Mythbusters

Mythbusters

Mythbusters is focused on addressing rumours and misinformation about Municipal Government in the Crowsnest Pass.

MILL RATE

Myth: Did you see an increase in your property taxes this year?  Unfortunately, you can expect your taxes to continue to go up a rate greater than they did this year.

Fact:  Council passed a minus 8.3% reduction on the mill rate in 2024.   The Municipal tax rate decreased, the overall dollar amount may have either decreased or increased depending on the value of your assessment.  The school tax mill rate also increased resulting in bigger totals.

It is inaccurate to say that people can expect taxes to continue to grow at a rate greater than this year because assessment is not completed until February of 2025 and the budget is still underway.   

Myth:  Your 2025 Property Taxes: 1.8% Mill Rate Increase + 9% Home Valuation Increase = 11% Increase in Property Taxes

Fact:  The Millrate has not been set, discussion on this starts to occur during the budget process and is officially passed in the spring with the Mill Rate Bylaw, therefore, the 1.8% is not at all accurate.  This number came from the 2025 projection in the 2024 Budget based on what known increases would be in 2025, and what shortfall there would be.  This is refined each year during the budget process.

Further, the Assessment numbers are set in February of 2025, we have no idea until the assessor provides it to the Municipality.   With saying that, the market assessment has continued to rise and so it is likely to see property values increase in 2025.

Myth:  Residential property taxes collected increased by 35.9% between 2021 to 2024 even though the total number of residential properties only increased by 2.25%.  This means that taxes raised 19.5% more than inflation and new properties combined.

Fact:  The overall residential property taxes collected did increase by 35.9% however this is a combination of inflation and growth.  While there may have only been 91 new properties created through subdivision, there have been significant new homes built that would have been previously taxed at the minimum rate due to being a vacant lot.  In that same time period, 181 new home permits were issued, not to mention any additions or renovations to existing homes.

Furthermore, inflation is an average over all sectors.  Some expenses, such as power or pipe materials have seen drastically higher increases beyond the 13.83% inflation.

Myth: The mill rate in Crowsnest Pass is higher than all other communities.

Fact:  The Crowsnest Pass is by no means the highest or the lowest.  Our nearest urban neighbour, Pincher Creek, has a mill rate that is 1.6 mills higher than Crowsnest Pass.

Furthermore, comparison can't be made to rural Alberta communities as their rates are often offset by significant linear assessments along with the fact that they do not typically provide the same services that an urban community does.  In addition, comparisons cannot be made to BC communities, as they have an entirely different tax structure and government structure on funding with the Province of BC.

Myth: The mill rate has risen significantly every year.

Fact: Typically the Municipality aims for an overall mill rate increase of 2% to try to stay on par or less than inflation.  Furthermore, the Municipal mill rate today is actually less than it was in 2018.  Currently it is 7.1466 and was 7.235673 in 2018.

Myth: The Municipality wrongly took an additional $1.1 million from taxpayers in 2023.

Fact: Budget 2023 was approved with an anticipated mill rate increase of 1.8%.  In the spring when the mill rate was approved, the assessment had increased, from both growth and inflation, and this resulted in an additional $1.1 million in taxes collected.  Council made a decision to moved forward with some initiatives that were deferred during budget deliberations, such as:

• $500,000 to reserves for future large expenditures
• $250,000 towards a trails master plan, the number one priority recommended from the Parks and Recreation Advisory Committee
• $200,000 towards pothole repairs, one of the biggest complaints during the summer
• $70,000 towards the environmental monitoring of landfills, a responsibility the Municipality has, and a requirement to allow continued development is some areas of the community
• $22,000 towards the Roxy, to help get a performing arts space in the community
• $64,000 towards the library, to replace the deteriorating stairs and replace the worn carpet in the basement
• $30,000 towards beautifying the community

TAXES

Myth: I pay all of these taxes and don't receive anything in return

Fact:  The average home price in the Municipality for the 2024 taxation year was $330,548.  This resulted in a total tax of $3,126.35.  Of this, 24.4% goes directly to the Province for the Alberta School Foundation Fund (Education Property Tax) or $764.06.  Some other highlights of where taxes go are:

• $34.25 to the Crowsnest Pass Pool
• $111.82 to the Pass Powderkeg Ski Hill
• $30.88 to the Crowsnest Library
• $31.94 to the Peaks to Pines Lodge
• $31.40 to various community groups as grants
• $83.50 to Fire Rescue
• $32.94 to the RCMP
• $379.68 to road maintenance
• $135.36 to reserves

DEBT

Myth: The Municipality is borrowing beyond it's means.

