Village of Heisler : dissolution study

2008·4.8 MB·English

by  Alberta. Alberta Municipal Affairs

Liberia
Municipal Affairs
mm
Village of Heisler
Dissolution Study
August 2008
** ^ & ' **
www.municipalaffairs.alberta.ca
Alberta Municipal Affairs
© G overnment of Alberta 2008
ISBN 978-0-7785-7173-5 (printed version)
Printed in Canada
What is municipal dissolution? councils and administrations of the village and
county, and from provincial records.
Dissolution is a l egal process under the
Why consider a d issolution
province’s Municipal Government Act. This study?
process occurs when a municipality's status as
an incorporated municipality is changed to
On November 6, 2007, the Ministry of
become part of a b ordering municipality.
Municipal Affairs received a sufficient petition
The Village of Heisler is an incorporated
from electors in the Village of Heisler.
municipality. This means that within its defined
The Minister initiated a d issolution study as
boundaries, the village council has the power to
required under section 130(2) (b) of the
pass bylaws, the responsibility to provide
services to residents, and the authority to collect Municipal Government Act.
property taxes and other revenues to support
those services. What is the existing situation
in Heisler?
If Heisler were to dissolve, it w ould no longer be
a municipality, but would become a h amlet in Heisler was incorporated as a village on
Flagstaff County. The county council would
August 14, 1920 with a p opulation of 125. It
then be responsible for governing, serving, and later dissolved into a h amlet on April 14, 1938,
taxing the residents of Heisler in addition to the
to become part of the Municipal District of
population that it already serves. Melrose No. 426, of which lands are now part of
Flagstaff County. On January 31, 1 96 1 , t he
What is a d issolution study?
hamlet was re-incorporated into a v illage with a
population of 231.
A d issolution study is a report to assist Alberta’s
Minister of Municipal Affairs in deciding if a The village is located approximately
proposed dissolution should proceed. 170 kilometers southeast of Edmonton on
secondary highway 855. Flagstaff County is the
The Village of Heisler dissolution study
highlights what residents could expect to happen village’s rural neighbour.
if their municipality were to dissolve. It looks at
According to Ministry records, the village's
the municipal functions, services, financial population is 153 in 2008. This reflects a
situation, and community issues in the Village of decrease in p opulation of 20 per cent in the last
Heisler.
5 y ears, and a d ecrease of 27 per cent in the last
The study compares how the village provides 10 years.
services and how the county would provide Residents elect three councillors to govern the
those services to Heisler residents if the village village. The village council appoints the mayor
were to dissolve and become a h amlet in the annually at its organizational meeting.
county.
What is the financial situation
The areas that are examined in this report in Heisler?
include the possible changes to service levels,
council representation, administration, and Note: The following financial information is
municipal finances.
taken from the Village of H eisler audited
Alberta Municipal Affairs obtained the municipal financial statements from 2003 to
2007, from Financial Information Returns (FIR)
information for this dissolution study from the
August 2008 1 Village of Heisler Dissolution Study
and from the Alberta Capital Finance According to the Alberta Capital Finance
Authority, the amount of village debt
Authority ’s records.
remaining on December 31, 2007 was
Operating Fund
$56,595.08.
The following table summarizes the village's The total annual loan payment due in 2008 is
actual operating revenues and expenditures
$23,622. Of this amount, approximately
from 2003 to 2007:
$22,000 is p lanned to be covered by utility fee
revenue. The remaining amount is p lanned to
Total Total Net
Year be covered by general revenue. The existing
Revenue Revenue
Expenditures debt is scheduled to be paid off in 2010.
2003 212,322 183,273 29,049 Equalized Property Tax Assessment
2004 213,770 192,625 21,145
Equalized assessment is a uniform way of
2005 240,316 234,429
5,887 comparing property wealth for all
2006 268,451 216,982 51,469 municipalities and is calculated by Alberta
2007 311,527 232,938 78,589 Municipal Affairs.
