PENHOLD – Like many municipalities in the province, the Town of Penhold is waiting to learn more details about Alberta's looming carbon tax and its impact on the town.
“We're budgeting for it,” said Rick Binnendyk, chief administrative officer for the town.
He said the province has told the town what it will charge for diesel per litre, gas per litre, propane and natural gas. One area of concern for Penhold is electricity.
“We've heard nothing about electricity which is a large (component) for Penhold,” he said, noting the lack of clarity from the province. “That's what (the carbon tax) is supposed to be for -- to improve our environment, but there's no real clarity as to where it's going and the purposes of it.”
Binnendyk noted the possible impact the tax could have for the municipality.
“The direct impact will be one of two things. (The town) will have to cut back on some services or they'll probably have to absorb costs by taxation because it has to be paid for,” he said.
During the recent Alberta Urban Municipalities Association meetings this fall, Binnendyk noted there was a request for a resolution from municipalities in attendance.
“There was a request through our association that municipalities, schools, and hospitals should all be exempt (from the carbon tax) because it's passing the dollar back onto the taxpayer again,” said Binnendyk.
“They might say it's a fairly minimal cost but it does escalate simply because everybody has to pass it on. It becomes a multiplier problem.”
Mayor Dennis Cooper said homeowners will be hit hard with the tax, just like the town will.
“When it comes to the municipality, we're also going to be getting the same ‘heavy levy' tax on us and with that it's going to drive costs up,” said Cooper. “We know it's going to be thousands of dollars. We're going into a budget season and everybody is so worried about the budget season because of lack of information and the lack of the ability to plan.
“We're supposed to govern and lead our town forward in our term but our partner in governance, the province, hasn't reached out to us and told us what these costs are going to be,” he added. “It's very disappointing to go into a budget year when you don't know any information.”
Cooper noted the difficult year ahead for budgeting and how the town will need to consider cutbacks, restraint and how to move forward with capital projects.
“We have experienced councillors that I'm sure will reach down and figure out how we can move our town forward and try to keep the impact on the taxpayer as small as possible,” Cooper concluded.
Mayor Dennis Cooper
"We're supposed to govern and lead our town forward in our term but our partner in governance, the province, hasn't reached out to us and told us what these costs are going to be."