Fact: The Province sets limits that each Municipality is allowed to borrow.  At the end of 2023, the Municipality could have a total debt limit of $30,118,085 with a debt servicing limit of $5,019,681.  The actuals at the end of 2023 were $9,381,822 in debt and $888,787 in debt servicing.  There has been an additional $5,700,000 in debt approved in 2024 that will begin servicing in 2025 and $1,400,000 that will be begin serving in 2027.

Myth: The Municipality will have over $500,000 in interest and $1,340,000 in minimum payments by the end of 2024.

Fact: The forecasted interest payment for 2024 is $326,364 and principal payment is $562,423.  These payments are built into the total 2024 Budget.

Myth: The Municipality is not paying down debt.

Fact: The Municipality borrows from the Province and takes advantage of better borrowing terms, utilizing the market advantage that the Province receives.  Part of the loan agreement includes fixed conditions for the entire loan.  The payment amount and interest rates are fixed, and therefore additional payments cannot be made to accelerate repayment terms.

Myth: The Municipality is borrowing for projects that are unneeded and excessive.

Fact: The Municipality is completing projects that, had they not have been undertaken, would have significant reductions in services and/or increased operating costs.  

• Sports Complex Roof - without repairs, water leaks would have lead to significant damage inside the building
• MDM Roof - without repairs, water leaks would have lead to significant damage inside the building
• MDM Boiler - without replacement, there would be no heating in the building
• Pool Replacement - without replacement of the pool, the facility would have had to be closed permanently
• Frank Wastewater Treatment Plant - the plant was in needed of significant upgrades and renewals as it had not seen any improvements since it was built in the mid-1980's.  If the plant would have failed or if the enhanced treatment was not added, there was significant risk that the communities of Coleman, Blairmore and Frank would no longer have had sewer.
• Sports Complex Ice Plant - the plant was at the end of its life and we could not risk a tragedy like what happened in Fernie.  Without the replacement, there would no longer be ice surfaces in the community.
• Fire Ladder Truck - one of the fire engines was in need of replacement as it was beyond the allowable service life.  Without the engine, one of the firehalls would have been closed.  Additionally, the fire engine was upgraded to a ladder truck to allow for suppression of fires from above, a far more efficient method, and hence provided an enhancement to the community.
• Fire Engine - another of the fire engines was in need of replacement as it was beyond the allowable service life.  Without the engine, one of the firehalls would have been closed. 
• Bellevue Mainstreet - underground infrastructure was in need of replacement, in addition with the huge success of Downtown Coleman, the streetscaping was included to support the businesses and draw additional people into the area to revitalize the mainstreet.  This was done in conjunction with consulting with leading economic development professionals on how to get people back into downtowns.
• Bellevue Fire Pump and Main Upgrade - the Municipality completed an Infrastructure Master Plan in 2023 that included all the water, wastewater and storm systems in the community.  The number one priority is that the Bellevue water system had inadequate water flows for fire protection.  By completing this project, the community of Bellevue will be within acceptable standards for fire flows.
• Snow Cat - the unit was at the end of the service life.  Without replacing, the season opening would have significant delays, along with closures throughout the season when the other snow cat was down for maintenance.

Myth: The Municipality is borrowing for luxury items that depreciate over time.

Fact:  The way the Municipality is required to report on its assets, they all depreciate over time and are either retired and replaced or renewed with investments.  Additionally, one of the municipal indicators that Municipal Affairs utilizes is that a municipalities total assets have not depreciated more than 40% of their total value.  The Municipality has fallen below this threshold a few times over the last 10 years and the only reason that it has come back above is some of the projects listed above.

