A provincial decision not to charge municipalities to access electronic vehicle records has raised the question of what St. Albert will do with the $385,000 it will now not have to spend on record searches.
Last week, the Progressive Conservative government announced it was holding off charging municipalities a $15 search fee until at least budget time next spring.
City council increased the municipal property tax rate last spring to bring in an extra $385,000, which was the then-estimated 2011 impact of the search fees.
City manager Bill Holtby was asked at council Monday what would happen if this change yields a surplus at the end of the year. He said surpluses are automatically held in reserve until council decides what to do with this extra money.
Even with the search fees now on hold, it’s uncertain whether the city will realize a surplus at the end of the year, said Mayor Nolan Crouse.
This is because the city is on pace to post deficits in some other areas, most notably snow removal — to the tune of $600,000.
“If all else stays exactly the same, that surplus is going to have to pay for the snowfall,” he said.
If there does wind up being a surplus, council will address it at the end of the year, he said.
“It will be like any other surplus. There’s going to be debate at the end of the year by council. Should it go back to the taxpayers? Should it be supplemented to fill a reserve that might be depleted?”
Parking fines
On Tuesday, council will discuss reversing the $15 parking fine increase it passed in mid-August to offset the search fees.
“I firmly believe that because we raised it for one specific reason, and that reason no longer exists, we owe it to the public to reduce it back to the original levels,” said Coun. Cathy Heron, who is bringing the motion forward.
Red Deer’s city council killed that city’s parking rate increases earlier this week.
Mayor Nolan Crouse thinks St. Albert will follow suit.
“I’m sure we’ll end up doing it. That’s my guess,” he said.
The parking fine increase was only projected to bring in $16,000 more in revenue while the $15 search fee was expected to cost $490,000 in 2012.
The bulk of the fees would apply to searches related to photo radar and intersection violations.
