With a 7-2 vote, Rocky View County council agreed that taxpayers will pay for $1 million of the county’s debt.
This decision was made during a special council meeting March 12. The impromptu meeting was announced on the county website March 8 and was called so the public would still have time to comment on the proposed budget before approval, staff explained.
“Currently, the model we have used on this particular debt we hold is, developers pay for it,” Kent Robinson, manager for corporate services said to council.
“That continues to be the model from a recovery perspective but we can’t make people come in the door to pay their levies so we’re having a bit of a timing issue so as per your (council’s) strategic plan we are trying to accelerate the repayment of the debt.”
After council, Robinson said the biggest reason for the county’s $75-million debt is because of the economy.
He said “plans went sideways when the world economy went sideways in 2008/09.”
The development industry slowed considerably and a number of projects in various stages of approval did not go forward, he added.
“Obviously, if development starts to happen sooner and accelerate it’s something we don’t need for the long term,” he said of using tax revenue to pay for the debt. “But we need to supplement the levy coming in.”
During a council meeting March 5, council rescinded its wastewater bylaw with the intent of creating a more successful cost-recovery structure.
Robinson said the intent is not to give up on the levies but accelerate the repayment of the principle.
Councillor Margaret Bahcheli had concerns about the budget adjustment request, saying she didn’t think it was something council had finished talking about.
“I am cognizant we discussed conceptually on giving up on the wastewater levy and paying the debt from general tax revenue, but I didn’t think we were done with these discussions.”
Councillor Paul Mc-Lean disagreed.
“This should have been on the list three years ago,” he said. “This is a very concerted effort to pay down some of this principle.”
Councillor Al Sacuta said he would support it because the repayment via tax revenue is meant as a temporary situation and said new cost-recovery agreements should cover the remainder of the debt including this payment from taxpayers as the county collects on levies going forward.
Councillor Lois Habberfield said paying $1 million on the principle of the debt is not what she wanted but said she will support it “given the reality of the economy.”
She said it is a good plan and noted that 45 per cent of overall taxes come from non-residential properties.
“I do hope this one-off payment of $1 million won’t lead to a precedent,” said councillor Kim Magnuson who said she isn’t happy to see this coming forward.
She requested a schedule to show where the levies are coming from and when they will be coming in.
Bahcheli said she did not support it because she said five other options were brought up by council and more discussion is needed.
Council passed the adjusted budget. Magnuson and Bahcheli were opposed.
Robinson said the budget will be available on the county website by the end of the third week of March.
