A proposed new Off-site Levy Bylaw has been presented to council, an initiative designed to bring in more funds to pay for future development infrastructure without burdening ratepayers with higher taxes.
While the proposed updating of the bylaw aims to set higher rates that will reduce the risk of shortfalls, its intent is also to be more in line with other Central Alberta communities the same size.
As well, administration's proposal, which will cover the cost for water and transportation systems, is not looking at funding sanitary sewer services through the bylaw. Instead, for the first time, it is looking at funding those services through separate agreements with developers, such as the current lift system program in the Woodlands development.
The updated bylaw proposal was given first reading by town council at its regular meeting on Jan. 11. Following an open house and consultation with the development community next month, the proposed revamped bylaw will be back to council on March 14 for second and third reading.
“This is a long-term funding tool,” said Craig Teal, the town's director of planning and operational services. “This is to ensure future growth pays for its share of the cost of infrastructure needed to support that growth.”
Teal's submission to council noted that in a report prepared last year by Tagish Engineering, more than $22 million is needed to fund municipal infrastructure to support new growth in the community. However, the rates set out in the current bylaw would result in a shortfall of up to $8 million, an amount that would have to be paid by local ratepayers.
Teal noted the proposed new rates would still leave a $3-million shortfall but added the tax base could “reasonably” cover that amount.
His report is calling for the average levy collected for residential development to be increased from $15,500 per hectare to $23,966 per hectare, based on a density of 10 units per hectare. Teal added the average levy brought in from non-residential development would increase from $12,000 to $16,000 per hectare to $23,996 per hectare.
Council was told that Innisfail's off-site levy rates were compared to other Central Alberta communities in 2013. While noting Innisfail's rates were both higher and lower in comparison to other sample communities, the new proposed rates are still “below the average.
“More importantly, it is based on the anticipated funding needed for the future infrastructure supporting long-term growth in the community,” said Teal in his report.
He noted that before council can approve the updated Off-Site Levy Bylaw, a consultation process must move forward with the development community. This includes advertising, and local developers being given the opportunity to review the updated bylaw.
The open house for the proposed updated bylaw is scheduled to be held from 4 to 7 p.m. on Feb. 11 in the Community Room at the Innisfail Library/Learning Centre.
Craig Teal
"This is a long-term funding tool. This is to ensure future growth pays for its share of the cost of infrastructure needed to support that growth."
