Mayor Richard Ireland emphasized that if the province had not promised to provide financial stabilization funding, council would have been forced to review and likely amend the budget.
Municipal council won’t amend its 2025 budget due to the Alberta government helping offset municipal revenue losses following the 2024 wildfire.
On Tuesday (May 13), committee of the whole directed administration to bring forward the 2025 tax rate bylaw reflecting the approved 2025 budget.
Mayor Richard Ireland emphasized that if the provincial government had not promised to provide financial stabilization funding, council would have been forced to review and likely amend the budget.
“Fortunately, the province did step up as we had hoped and anticipated that they might, and so now with this report, it is clear that the loss of revenue is disproportionate to the savings that we could achieve for the community,” Ireland said.
The 2025 budget, which includes a $11,843,321 net municipal tax requirement and calls for a 4.9 per cent tax increase, was passed under the assumption that the provincial government would provide financial assistance.
Because the municipality’s taxable assessment would have been $335 million higher in 2025 if not for the properties destroyed in the fire, the municipality is estimated to have lost $2.8 million in property tax revenue this year.
While the Alberta government did not provide interim housing due to intergovernmental disputes over housing density, it has pledged $8 million for tax relief, a transit service to Hinton and municipal revenue stabilization.
The conditional grant agreement stipulates the provincial government will reimburse the municipality for 90 per cent of its actual annual revenue losses, with the municipality covering the remaining 10 per cent. The municipal contribution would be covered using reserves.
On March 25, the Jasper Park Chamber of Commerce (JPCC) voiced concerns to committee about the 2025 budget and requested that council consider reducing the budget to help alleviate the tax burden on businesses.
“The economic impact of the fire has been severe and will continue to be severe,” said JPCC executive director Paul Butler at that meeting. “Businesses in Jasper are being forced to reforecast their budgets in recognition of those realities. The municipal organization should do the same.”
Based on the $2.8-million property tax loss, the provincial and municipal contributions would be $2.52 million and $280,000, respectively.
If the municipal tax levy was reduced by the entire 2025 increase, which was $553,559, the province would contribute just over $2 million, and the municipality would cover the remaining $224,644.
CAO Bill Given advised this would save Jasper ratepayers only $55,356.
In addition, damaged or destroyed properties have already had their assessments adjusted downward, and the provincial tax relief program will mitigate the increase for some ratepayers. Around $698,000 in tax credits are being held on property tax accounts.
Coun. Ralph Melnyk noted that cutting the budget would not result in significant savings for taxpayers because of the significant contribution from the provincial government. He also emphasized the need to provide services for accommodating visitors and facilitating the rebuild.
“I’m not comfortable with looking at making a major reduction for the sake of saving $55,000 at the end of the day, given the fact we’re getting this significant provincial contribution,” Melnyk said.
Coun. Wendy Hall added this issue spoke to the need for more municipal revenue sources, whether that was expanding paid parking or asking Parks Canada for a portion of gate fees.
The Local Journalism Initiative is a federal program which supports the creation of original civic journalism that covers the diverse needs of under-served communities across Canada. Content is available to media organizations through a Creative Commons license. The Jasper Local uses the LJI to access Jasper-based reporting to better serve its readers and is grateful to The Fitzhugh’s Mr. Shokeir for his coverage.
