Discussions ongoing over offsite levies for future developments

By John Watson Local Journalism Initiative Reporter

Strathmore continues to consider the implementation of additional offsite levies ahead of imminent development requirements to support a growing population.

Discussion was brought before the committee of the whole during the Jan. 14 meeting.

“Soft levies are a tool to ensure that new development continues to support the capital cost of essential community infrastructure such as fire halls, police stations, recreation facilities, and libraries,” said Jamie Dugdale, director of infrastructure, operations, and development services. “In terms of strategic alignment, implementing soft levies in the Town of Strathmore would support several of council’s strategic priorities such as community development, wellness, and financial sustainability.”

Dugdale explained this type of approach helps to maintain predictable tax rates, build financial reserves, and support sustainable municipal growth.

The idea is to effectively relieve the tax burdens of new growth and development from existing residents and taxpayers by delegating costs to new properties, ventures, and residents.

“Strathmore currently has an offsite levy bylaw for hard services such as roads, water pipes, and sanitary sewer pipes,” added Dugdale. “Recent changes to the (municipal government) act now allow municipalities to charge offsite levies for soft services or for facilities. Several municipalities have implemented those soft levies. These include Edmonton, Calgary, Chestermere, Cochrane, and High River.”

Dugdale explained to the committee a key issue council will have to consider is the identification of eligible facilities for offsite levies such as a fire hall, a police station, recreation center, or a library.

He added town staff may be directed by council to move forward with developing the required policies and bylaws to support further offsite levies, as well as to prepare an implementation plan.

A contingency does exist within the municipal government act to develop redevelopment levies; however, in the context of the Town of Strathmore, current levies, as well as those proposed for future growth are focused on the emergence of new developments. 

CAO Kevin Scoble added the province has not to date drafted regulations or motions regarding making changes to current offsite levies policies. 

Coun. Claude Brown noted interest in how the town would go about finding a “sweet spot” in its levies to properly fund and maintain new infrastructure, while not unfairly taxing or dissuading developers and residents from coming into the town.

“The developers, they have to be engaged, they are a big stakeholder in this process. We are also aware of where Strathmore sits in terms of what our offsite levies are in comparison with some of the other (nearby) communities,” said Dugdale. “We also have to consider … the four facilities you could use those soft levies to fund. We can choose any or all of those that will mitigate and manage what that dollar value is. I do not want to presuppose what that will look like, but that would be a part of a subsequent report.”

Council will next discuss how to proceed with offsite levies during their strategic planning retreat.