The village’s equalized assessment for 2008 is
This table shows an annual trend that the $3,250,062. It has increased by eight per cent
from 2004 to 2008. The assessment base is
village brings in sufficient operating revenues
comprised of approximately 69 per cent
to cover operating expenditures. Annually, the
village has contributed a p ortion of the residential and 3 1 p er cent non-residential
assessment.
operating surplus to the capital fund or reserve
fund. Net Municipal Property Tax
The net municipal property tax levy is the
On December 31, 2007, the village’s operating
fund balance was $95,707. amount of money required from the property
Capital Reserves assessment base to support the village’s
operations. It does not include requisitions for
Reserves help a municipality plan and pay for
education or the seniors’ foundation.
future projects or emergency repairs. If
reserves are not sufficient, a municipality may Between 2003 and 2007, the village’s
expenditures have remained fairly constant,
have to fund capital projects or emergency
which resulted in little change to the annual
repairs from other sources such as taxation or
by borrowing. tax levy over the same period. In the five-year
period, the smallest tax levy was $ 1 04, 698 in
On December 31, 2007, the village held capital
2003, and the largest was $124,953 in 2007.
reserves of $ 1 0 1 ,420.
This shows the annual amount of money
Debt
collected from property taxation has not
The village has two loans from the Alberta changed significantly over the past five years.
Capital Finance Authority. The first loan was Tables 1 and 2 s how what owners of sample
used to fund the construction of a new water
residential and non-residential properties in
supply system in 1985. The second loan was
used to fund the installation of three insulated Heisler will pay to the village, and could have
overhead doors for the village utilities building expected to pay if Heisler had been a h amlet in
in 2004. Flagstaff County in 2007. It is important to
August 2008 2 Village of Heisler Dissolution Study
note that taxes may not be the only financial Additional assets include such things as
cost that would change should dissolution buildings and public works equipment.
occur. Utility rates could change, and
On December 3 1 , 2 007, the village had
additional fees may be considered for services
financial liabilities of $372,485. These include
that the Village of Heisler now provides that
such things as long-term debt, deferred
Flagstaff County does not provide in other
revenue, and accounts payable by the village.
areas of the county. These factors would have
an effect on the cost of living in Heisler. This means that if the village had dissolved in
What would remain the same if 2007, there would have been more assets than
liabilities. If dissolution had occurred, the
the village dissolves?
village could have paid for all of its liabilities
and still have had assets left over.
- 911 service
- Ambulance service Upon dissolution, the village’s assets and
liabilities would transfer to the county.
Electrical power and gas utility providers
The county would be required to deposit cash
and franchise agreements
and any proceeds from the sale of Heisler
Family and community support services assets into a special reserve fund used only to
reduce liability incurred by the Village of
Garbage collection and recycling
Heisler, or for projects in Heisler. The reserve
Options for payment of property taxes fund remains established until the funds are
RCMP service
depleted.
Safety codes inspection services Bylaws
Snow removal from church parking lot Currently, the village enforces three bylaws
What would change if Heisler (Licensing and Control of Dogs, Unsightly
dissolves? Property, and Noise) through contracted
services.
Potential changes include the following:
Upon dissolution, existing village bylaws
Assessment Services would remain in force in Heisler until the
county council either amends, repeals, or
The village currently uses a c ontractor to
replaces them.
provide assessment services.
The county would review all village bylaws.
Upon dissolution, the county would become
If a v illage bylaw is similar to a c ounty bylaw,
responsible to provide assessment services for
the bylaw would be repealed and replaced by
Heisler properties. The county employs its the county bylaw.
own assessors, who would conduct the
assessment in Heisler. Upon dissolution, Flagstaff County peace
officers would provide bylaw enforcement
Assets and Liabilities
services.
On December 3 1 , 2 007, the village had liquid Capital Projects
financial assets of $5 1 5, 1 35. These include
cash, receivables, and land for resale. Currently, the village has a multi-year capital
infrastructure plan.
August 2008 3 Village of Heisler Dissolution Study
Upon dissolution, the county would complete
A v olunteer is the village’s disaster services
the projects identified in the plan if funding is director. The village is a member of the
in p lace. Projects proposed where sufficient Flagstaff Regional Partnership, which supports
funding is not in p lace could be completed by the local disaster services director by
providing training programs for and
utilizing Heisler’s reserve funds.
coordination among the member
County infrastructure plans would be amended
municipalities.
to include Heisler.
