oil and gas industry and maintain sustainability within Municipal Government,” he says.
The MD of Greenview’s infrastructure and maintenance costs are funded solely from taxes collected in the district. Similarly, financial contributions to not-for-profits, sporting events, tourism and economic development are all also funded by tax revenue.
According to the MD, roughly 94 per cent of their tax revenue is non-residential— which is exactly the type of revenue that would be redirected to the oil and gas sector at a direct cost to the municipality. To compensate for the losses, the MD, along with other afflicted municipalities will be asked to reduce spending.
The MD of Greenview is asking residents to contact their local MLA, as well as the provincial government to voice concerns over impacts that the Assessment Model Review may have on municipal revenues.
The province says the new model is designed to be a more modern approach to enhance competitiveness in the oil and gas industry, but the MD is more concerned about the costs to municipalities.