Trochu Public Engagement Session Trochu is at a Crossroads The - - PowerPoint PPT Presentation

Trochu Public Engagement Session

Trochu is at a Crossroads

The Community is taxed as high as it can go and still remain sustainable. We CANNOT continue on the same path we’ve been going – a change must occur.

• There is a lot of confusion and

questions out there

• Tonight will answer a lot of

these questions

• Please write down any

questions or discussion points you think of

• After the presentation there

will be time to answers all of your questions and have any discussions you’d like to have

Linear Tax:

As described in the Municipal Government Act

• electric power systems
• street lighting systems
• telecommunication systems
• pipelines
• railway property
• wells

Designated Industrial Property

• facilities regulated by the Alberta Energy Regulator, Alberta Utilities

Commission or National Energy Board Linear Property Major Plant

“Property Tax” Assessment: is an estimate of what a piece of

property is worth.

Assessing Real Property: Most real properties are assessed by

using the “Market or Sales Method”. Here, sales of similar properties are compared to each other and adjusted for

• differences. This approach is similar to the method banks employ

to value property when they consider using a mortgage.

Mill Rate: Mill Rate is a factor that when combined with assessed

value will provide the value for taxes.

Trochu Strives to Be a “Good Neighbour” We are involved in numerous partnerships that make Trochu and the entire area stronger

• Kneehill Doctor Recruitment & Retention
• Shared Bylaw Officer
• Equipment Sharing agreements with Three

Hills & Kneehill County

• Hamlet Garbage Services
• Kneehill Regional FCSS
• Community Futures
• Marigold Libraries
• Kneehill Seniors Housing
• Transfer Site
• Drumheller & District Solid Waste

Management

• Palliser Regional Municipal Services
• Kneehill Regional Grant Writer
• Regional Assessment Review Board
• Red Deer River Watershed Alliance
• Red Deer River Municipal Users Group
• Boomtown Trail
• Central Alberta Economic Partnership
• Canadian Badlands
• Community Action Committee
• Kneehill Regional Emergency Management
• Regional Fire Management
• Kneehill Regional Partnership

Town of Trochu’s finances are no different then your household budget – it’s just a bigger scale.

• There are Revenue Streams - $$ In

&

• There are Expenses - $$ Out

What Are Trochu’s Revenue Streams?

• Residential Taxes (largest revenue stream)
• Non Residential Taxes
• Linear Taxes
• User Fees & Sale of Goods (Utilities, Arena

Fees, Pool Fees, Licenses, Permits)

• Grants

How Does Trochu Spend Money??

• Wages
• Equipment purchases & maintenance
• Water
• Infrastructure (roads, sidewalks, water lines,

sewer, buildings, hydrants etc. ) – new, repair & maintain

• Larger Projects That Don’t Happen Every Year

(Lagoon Expansion, Seniors Housing, Paving Projects etc.)

Current Large Capital Projects

• 1. Lagoon Expansion (The Lagoon is at capacity) – Estimated

Cost $ 3 Million Dollars

• 2. Paving Trochu Avenue – Estimated Cost $210,000
• 3. Paving Eckenfelder – Estimated Cost $ 360,000

Longer Term Capital Projects

• 1. Senior Housing Project
• 2. Other streets paved
• 3. Underground infrastructure replacement – water & sewer

lines

• 4. Sidewalks replaced

Revenue Stream Changes

Just like what can happen to you at home – you might get laid off, have your wages cut, or get injured – The Town of Trochu faces challenges with Revenue Streams too.

Municipal Sustainability Initiative (MSI)

An Alberta Government program that began in 2007, this fund can be used for operating and capital costs. It continues to fluctuate over the years and is not guaranteed past the end of 2019.

Regional Resource Urban Sustainability Grant (Kneehill County)

This program began in 2015 giving Kneehill County communities funding to help with operating and capital

• costs. This funding was calculated

annually based on the net tax generated by one mill of Kneehill County’s linear tax rate. This grant program was terminated without notice in 2018.

0.5 1 1.5 2 2.5 3 3.5 2013 2014 2015 2016 2017 Expenses Revenue

Trochu Revenue / Expenses Last 5 Years

Millions $

100000 200000 300000 400000 500000 600000 2013 2014 2015 2016 2017 2018 MSI County Grant

MSI & Kneehill County Grant Changes

Thousands $

5 10 15 20 25 30 35 2013 2014 2015 2016 2017 Expenses Revenue

Kneehill County Revenue/Expenses Last 5 Years

Millions $

5 10 15 20 25 Kneehill County (Residential) Trochu (Residential) Kneehill County (Non Residential) Trochu (Non Residential) 2018 2017 2016 2015 2014

Trochu & Kneehill County Mill Rates

Trochu Compared To Kneehill County Reserves

Trochu Kneehill County

Unrestricted Surplus: $628,840 Restricted Surplus: $821,745 Total: $1, 450,585 Unrestricted Surplus: $1,545,316 Restricted Surplus: $13,347,674 Capital Reserve: $29,823,369 Total: $44,716,359

Now that you have a better understanding of the situation I hope you agree that Trochu is at a crossroads. Council sees 4 options moving forward. As I present these options I want you to remember that Trochu is not an island, we are hub for the local area. Many county residents use our recreation facilities and

• ur businesses.

Option #1

We continue on the same path – we offset decreasing revenue and increasing costs with higher taxes and user fees (utilities, arena, pool etc.)

Option #2

We get a viability study done with the intent to move toward dissolution - becoming a hamlet. There are risks with this option:

• We could lose our arena & pool
• The Arboretum could be a low

priority

• Other services such as snow removal

could go down

Option #3

(Council believes this is the BEST Option)

Kneehill County partners with Trochu – participating in revenue sharing and strong partnerships. Working together to make the entire area stronger. Two really great possible partnerships are:

• 1. Seniors Housing Project
• 2. Developing an Industrial Park

Option #4

The province is making it mandatory that an Inter-municipal Collaboration Framework be

• developed. If Kneehill County is unwilling to

partner with us, as a town we could ask for mediation and voluntary arbitration to come to some sort of an agreement.

First! DON’T PANIC!

Dissolution is NOT council’s first choice and even if it was to happen it would take several years – it is not an overnight process.

We want your input!

How do you see us moving forward? Do you have a great idea? Please share them with us. There are pieces of papers provided for you to write your ideas down. You can also contact us through the website. Please get us your ideas by September 15th, 2018 so we can review those ideas and make a plan.

Reminder You are always welcome to attend council meetings. You can observe or if you’d like to speak just call the

• ffice prior to the meeting

and ask to be added to the agenda.

Thank you so much for coming.