HomeMy WebLinkAboutRMA Impact Report Card Summary - County of NewellCOUNTY OF NEWELL - ASSESSMENT MODEL REVIEW
IMPACTS REPORT
Municipal Impacts
Based on the assessment model review scenarios provided by the Government of Alberta and financial data from the
MFIS database, RMA’s models make the following municipal predictions. Due to the limits of data provided, we are
unable to project past the first year of implementation. Because of the significant changes to the depreciation curves
under most of the models, there will be increased impacts in the future as assets age.
Scenario Tax Impacts Scenario A Scenario B Scenario C Scenario D
Total Assessment Base Loss $-812,374,539
(-19%)
$-1,024,151,055
(-24%)
$-1,046,699,317
(-24%)
$-1,318,195,689
(-31%)
M&E Assessment Base Loss (%) -27% -27% -27% -27%
LP Assessment Base Loss (%) -28% -37% -38% -49%
M&E Tax $ Loss (2019 Mill Rate) $-1,227,134 $-1,227,134 $-1,227,134 $-1,227,134
Linear Tax $ Loss (2019 Mill Rate) $-5,342,864 $-7,055,586 $-7,237,943 $-9,433,642
Percent Loss of Total Revenue -18% -22% -23% -29%
Municipal Response Options
The response options below demonstrate how significant non-residential assessment and taxation is for rural
municipalities. Even a modest reduction in oil and gas assessment may require municipalities to drastically increase tax
rates or reduce expenses. In other words, changes to assessment have significant domino effects on rural municipalities.
These illustrate hypothetical impacts that the changes may have on operations based on available data. These should
not be seen as recommendations, as they are only provided for context.
Potential Rural Municipality Response Impacts Scenario A Scenario B Scenario C Scenario D
Residential Mill Rate Increase 162.8% 205.2% 209.7% 264.1%
OR
Non-Residential Mill Rate Increase (Excluding 5:1 limits) 32.1% 44.2% 45.6% 65.2%
Tax capacity shortfall due to 5:1 ratio (includes tax capacity loss
still required to achieve 5:1) $0 $0 $0 $0
OR
Workforce Cuts to cover losses (% of total FTE’s) 90.6% 100.0% 100.0% 100.0%
FTE’s at risk 57.05 63.00 63.00 63.00
OR
Total Expense Reduction % (including capital infrastructure
investment) 22.59% 28.47% 29.10% 36.65%
OR
Time shortfall can be covered by Unallocated Reserves (months)
5 4 4 3