Village of Plamondon dissolution study : a restructuring option of joining Lakeland County

20 Pages·2002·4.7 MB·English

by  Alberta. Municipal Services Branch

LOCAL Government Services Division
Municipal Services Brancli
Village of Plamondon
Dissolution Study
A restructuring option of joining
Lakeland County
January 2002
/dlbeita
MUNICIPAL AFFAIRS
Phone: (:7so) 427'-222s . Fax: ("zso) 1 o 1 6 . E Mail: [email protected]
17th Floor Commerce Place 10155 - 1 0 2 Street Edmonton, Alberta T5J 4L4. Internet: http://www.gov.ab.ca/ma/lgs
Digitized by the Internet Archive
in 2015
https://archive.org/details/villageofplamondOOalbe
Village of Plamondon Dissolution Study
Wliat happens under dissolution?
Introduction:
Dissolution occurs when a
In April 2001, the Minister of
municipality gives up its legal status as
Municipal Affairs received a letter from
an incorporated municipality under the
the village council requesting a
Municipal Government Act and
dissolution study for the Village of
becomes part of the adjacent rural
Plamondon. This triggered action
municipality.
under section 130 of the Municipal
Government Act, which requires the
The Village of Plamondon is an
Minister of Municipal Affairs to
incorporated municipality. If the
undertake a study if he receives such
village dissolves, it would become a
a request.
hamlet in Lakeland County. The
county would then become
What is restructuring?
responsible for municipal governance,
administration, and the provision of all
There are two options that
municipal services to the residents.
municipalities generally consider when
wishing to discuss restructuring. The
most common option is to request the What is a restructuring study?
Minister to undertake a dissolution
The restructuring study process
study. Dissolution is the process of
involves researching and writing a
restructuring a municipality so that it
report for the residents of Plamondon
can join with the adjacent municipality.
and the Minister of Municipal Affairs
This option is appropriate when one
about the expected effects of
municipality has the financial and
restructuring the Village of
administrative resources to absorb the
Plamondon.
other.
The study looks at several
Sometimes municipalities prefer to
questions including:
think of joining with another
• What is the current service and
municipality as an amalgamation. The
financial situation in the village?
amalgamation process is a second
option and is most appropriate when • How does Plamondon's base
financial information compare to
two municipalities of similar size and
that of 22 other villages with
scope wish to create a new
municipality. populations between 301 and
400?
• How does the current situation
In this instance, the village
compare to what residents could
council's request for a dissolution
study is appropriate. Plamondon expect if Plamondon joins
Lakeland County?
could then discuss joining with the
• What would the estimated taxes
county while benefiting from the
strengths that the county has to offer. have been if t he village had been
dissolved into the county in 2001?
January 2002 1 Alberta Municipal Affairs
Village of Plamondon Dissolution Study
What is a restructuring study not The results of the vote and the
about? information in the study will help the
Minister determine whether to
The restructuring study is not an
recommend to the Provincial Cabinet
assessment of the village council or
that Plamondon dissolves and joins
administration. As well, this study is
with Lakeland County.
about Plamondon the municipality, not
Plamondon the community. The
community will exist whether What is the current situation in the
Plamondon is a village or a hamlet. Village of Plamondon?
Residents will continue to be "from Plamondon incorporated as a
Plamondon" whether it is an village on January 1, 1965. Today the
incorporated municipality or part of the
village is a focal point for community
county.
activities and a service centre for the
How was information gathered for residents and the surrounding rural
the study? population. Community activity
centres include an Agri-Plex, a
Information for the study came
from: municipal library, sports grounds, a
community hall, and a curling rink.
• The county and village councils
The village has a healthy commercial
and administrations;
service sector including such
• The provincial government; and
businesses as a hotel, a motel,
• Local service agencies.
restaurants, retail stores, a post office,
banking institutions, and repair shops.
As part of the process. Municipal
Affairs staff attended a public meeting
The village population gradually
on May 15, 2001 to hear residents
increased over the past 20 years.
concerns, and to provide information
More recently, the population
on the restructuring study process.
increased from 259 in 1997 to its
current level of 336. To some extent,
What happens when the study is
the recent growth is due to new
completed?
employment and business
Residents have received the opportunities created by increased
resource based industrial activity in
following items:
the area. This new investment in
• A copy of the study;
homes and businesses has had a
• A notice of the date, time and
location of a public meeting when positive influence on the village's
assessment base.