Upon dissolution, Heisler would be included
Council Representation and Meetings
in the county’s Municipal Emergency
The village council consists of three members
Response Plan. The county’s Regional
elected at large by village residents. The Emergency Services Coordinator would
village council appoints the mayor annually at become the disaster services director for the
its organizational meeting. Heisler area.
Council meets once per month at 7:00 p.m., Employees and Administration
with the meeting date set at the previous
The village currently employs one permanent
council meeting, to accommodate the work
schedules of members of council. employee on a p art-time basis as the Public
Works Operator. The village also hires a
Flagstaff County council consists of seven seasonal staff person to work in the public
members elected from seven electoral
works department.
divisions. The county council appoints the
The village contracts administrative services
reeve annually at its organizational meeting.
from Flagstaff County.
Upon dissolution, Heisler residents would join
Upon dissolution, the county would employ
the county’s electoral division 5. The division
the public works operator for at least the
5 c ouncillor, currently Charlotte Curtis, would
transitional period to assist in winding down
represent Heisler residents as well as the
residents from the rest of the division. the village’s affairs and ensure continuity of
service to residents.
The county would need to consider adjusting
Fire Services
electoral boundaries prior to the next
municipal election to ensure an equal The village owns the village fire hall. The
population distribution between county volunteer fire department provides fire
electoral divisions. protection in the village. The cost to operate
the fire department is covered by village
County council meetings are held the second
and fourth Wednesday of each month gceonuenrtayl. revenues, and a c ontribution from the
commencing at 9:00 a.m. at the county office
in Sedgewick. The village has an agreement to provide fire
and rescue services to part of Flagstaff County.
Heisler residents would be represented by
The village owns two fire trucks. One is
county councillors on boards and committees
primarily used to service the village, and the
in the community. Heisler residents would be
other is used primarily to service the county.
eligible for election to the county’s council.
The village and county fund capital equipment
Disaster Services on a 5 0/50 basis.
Currently, the village has a M unicipal The Regional Emergency Services
Emergency Response Plan. Coordinator acts as a r egional fire chief and
regional disaster services coordinator.
August 2008 4 Village of Heisler Dissolution Study
The Flagstaff Regional Partnership is currently Upon dissolution, Heisler would no longer be
reviewing levels of fire and rescue services eligible to apply directly for municipal grants;
across the county and in the 10 urban
however, the county's allocation would
increase for most grants. The county would
municipalities within the county's boundaries,
including the Village of Heisler. The review is complete any initiated or funded projects in
expected to be completed in the fall. If Heisler.
dissolution occurs, the recommendations from
The county would use its future grant funds to
this review may impact the types of fire and
address county priorities, including those in
rescue vehicles and equipment maintained in
the hamlet of Heisler. Future projects and
Heisler. The degree of impact will not be
programs in Heisler, potentially funded by
known until the review is complete.
grants, would be considered along with the
At this time, the county does not have its own needs of the rest of the county.
fire department. Grass Cutting
General Inquiries and Emergencies
The village cuts the grass on village-owned
The village administration is the contact point property, and if necessary, will cut grass on
for general inquiries, and water and sewer unsightly premises, and charge property
emergencies during regular business hours. owners for the service. The village also offers
The village office is open to the public on
grass cutting to private individuals on a f ee-
for-service basis.
Wednesdays from 9:00 a.m. - 4 :00 p.m. On
other weekdays, village residents can contact
Upon dissolution, the county would continue
village administration by dialing the village
to cut grass on municipal property, and if
phone number, and their call is forwarded to
necessary, on unsightly premises, but would
the county office in Sedgewick.
not offer service to private individuals.
The phone numbers of the mayor and deputy Library
mayor are posted on the village office door for
Currently, the Heisler Municipal Library
after- hour emergencies. They in turn, contact
the village public works operator to handle Board operates the library. The village is a
water and sewer emergencies. member of the Parkland Regional Library
System, which provides services to the
Residents can get information at the village
municipal library. The village provides a p er
office during regular business hours, by
capita contribution to the library and to the
contacting one of the members of council, the
regional library system. In addition, the
monthly newsletter, and the village website.
village provides an annual grant to the library
Following dissolution, the county would to cover the costs of its insurance premiums.
provide a p ackage of information about the The library is located in the post office
county to residents at the time of dissolution, building, and rents the space from a p rivate
including an organizational chart, after hours landlord.
emergency and regular contact phone
In accordance with the Alberta Libraries Act ,
numbers, and how to contact the area
if dissolution occurs, the Heisler Library
councillor or attend a m eeting of county
Board would dissolve prior to the village
council.
dissolution. Assets owned by the village
Grants
would become the county's property and those
owned by the Parkland Regional Library
The village currently applies for a v ariety of
System would be returned to the system.
grants based on village priorities.
