Taxation, housing, as well as land use planning and development were front and centre during the fifth annual state of the municipality address, May 9.
Mayor Richard Ireland spent nearly half of his 30-minute speech talking about taxation and the need for additional revenue sources.
He expressed his disappointment that the revised Municipal Government Act (MGA) didn鈥檛 include measures to help communities generate additional revenue for their coffers.
鈥淲e had really hoped for more substantive change and we were not alone,鈥� said Ireland. 鈥淥ur ability to affect the revision to the MGA has now passed, but our commitment has not diminished.鈥�
He said finding additional revenue sources is critical to Jasper鈥檚 future because the municipality devotes a significant amount of its resources to host visitors but does not have the ability to recoup the associated costs.
鈥淥ur taxpayers pay for services which directly benefit visitors and although there is undeniable local economic benefit from visitation, other levels of government reap the lion鈥檚 share of the tax revenue,鈥� Ireland said, adding the province rakes in about $50 million annually from tourism activity in Jasper.
Compounding matters, he said unlike other municipalities in the province Jasper and Banff are severely limited in their ability to expand and increase their tax base.
鈥淛asper doesn鈥檛 have the opportunity to fund on the basis of growth. We have a municipal boundary established in federal legislation and even within that fixed boundary we face a commercial development cap. Real assessment growth in our municipality is negligible,鈥� said Ireland.
鈥淲e can鈥檛 finance tomorrow on the basis of today鈥檚 growth.鈥�
While the new act does not include additional revenue tools, Ireland said discussions with the province are continuing, including a meeting between the mayors of Jasper, Banff and Canmore and five ministers from the provincial government.
鈥淚 can鈥檛 say now that anything is imminent, but our resolve is steadfast,鈥� said Ireland. 鈥淲e continue to make the case to have our tourism communities, the workhorses of the provincial tourism economy, recognized as having unique challenges.鈥�
He said the first step is to get the province to recognize and acknowledge the towns鈥� special circumstances before identifying and acquiring additional revenue tools.
鈥淚 appreciate that there is unease that those tools have not yet been identified or selected, examples and possibilities have been floated, everything from a tourism-levy to a real estate transfer tax. We have hung our collective hat on nothing but principle.鈥�
Currently the majority of the town鈥檚 revenue comes for municipal property taxes, which increased by 1.9 per cent for 2017.
During his speech the mayor acknowledged that certain segments of the community are hurting, particularly the local retail sector.
Making matters worse, he said the current property tax regime is inequitable because it doesn鈥檛 take into account the type of business being taxed.
鈥淔ixed rents, which typically include a share of the landlord鈥檚 property tax, don鈥檛 float with business activity, but the property tax is tied to assessments,鈥� said Ireland.聽 鈥淧roperty assessments are by no means reflective of business activity.鈥�
For example, a property may house a variety of businesses such as a retail store or a restaurant, yet the municipality is only able to tax the property owner, who passes the cost along to the business owner.
鈥淎ssessments based on highest and best use of property disregard business reality and community need. Businesses are squeezed. The hurt arising from online shopping, from changing consumer preferences, from a slower provincial economy, are compounded by an inequitable assessment and property tax regime,鈥� said Ireland.
鈥淲e have worked to limit property tax increases, but we have been required to paint with a very broad brush.鈥�
Under proposed legislation municipalities may be allowed to increase the number of subclasses of non-residential properties to set different rates of taxation for different businesses, according to Ireland.
鈥淲e could conceivable have an accommodation or hotel subclass, a restaurant subclass, a retail subclass, perhaps an entertainment subclass, maybe a professional or office subclass and each could be taxed at a different rate,鈥� explained Ireland.
He said that could produce greater equity, but either way the municipality will still have a property tax that will be levied against the property owner, not the business.
Another big-ticket item on the town鈥檚 agenda is renegotiating land use planning and development with Parks Canada.
Later this month the mayor and CAO Mark Fercho will head to Ottawa to meet with Parks Canada officials to discuss the matter.
鈥淚 can鈥檛 say what that meeting will bring, but it is significant that the issue is now being discussed at the federal level, not just the local level. It鈥檚 only at the federal level where changes to the governance agreement might be made,鈥� said Ireland.
In conjunction with those discussions Fercho has also been working with Parks and the Jasper Community Housing Corporation (JCHC) to develop new housing in the community.
The three-point strategy includes moving forward on two development proposals put forward by JCHC, releasing land to private developers to create new residential units and to promote residential development by the private sector in areas already identified in past housing studies.
鈥淭he critical piece, as always, is land,鈥� said Ireland. 鈥淔or that we need to continue to collaborate with Parks Canada and Parks to its credit is at the table in a meaningful way.鈥�
Wrapping up his speech he took time to touch on council鈥檚 overarching priorities and urged those in attendance to consider running for office in the next municipal election slated for Oct. 16.
鈥淔or only the sixth time in our history Jasper residents have an opportunity to elect a municipal council,鈥� said Ireland. 鈥淪ome of you may covet a position, I hope you will run, some of you will have in mind someone you think will make an exceptional candidate, I hope you will nominate. Some will see others who will choose to run and will recognize potential, I hope you will offer support. All of you will recognize that a healthy community depends upon an engaged citizenry. Your next council will be as effective as you make it.鈥�
Paul Clarke
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