Municipal Affairs staff will present
the completed study and answer
Financial
residents' questions ; a nd
• A notice of "Vote on a Bylaw or Property assessment is the basis
Question" that provides the date,
time and location of the vote on for determining each property owner's
share of the village tax burden.
the question of dissolution. Positive assessment growth means a
January 2002 Alberta Municipal Affairs
Village of Plamondon Dissolution Study
larger number of properties share the from sales and user fees. The
remaining $137,852 came from other
tax burden. The village's assessment
base grew from $8,921,045 in 1997 to sources such as provincial grants,
$10,764,583 in 2000. local government transfers and fines.
During the same period, the village
Residential property assessment had operating expenditures of
grew by 24 percent from $6,278,602 in $394,432, dispersed as follows:
1997, to $7,778,593 in 2000. Non- • 37 percent to environmental
residential assessment grew by 13 services, such as water, sewer
percent during the same period. and waste management costs;
• 28 percent to transportation
Currently, the village's assessment
base is 72 percent residential and 28 services, including road
percent non-residential. This means maintenance, sidewalks and
street lighting;
residential property is picking up 72
percent of the tax burden and non- • 16 percent to council and
residential property 28 percent. administrative costs;
• 13 percent to recreation and
Since 1994, the village has library costs; and
managed to keep a low municipal tax
• 6 percent to protective services.
rate relative to other villages of similar Family and Community Support
size. A lower than average tax rate is Services and planning.
a positive factor for the village. The
village will likely continue to grow and
attract new residents and businesses In 2000, the village's revenues
exceeded its expenditures, leaving a
if t his trend continues.
small surplus of $2,514 at year-end.
The financial statements show the
The village has higher-than-
village had a positive financial position
average total operating expenditures
with cash and other financial assets of
per person compared with other
$291,270 and liabilities of $263,334 as
villages with similar populations. This
of December 31, 2000.
trend of increased expenditures
parallels the village's population
The village provides a range of
growth since 1997.
municipal services to its residents
typical of other villages, such as water,
The village's current total debt load
sewer, ambulance, fire protection and
is well within the regulated limits. As
road maintenance. The main sources
of December 31, 2000, the village had
of revenue to pay for these services
three outstanding debentures totaling
come from property taxes and user
$104,814. In 1979, the village
fees. The December 31, 2000,
borrowed $58,333 from the Alberta
financial statements show the village
Municipal Finance Corporation
had operating revenues of $396,946.
(AMFC) to pay for renovations to its
Of the total, $153,175 came from
water treatment plant. The village
property taxes and $106,189 came
borrowed $68,161 from AMFC in 1995
January 2002 Alberta Municipal Affairs
Village of Plamondon Dissolution Study
to pay for a new raw water supply line systems. The village may have to
and in 2000, borrowed $29,212 from suddenly increase property tax or
the Credit Union to pay for the Arena utility rates or borrow money to pay for
Avenue paving and Old Trail Avenue services if t he current trend continues.
upgrading projects.
Infrastructure
The village's annual debt servicing
payment ($19,926) comes from a The village's above-ground
infrastructure such as the road system
special tax levy (2.17 mills) on all
appears to be well maintained and in
properties in the village. For 2000, the
reasonable condition. In early 1970,
special tax levy raised ($5,511) more
the village installed a water and sewer
than was required to service the
system. Alberta Environment advises
village debt. As this is a special
that there are approvals for both
purpose tax levy, the mill rate should
systems and that the licences are
generate only the amount required to
current. The licence to operate the
service the debt. In 2000, it would
water system is renewable in 2004
have been appropriate for the village
to lower the mill rate to 1.7 mills to and the sewer system in 2008. The
condition of the underground part of
service the debt. The village did not
the utility systems is unknown as there
generate any additional debt in 2001 .
is no recent engineering assessment.
The village began the year 2000
Over the last four years, the
with operating fund reserves of
revenue generated from the combined
$57,364 and $106,692 in capital
water and sewer utility fees was
reserves. During 2000, the village
sufficient to cover the average
used its capital reserves to pay for
operating cost of the service. During
repairs to the sewage lagoon and
the period, the average operating
realignment of the creek, cleaning of
revenues were $102,684 and the
the water reservoir and the purchase
average expenditures were $95,067.
of a packer. Capital reserves of
The annual debt repayment on the
$36,695 were used to pay for these
water system ($15,382) comes from a
projects. At December 31, 2000, the
special tax levy on all village
village had capital reserves remaining
of $69,977. The village's capital properties.
reserves have decreased by 60
The village does not provide
percent since 1998 and are below the
average of other villages with similar curbside pick-up of household \Aaste.
