To help local businesses keep their head above water, the City of St. Albert has pushed back the implementation of a new stormwater-rate formula to 2023.
Council approved the delay on consent during the Aug. 31 meeting. Originally the rate changes would have started to take effect on Jan. 1, 2021.
Jennifer McCurdy, president and CEO of the St. Albert and District Chamber of Commerce, said she welcomed council's decision.
"They're recognizing that businesses have been strongly impacted by COVID, and so (council's) willingness to postpone it is really positive," McCurdy said.
"It's just another hurdle businesses don't have to worry about right now, so it gives them peace of mind."
Instead of using a flat rate system, which charges single-family homes, apartments, and commercial and industrial properties different fixed prices, the new model will calculate rates based on property lot size, taking into consideration how much runoff each property produces and charging them based on that calculation.
Overall, the changes will see 72 per cent (17,709 total) of customers paying less under the new system. However, having businesses shoulder more of the cost-recovery for stormwater management would add another financial strain to the local business community, especially for those already struggling with the financial impacts of the COVID-19 pandemic.
Larger businesses would see more significant cost increases, with just over 200 non-residential customers paying $1,000 or more per year.
"We cannot ignore the fact that many businesses have suffered badly during these last few months and will potentially continue to endure hardship for many months to come," reads a city background document on the motion.
Other issues were identified as well. Inconsistencies arising from the city's land title data need to be worked through to ensure the city can automate stormwater rate calculations, the document reads.
In addition to the delay, council passed recommendations for the remaining $37,700 for implementation be carried forward over the next two years.
Given the changes will take effect after next year's municipal election, administration will also schedule a council training workshop to review program goals and share updates on the project in the first quarter of 2022.
Mayor Cathy Heron said she had mixed feelings about delaying the implementation of the new rate system.
Bigger businesses collect more rainwater than single-family homes do, and a blanket cost doesn't account for that, she explained. Instead of being absorbed by grass, rainwater collects off larger roofs and parking lots before moving into the stormwater drainage system.
The new rate structures are aimed at levelling the playing field, while potentially incentivizing businesses to incorporate property changes like covering their rooves with grass to alleviate costs, she said. "But I do appreciate that right now, when people are struggling with other things, it's not the right time to bring it forward," Heron said. "We're here to support businesses."
When council first approved the new rate system in 2018, the St. Albert and District Chamber of Commerce spoke to the Gazette about their concerns with the proposed changes as some larger businesses would see their rates skyrocket to more than $10,000 a year.
"These are companies that pay huge amounts of taxes – the St. Albert Gazette, the St. Albert Centre, some of the bigger plants – it was going to have a big impact on them," McCurdy said.
Another concern raised by the Chamber was how the new rates could impact the city's competitiveness in the eyes of larger investors. Postponing it may help attract new investment, McCurdy said.
"I'm pleased to see that it was on their radar and that they're looking at ways to to help businesses right now. I think it's a really positive step by council."
There are still challenges ahead for St. Albert's business community once federal supports come to an end. To get a better picture of the road to recovery, the Chamber is hosting a roundtable discussion for members with Mayor Heron, MLA Marie Renaud and MP Michael Cooper on Sept. 18 over Zoom.
