PrintSt. Albert is not viable
In his Jan. 28 Gazette column Business Buzz, Larry Horncastle posed the question Is the City of St. Albert viable? While he did not give an answer, he set out certain facts directly related to property tax, the lifeblood of any municipality.
To reiterate, SAEDAC in 2004 recommended to Mayor Plain and city council an economic plan (EDMP). Its purpose was to attain, by 2024, an 80/20 split between residential and non-residential taxable assessment. For the last seven years, 2005-11, the taxable assessment has fluctuated in a narrow range between 89 and 91 per cent. To achieve the goal of an 80/20 ratio over the next 12 years may appear daunting to city council with the result that it may be scrapped.
Why did SAEDAC choose 80/20 rather than a different ratio? I can only guess. The reason may be because in 1987 that was the ratio. But in the subsequent years there was a steady erosion of this ratio to what it is today. Past city councils chose to ignore this issue. Our present city council may take a pass on this issue and the St. Albert residential taxpayer will continue to shoulder the tax load.
Larry Horncastle mentioned that the total 2011 tax revenues received by the city were split 83 per cent residential and 17 per cent non-residential. Some may be quick to say we have achieved our goal 83/17 is close enough to 80/20. Nothing needs to be done. Hold on a minute and consider that the city has a large number of retail businesses. These businesses pass on the non-residential tax to their customers in the price of their goods and services. On the assumption that these businesses have an even split between St. Albert and non-St. Albert customers, the tax revenue ratio becomes one of 91.5/8.5. Whether taxable assessment or tax revenue is the basis for the discussion of St. Albert municipal taxation, the result is the same. The St. Albert residential taxpayer continues to carry a larger tax load when a comparison is made with other municipalities in Alberta.
My answer to Larry Horncastle is that the City of St. Albert is becoming less viable and will become a part of the City of Edmonton.
William Tuchak, St. Albert
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