Residents deliver their waste to the
populations.
landfill for disposal. The village
operated the landfill site and Lakeland
A municipality needs reserves to
pay for its expenses between tax County paid a per capita fee for its
residents to use the site before July
collection dates and to better plan for
2001. In July of 2001, the village and
the future repair or replacement of
things like roads, and water and sewer the county signed a new agreement.
The county now operates the site and
January 2002 4 Alberta Municipal Affairs
Village of Plamondon Dissolution Study
the village pays a per capita fee to the populations was $25,000, while the
county to use the site.
village's assessment per person was
$34,800.
The village maintains a positive
working relationship with its neighbor Total reserves
Lakeland County. The two
municipalities cost share some From 1995 to 1999, the village's
common services that benefit both total reserves were above the average
of other municipalities with similar
county and village residents such as
populations. However, in 2000, the
fire fighting, waste management and
recreation. village's total reserves fell below the
average. In 2000, the average
financial reserves for municipalities
Comparative analysis:
with similar populations were $84,000,
Net municipal tax rate while the village's reserves were 11
percent below average at $75,000.
Since 1994, the village's net
municipal tax rate was slightly lower
Long term municipal debt per
than the average compared with other
municipalities with similar populations capita
(301 - 400). In 2000, the average net
Since 1995, the village's long-term
municipal tax rate for municipalities municipal debt per person was lower
with similar populations was 14.8 mills, than the average of other
municipalities with similar populations.
while the village's rate was 12 percent
lower at 13 mills. For 2000, the average municipal debt
per person for municipalities with
Residential tax rate similar populations was $418, while
the village's was $311, or 26 percent
Since 1995, the village's residential lower than the average.
tax rate was lower than the average of
other municipalities with similar
Total operating expenditures per
populations. In 2000, the average
residential tax rate for municipalities capita
with similar populations was 20.9 mills,
The village's total operating
expenditures per person were higher
while the village's residential tax rate
was 20.2 mills. than the average of other
municipalities with similar populations
since 1994. For 2000, the average
Assessment per capita
annual operating expenditures per
Since 1995, the village's property person for municipalities with similar
assessment per person was higher
populations were $902 while the
than the average of other
village's expenditures per person were
municipalities with similar populations.
In 2000, the average assessment per $1,173.
person for municipalities with similar
January 2002 Alberta Municipal Affairs
Village of Plamondon Dissolution Study
Expected changes if Plamondon dissolves and joins Lakeland County
If P lamondon dissolves, it w ould become a hamlet in Lakeland County. The boundaries of the
Village of Plamondon would become the boundaries of the hamlet of Plamondon in Lakeland
County.
Tables 1 and 2 at the end of the report show that residents would pay less tax if P lamondon
became a hamlet in Lakeland County. However, residents should be aware that the
dissolution of the village would change how some village functions are handled and how
some services are delivered. The following chart shows what the current situation is in the
village and what esidents could expect if t he village dissolves and joins Lakeland County.
Residents should consider all this information when taking a position on the dissolution of the
village.
Services Current situation What residents can expect if the village
joins Lakeland County
Council and There are four electoral divisions in the
Village residents elect a five-
Councillors member council at large. This county, and each county councillor
means that each councillor represents the residents of a particular
represents all the residents of the geographic area. All county residents vote to
village and not the residents of a elect the reeve at large. The whole council
specific area. At the annual makes decisions for the county. If t he village
organizational meeting, council joins with the county, it w ould become part of
appoints the mayor. The whole electoral division 1. Blaise Ryan, county
council makes decisions for the councillor for division 1 , w ould represent the
village. residents until the next municipal election.
Council The village holds regular council The county holds regular council meetings in
meetings meetings in Plamondon once a Lac La Biche on the second and fourth
month. Council meetings are Wednesday of the month typically in the late
open to the public at any time to afternoon. Council meetings are open to the
listen and observe. If m embers
public at any time to listen and observe. If a
of the public want to have their member of the public wishes to have their
concerns heard, they would concerns heard by council, they would
normaly make prior normally make prior arrangements by
arrangements by contacting a contacting their councillor or the
councillor or the administration to administration to be on the agenda.
be on the agenda.