August 2008 5 Village of Heisler Dissolution Study
Upon dissolution, Flagstaff County would was less than $650, then a m inimum tax of
evaluate the possibility of maintaining a $650 was applied;
library in Heisler.
If the 2007 property tax calculated at
If p ossible, Flagstaff County would like to see village rates for vacant residential and
the library continue to offer services. It would
non-residential properties was less than
be county policy not to continue to provide an
$300, then a m inimum tax of $300 was
annual grant to cover the cost of the library’s
insurance premiums. applied;
If a vacant property is adjoined to an
If the library closed, residents would be able to
occupied property, owned by the same
use other libraries in the area such as
owner, the $300 minimum tax for the
Forestburg Galahad, Killam, Hardisty,
vacant property was waived and the
Lougheed, and Sedgewick.
assessment of the improved property is
Municipal Planning used to calculate the tax levy for the
properties; and
Currently, the village has a l and-use bylaw and
contracts for municipal planning and If a p roperty has a split assessment
development services. The village public between residential and non-residential,
works operator acts as the village development the non-residential minimum property tax
officer and village council acts as the village rate was applied.
subdivision and development authority.
The village’s minimum tax provisions changed
in 2008 so that every property is assessed and
Upon dissolution, the village’s land-use bylaw
taxed separately, regardless of ownership. In
would remain in effect until the county’s land-
use bylaw is changed to include Heisler. 2008, the minimum tax rates are:
The county contracts for municipal planning If the 2008 property tax calculated at
from a d ifferent service provider than the village rates for occupied residential
village. Heisler residents would contact the properties was less than $550, then a
county development officer in Sedgewick for minimum tax of $550 applies;
planning related matters. County staff would
If the 2008 property tax calculated at
act as the subdivision and development
village rates for occupied non-residential
authority.
property was less than $650, then a
Municipal Taxes minimum tax of $650 applies; and
The village establishes municipal tax rates that If the 2008 property tax calculated at
generate funds to pay for programs and village rates for vacant residential and non-
services provided to residents and to cover the residential properties was less than $300,
then a minimum tax of $300 applies.
village’s debt payment. In 2007, the village
had the following minimum tax rates:
Upon dissolution any taxes owed to the village
If the 2007 property tax calculated at would be owed to the county.
village rates for occupied residential
Currently, the county does not have a
properties was less than $550, then a
minimum tax rate, but would consider
minimum tax of $550 was applied;
implementing a m inimum tax rate following
If the 2007 property tax calculated at dissolution of the village. The county,
village rates for occupied non-residential however, would not continue with the policy
property to waive taxes on vacant properties adjoined to
August 2008 6 Village of Heisler Dissolution Study
occupied properties, owned by the same The village owns and operates the sports
owner. This means that each property would grounds, which include campgrounds, an RV
be assessed and taxed separately. dump, ball diamonds, concession booth,
showers, washrooms, a t ennis court, and a
The county's 2007 combined tax rate for
residential properties is approximately 53 per
playground.
Upon dissolution, ownership of the community
cent less than the village’s tax rate. For non-
residential properties, the tax rate is hall, the recreation centre, parks, trails, bus
approximately 46 per cent less. shelters and sports grounds, would transfer to
the county.
For a b reakdown of the 2007 tax comparisons,
refer to Tables 1 and 2 o n pages 10 and 1 1 . The county would plan to enter into
agreements with the current operators to
Municipal Tax Due Dates and Penalties for
continue to operate the community hall, and
Unpaid Taxes
recreation centre.
Village property taxes are due in the year they
The county would seek to have a c ommunity
are levied, and are payable 59 days after the
date of the tax notice. organization provide grass cutting and
maintenance of Heisler parks and the sports
A p enalty of 1 2 p er cent is levied on unpaid grounds, and manage bookings for the sports
current taxes after 60 days from the date of the
tax notice, and a f urther 12 per cent on January grounds.
