Mountain View County councillors started the budget process last week with a review of the Budget 2020 environmental scan report prepared by corporate services.
“Before the budget is fully prepared and presented to council, a report is brought forward that analyzes important issues and trends that need to be considered in order to make strategic budget decisions,” administration said in a briefing note to council.
“The environmental scan also provides an opportunity for dialogue and clarifications, and helps identify budget constraints and opportunities.”
The report touches on such things as county mill rates, assessment, oil and gas projections and debt.
“Mountain View County is in a strong financial position,” the report states. “It will have about $50 million in cash and investments at the beginning of 2020. This is coupled with a low debt position that will be mostly paid off in the next five years. The balance at 2024 will be $2.2 million.”
The county long-range infrastructure plan (CLIP) report states that the current infrastructure supports the current needs of the county.
“There are no major developments currently proposed that will change that statement. As well, the cyclical oil and gas industry is not expected to see a boom period like 2010-2014. The current year will see an estimated 25 wells drilled compared to the hundreds that were drilled during the early boom period.
“Key points of the CLIP report to consider in this budget cycle (include) in the funding model it states that revenue shortfalls will be covered through mill rates.”
Regarding taxes, the report states that the county has low mill rates compared to the rest of the province.
“Both residential and non-residential rates are below the average. While the county is in the top 40 for highest ratio between the two, we still have room until we hit the maximum ratio of 1:5. This gives the county some options in addressing any revenue shortfall from a mill rate perspective.”
Regarding assessment, the report states, that any significant real growth in property values in 2019 is not expected.
“This is based on the development permits issued as of June 30, which was presented to council in a quarter report from planning and development.”
Regarding oil and gas, the report states that the industry remains the “most important driver of the economic sustainability of the county, with at least $1.5 billion in assessment or $15 million in property tax that can be attributed to this industry.
“The Alberta industry has experienced some hard time in the last number of years, and it is expected to continue until pipeline capacity is increased. It is not expected that significant drilling will happen in the county until capacity issues are addressed.”
The environmental scan report also included a proposed budget timeline, calling for a project budget to be provided to council in November.
Council accepted the environmental report as information.