Information Village residents can phone, go County residents either phone (local call) or
requests and to the village office, or contact a go to the county office in Lac La Biche to
emergency councillor to obtain information. obtain information. Village residents would
numbers
be provided with an information package
outlining the services the county provides
and how to contact the councillors and
administration If t he village joins the county.
January 2002 6 Alberta Municipal Affairs
Village of Plamondon Dissolution Study
Services Current situation What residents can expect if t he village
joins Lakeland County
Employees The village has 3 employees, a The county has 31 full-time employees who
chief administrative officer, a provide the administrative and municipal
public works supervisor, and a services to county residents. The county
part time clerical person. In would coordinate the delivery of
addition, the village has two administrative functions and municipal
contract employees. One services from the county office in Lac La
contractor is the water treatment Biche. The current public works supervisor
plant operator and the other (Gordon Plamondon) would transfer to the
provides bookkeeping services county at the time of dissolution. The village
on a part-time basis. The will provide notice of termination to the
employees provide the remaining employees and provide them with
administrative functions and a severance package similar to the Alberta
municipal services for the village.
Public Service's. The county could then offer
The village has no plans to contract employment to the chief
increase its staff. administrative officer and the administrative
support person for a three-month transitional
period after the date of dissolution.
Village office The county administration is located in the
The village office is the residents'
contact point for local county office in Lac La Biche where it
government services and houses coordinates all municipal services. The
the village records and county would keep the village office open
administration. one day a week for three months after the
date of dissolution to facilitate the transition.
Tax and Village residents can pay utility County residents pay tax accounts by mail or
utility bills and property tax by mail or by delivering payment to the county office in
payments by delivering payments to the Lac La Biche. Residents could mail
village office. payments or deliver the payment to the
county office in Lac La Biche. As an
alternative, the county could try to arrange
for residents to pay their tax and utility
accounts at a local bank.
Tax penalty Village residents must pay their County residents must pay their taxes no
date taxes no later than August 31 to later than November 15 to avoid penalty.
avoid penalty.
Property tax The village had current property Any taxes owing to the village would transfer
arrears
taxes outstanding of $25,276 on to the county. The county would also
December 31, 2000. The village proceed under the tax recovery process to
is proceeding with the tax collect the amount owing, or secure the title
recovery process to collect the and offer the property for sale.
outstanding amounts.
January 2002 7 Alberta Municipal Affairs
Village of Plamondon Dissolution Study
Services Current situation What residents can expect if t he village
joins Lakeland County
Financial The village had financial assets If t he village was to restructure, all assets
assets and of $291 ,270 and total liabilities
and liabilities become part of the county's
liabilities assets and liabilities. The Order In Council
including long-term debt of
$263,334 on December 31 , dissolving the village would contain a
2000. provision that the county would have to place
any surplus funds in a separate reserve. The
county would then use the funds to benefit
the former village.
Village debt At December 31 , 2 000, the Any debt owed by the village at the time of
village had three tax-supported restructuring would transfer to the county.
debentures. The total The surpluses that the village would have on
outstanding principal on the the date of restructuring will roughly equal
the debt. However, the county plans to
village's debt was $104,818. The
annual payment on the village continue that portion of the special levy
debt is $19,926 and comes from required to pay the annual debt for the
renovations on the water treatment plant and
a special "debt charges" tax levy
on all properties within the the new raw water line. The debt for the
village. The debt charges tax paving projects would be paid off and any
levy should reflect the cost of remaining funds will be used for projects
debt servicing. such as improvements to 101 Avenue.
Physical The village owns land, buildings All land, buildings and equipment transfer to
assets and equipment for community the county at the time of restructuring. The
use, resale and the delivery of county could sell those items not required by
municipal services. the county. The Order In Council dissolving
the village would contain a provision that
surplus funds resulting from the sale of land,
buildings or equipment of the former village
are held in a separate reserve by the county.
The county would then use the funds to
benefit the former village. The provision
would apply only to land, buildings and
equipment owned by the former village and
sold by the county before December 31 ,
2007.
Fire-fighting The Plamondon and district The fire-fighting equipment would remain in
services volunteer fire department the village and the Plamondon and district
provides fire-fighting services to volunteer fire department would continue to
the residents. The village has an provide fire-fighting services if t he village
dgiccJiiicjru Willi ine uouniy lo juiiib Willi Liit^ uuuiuy. 1 1 l o uuuiiiy wuuiu liicii
provide services to the outlying provide the funding necessary to operate the
area. fire department.
January 2002 8 Alberta Municipal Affairs