Myth: The Municipality is unnecessarily and excessively replacing fleet.

Fact:  The Municipal fleet had been neglected for decades with little replacement.  Over the last 10 years, significant efforts have been made to improve the fleet into acceptable standards.  An industry standard has been adopted that typically, light duty units are rotated on a 10 year lifecycle and heavy duty on a 20 year lifecycle, although there are some exceptions.  The significant amount of investment in 2024 includes a fire engine ($1,400,000) and a snow cat ($500,000).  Also, most of the fleet replacement utilizes a Provincial grant except for large purchases such as the two aforementioned.

DEFICIT

Myth:  The Municipality is running massive deficits each year.

Fact:  Unlike the Provincial and Federal governments, the Municipality is not allowed to run deficits.  In the event that a deficit was to occur, the MGA outlines exactly how this must be handled.  With saying that though, the Municipality has continuously run at least some form of surplus each year.  Any surpluses are then transferred to reserves each year.

Myth:  The Municipality is grossly overbudget year after year.

Fact:  The Municipality is required to pass two balanced budgets each year, an Operating and a Capital, and require funding source to be identified.  The Municipality has continuously been under budget each year on Operating.  Some capital projects have run over budget due to increasing costs, however these overruns are covered with additional funds being approved by Council.

GROWTH

Myth:  The community isn't growing.

Fact: The Municipality has seen an influx of new residents.  The population as of 2023 is now 6,007 permanent residents.  It has been increasing since 2017 after a nearly 30 year decline and then a 10 year of nearly flatline population.  Taking into account our shadow population (secondary residents) of 2,416 residents, the population based served is approximately 8,423 people.

Furthermore, we are seeing that this is a highly attractive place to relocate.  It has become quite desirable to live and this is one of the reasons we are seeing housing prices going up, as it is supply and demand, and the demand is high.  There has been 1,122 land title changes between 2021 to 2023.

Myth:  There are no homes being built here.  Homes are being built everywhere else.

Fact:  This is simply not true.  The Municipality is leading across the region on new home permits.

SERVICES

Myth:  I receive nothing for my tax dollars.

Fact:  Each property contributes to services that are provided in the community.  43% of the budget is funded by property taxes.  This goes towards snow clearing, fire, police, library, recreation, trails, playgrounds, community groups and so much more.  While each resident may not use every service, they are available and what makes this such a great community to live.

Myth:  The pool and ski hill cost too much to run.

Fact:  Like most community services, they operate at a loss.  They are run to provide recreational opportunities to all the residents, not only a select few that could afford the rates if it was a fully cost recoverable operation.  These facilities, and many others, make this a community of choice, especially for families that are looking at recreational opportunities for their kids.

Furthermore, the major cost of these facilities are staffing and utilities.  Staffing numbers are governed by requirements such as number of lifeguards on deck vs swimmers.  Utilities can only be reduced if the facility is closed. Efforts are already made for more energy efficiency such as conversion of the ski hill lighting to LED.

Myth:  Our recycling is crappy, especially compared to our neighbours.

Fact:  The Municipality's recycling bins, along with the recycling in Cowley, Pincher Creek and the MD of Pincher Creek is handled by the Crowsnest Pass Pincher Creek Regional Landfill.  The Landfill only has buyers for cardboard, plastics and tin cans.  Glass and paper are not collected as they have not been able to secure buyers that would even cover the truck costs for these materials.  

PUBLIC PARTICIPATION

Myth:  The Municipality is not following the MGA or the Public Participation Policy.

Fact:  The Municipality adheres to the MGA (Municipal Government Act) for all it's legislative requirements on public participation and engagement.  Furthermore, the Public Participation Policy is in place to enable Council to determine when they would like to hold enhanced citizen engagement on an issue when it is not legislatively required, it can not replace the legislative requirements of the MGA or other statutes. 

Myth:  The Municipality is censoring citizens by restricting how often they can speak on a topic at a Council meeting.

