Fee hikes proposed
A new report suggests that Morinville should hike its rental fees for meeting rooms by up to six times as part of a push to bring the town’s fees in line with the regional average.
Morinville council received a corporate fees review report at committee of the whole Sept. 17.
Based on it, council asked administration to bring a policy that would adjust Morinville’s planning and development, corporate and financial services, pet ownership, business license, and fire services fines and fees to reflect the median level found by the report to its regular meeting for consideration on Oct. 8.
The report found that Morinville’s fees were, in almost all cases, below the median when compared to nine area communities (including St. Albert and Sturgeon County). The report recommended the town bring its fees in line with the median rate, unless doing so would cause affordability problems, to bring in more cash, and to review its fees each budget – some of the town’s fees are eight years old.
The report found that while most of the town’s fees would need to rise $5 to $10 to reach the median, some (such as the application fee for a subdivision) would almost triple ($975 from $350).
Pet licence fees would see significant changes. Setting fees at the median would make it $20 more expensive to register a spayed/neutered cat or dog with permanent identification, but $26 cheaper for one without such ID. Non-spayed or neutered pets would cost $40 to register – $60 less than they cost now.
Council held off on plans to consider setting community service and Community Cultural Centre fees at median rates, with some councillors concerned about impacts to community groups.
Setting those fees at the median would see residents pay about six times more to rent a meeting room for four hours ($161 vs. $25) and about five times more to rent one for a day ($233 vs. $50).
Council instead asked administration to bring a plan to talk with community groups about community service and CCC fees to the Oct. 8 meeting.
Fees aren’t a big part of the town’s revenue, but bringing them up to the average would put less cost on the taxpayer while still keeping the town competitive, Mayor Barry Turner said in an interview. Still, there were some fees, particularly those for sports fields, that the town might want to keep below average.
The fee review is available in the agenda package for the Sept. 17 committee of the whole meeting on the town’s website.
Red flags over budget
Morinville will blow past its self-imposed debt limit by 2025 and won’t see a balanced tax-supported operating budget until 2030 unless it changes course, suggests a new report.
Town council got a report on its new long-range financial model last week at committee of the whole.
The model uses population growth, tax rates, and many other factors to project the state of the town’s finances over the next 30 years.
The model found that Morinville would exceed its self-imposed debt limit (which is 85 per cent of its provincially mandated limit) by $3.8 million in 2025 and $13.7 million in 2030. It would not exceed the provincial limit.
In an interview, town chief financial officer Shawna Jason said these overages were due to plans to build a new RCMP station in 2025, and a new pool and hockey arena in 2030. Town council will have to defer projects, find new funding, or change its debt policy to avoid going over.
“We’ve got a large window of time,” she added, and many of the capital costs included in the model (e.g. roundabouts and the demolition of the Ray McDonald arena) might never happen.
While the model shows that the town will run a surplus from now until 2040, that’s only because it would be using cash from utility rates to supplement taxes. The town was otherwise set to run a tax-supported operating deficit from now till 2030.
“Based on the current information Council’s goal of a balanced tax-supported operating budget within three years is unlikely to be achieved,” the report found.
Jason said the town needed to take a closer look at its tax-supported budget, adding that council could tweak tax or service levels to bring it into balance.
“It may take a few years for us to get ultimately a balanced budget on the tax side of our books.”
This model definitely raises some red flags for council, Turner said. Council will need to cut costs internally and through regional collaboration, and take a hard look at its capital plans, especially for projects like the new RCMP station.
“The challenge has been set.”
See the agenda package for the Sept. 17 committee of the whole meeting on the town’s website for this report.
East Boundary team-up
Morinville and Sturgeon County have teamed up to bring in a temporary fix to the flood-prone East Boundary Road.
Morinville council voted unanimously at a special meeting Sept. 17 to do $95,000 of grading and other roadwork on East Boundary Road between Hwy. 642 to Cardiff Road this fall in partnership with Sturgeon County.
East Boundary Road runs along Morinville’s east border with Sturgeon County. The gravel road is one of the oldest in town and often becomes impassable due to floods and ruts in the spring.
“Each spring is a disaster,” said town public works director Claude Valcourt, and the road is a regular source of complaints.
The town plans to pave the road for $6.5 million but hasn’t secured the funding to do so, council heard. Valcourt said this year Sturgeon County has agreed to have its road crews work with the town’s to improve the road’s base and drainage.
Town chief administrative officer Stephane Labonne said this fix might last two to four years depending on traffic and weather.
Councillors said this was a great example of collaboration and a way to stretch taxpayer dollars, with Coun. Sarah Hall noting that this road would likely see more traffic now that the Morinville Leisure Centre was open.
The roadwork is expected to take about three weeks.