The county would remove snow from the
2 o f the following year.
walking trails and maintain the bus shelters.
Upon dissolution, Heisler property owners
County public works staff would continue to
would receive a t ax notice from the county in
cdoulmlpec.t campground fees and maintain the RV
future years. Property taxes are due and
payable by October 1 5 i n the year they are
Roads and Sidewalks
levied and would be subject to the county’s
due dates and penalties. A p enalty of 1 2 p er
The village provides for the construction and
cent is levied on unpaid taxes on October 1 6,
maintenance of the road system.
and an additional 6 p er cent is levied on all tax
arrears on May 1 of the following year. There are approximately 5 k ilometers of roads
in the village, with Main Street being the only
Recreation Facilities and Parks
paved road. The rest of the roadways are
The Heisler Community Hall is owned by the either cold mix or gravel. The gravel surfaced
Village of Heisler, and is operated and roads receive an application of dust control
maintained by the Community Hall Board. agent as required. Dust control is p aid for
The Heisler Recreation Centre is owned by the through the village’s general revenue or
available grant funding.
Village of Heisler, and is operated and
maintained by the Heisler Agricultural The village does not have a f ormal policy for
Society. snow removal priorities; however, the public
works operator typically services Main Street
Village parks and walking trails are owned and
first and removes snow from other roadways
maintained by the village.
as required.
The village owns two covered bus shelters in
The village has a snow removal bylaw that
the village for use by students during the
winter months. requires property owners to remove snow from
the sidewalks fronting their property.
August 2008 7 Village of Heisler Dissolution Study
The village provides in-kind snow removal at Customers, who pay their fees for the entire
the church if special requests are received. year prior to February 28, receive water and
wastewater services free of charge for one
Upon dissolution, the county would assume
month.
the care, control and management of the
village roadways and sidewalks. The basic Upon dissolution, Heisler residents would pay
level of service in the county is a w ell- their utility bills to the county. The county
maintained gravel-surfaced roadway; accepts payment at the county office in
therefore, Heisler should expect the same level Sedgewick. The county would also make
of service from the county. The county has arrangements for payments to be made at a
3,125 kilometers of roadway to maintain and financial institution in Heisler.
has yet to determine the frequency of regular
The county would continue to offer one month
maintenance, or the priority of snow removal of free water and wastewater service when the
that Heisler residents could expect.
utility fees for the entire year are paid prior to
February 28.
Current policy is that dust control applications
are cost shared in the county. Residents are
Utility Rates
required to pay for the cost of the dust control
product and the county pays for the The village utilities include water, sewer, and
application. Heisler residents should expect to waste management.
be subject to a similar policy.
In 2007, monthly service charges were as
follows:
The cost of any future paving or new
sidewalks would be charged to residents in the Residential Water: $25.00 per month;
form of a l ocal improvement tax. Residential Wastewater: $25.00 per month;
Streetlights Non-Residential Water: $35.00 per month;
Nmoonnt-h ;Re sidential Wastewater: $35.00 per
ATCO owns, operates and maintains the
streetlights. The village pays the electricity - Cmoonztyh ; C omer Residential Water: $12.50 per
costs from general revenues. In 2007, the cost
was $10,841 .
Cozy Comer Residential Wastewater:
The county does not have any other hamlets $10.00 per month;
within its boundaries and does not provide Residential Waste Collection and Disposal:
streetlights elsewhere in the county. $14.00 per month; and
Non-Residential Waste Collection and
Upon dissolution, residents should expect to
Disposal: $18.25 per month.
have the cost of streetlights added to utility
bills. In 2004, 2006, and 2007, the total revenue
from utility fees generated enough money to
Based on 2007 costs, this is estimated to be cover the operational costs for the utility
$1 1.50 per month.
systems including the utility-related debenture
Utilities payments; however, there has been an annual
trend where a surplus from the sewer utility
Utility Billing
has covered a d eficit from the water utility.
Village utility bills are issued bi-monthly and In 2005, the village had an unbudgeted
can be paid by cash or cheque at the village
expenditure of approximately $22,000 because
office.
of a w ater main break at the water treatment
plant, which created a d eficit that year.
August 2008 8 Village of Heisler Dissolution Study