Fact:  There is no legislative requirement to allow citizens to speak at a Council meeting outside of a public hearing, however, Council wants to hear from the citizens of Crowsnest Pass and has included an opportunity for Public Input at each Council meeting for residents to raise issues.  This is not a typical allowance in other communities. 

That being said, because meetings regularly exceed 3 hours, Council has determined that it is not productive to hear the same item at multiple meetings, as the information has already been communicated to Council and it is Council's discretion how they wish to move forward.

Council is required to pass a Procedural Bylaw under the MGA.  The purpose of this bylaw is to pass rules to govern the how Council meetings are conducted, passing a Procedural Bylaw is not a violation of the Canadian Charter as has been alleged.

Myth:  The Municipality can't set the protocol for Council meeting decorum.

Fact:  While Council meetings are open to the public, it is Council's right to set the decorum that citizens must follow and this is outlined with the Procedure Bylaw.  This includes cell phones being silenced, talking during the meeting, and no recording of the meetings.  Anyone who causes a disturbance to the meeting will be asked to leave.  The Municipality is also a workplace and must ensure we are adhering to Occupational Health and Safety requirements as it relates to harassment. 

Myth:  The Municipality didn't consult anyone about the Bellevue Mainstreet project and should have had more public participation.

Fact:  The Municipality held an open house to present the conceptual design and received input from numerous people.  The vast majority of those who took the time to attend overwhelmingly supported the concept.  The major concern that was raised was the need for additional parking and as a result, the addition of a 60 car parking lot was included on the west end of Mainstreet.

Myth:  The Municipality didn't ask me my position on that topic.

Fact:  Council is elected to represent the citizens of the community.  They constantly balance alternatives and look to make decisions that they feel are in the best interest of the community as a whole.  They do not have staff, budget nor time to have resident participation on all decisions, beyond what is legislatively required.

WAGES

Myth: The CAO makes more than the Prime Minister.  It is over $450,000.

Fact:  The CAO salary for 2023 was $205,984.  This is actually below average from the Alberta Municipalities CAO salary survey of similar sized communities.  The average is $216,000 for 2024.

Myth: There was a 57% increase in CAO Staff Wages, Salaries and Benefits since 2022. They have increased to $544,522 this year from $347,327 in 2022. 

Fact:  These numbers are artificially inflated by taking 2022 actuals, where the department was under budget and comparing to the 2024 budget.  This department was under budget because of an unfilled position.  There are 3 full-time positions and one part-time position within this department.

The accurate number for the 2022 budget is $476,533, so 14% over 3 years, 2022, 2023, and 2024, not 57%.  14% increase accounts for negotiated increases, new benefit plan and adding hours for a unionized staff person who helps host community events.

Myth:  There was a 37% increase in Finance Staff Wages, Salaries, and Benefits since 2022.  They have increased to $704,335 this year from $514,907 in 2022. 

Fact:  These numbers are artificially inflated by taking 2022 actuals, where we were under budget and comparing to the 2024 budget.  This department was under budget due to an unfilled position.   There are 6 full-time positions and one part-time position within this department.

The accurate number for the 2022 budget is $635,588, so 10% over 3 years, 2022, 2023, and 2024, not 37%.  10% increase is attributed to negotiated increases, COLA, and a new benefit plan.

Myth:  There has been no additional staff hired to these departments to account for these increases.

Fact:  There were two positions added to the budget in 2022, however they were unfilled in the budget year and therefore the actuals showed significantly less than the budget.

Myth:  There was a 64% increase to Council Wages, Salaries and Benefits since 2022.  They have increased to $299,749 this year from $183,305 in 2022.

Fact:  In 2023 Council wages were under budget ($247,412) and are trending to be under budget for 2024 as well.  Budgeting for Council requires estimating the number of meetings and how long the meetings will be, which can result in being under budget if less meetings are held.   

Further, there was a wage adjustment in these years because salary surveys indicated the Municipality was significantly under market with Council remuneration, and that was brought more into meeting the market.  Council also gets COLA which matches union negotiations and the same benefit plan.

Lastly, there was a dip in Council remuneration through Covid as less meetings were held and thus less remuneration paid.