HomeMy WebLinkAboutLocal Improvement Tax Levy FAQ (1)
183037 RR145 (Box 130), Brooks, AB T1R 1B2 Check us out on social media
Phone: 403-362-3266
Fax: 888-361-7921
Email: administration@newellmail.ca
Web: www.countyofnewell.ab.ca
Local Improvement Tax FAQ
What is a local improvement?
Local improvements are capital construction projects that Council deems to provide more significant benefit to a specific local
area within the municipality than to the entire municipality as a whole. These projects are funded, either fully or partially,
through a tax designated as a local improvement tax. Examples of such projects encompass street paving, new sidewalks,
pathway installation, curb and gutter improvements, as well as the renewal or replacement of aging infrastructure like water
and sewer mains.
Who governs over local improvements?
The Municipal Government Act R.S.A. 2000 Chapter -26 (MGA) Sections 391 – 409 provides the legal authority for
municipalities to implement local improvements.
Who can initiate a local improvement?
Local improvement projects are typically initiated by Council, often in response to requests from residents within a specific
area or when a need has been identified. In some cases, residents may petition the municipality to consider a particular
improvement.
What is a local Improvement plan?
A municipality must prepare a formal local improvement plan when proposing a new local improvement. A local improvement
plan must describe the proposed local improvement and its location, identify the properties and person(s) who will be liable
to pay the local improvement tax, state whether the tax rate is based on each parcel of land, each unit of frontage, or each
unit of area. The plan must include the estimated cost of the local improvement, state the period over which the cost of the
local improvement will be spread, state the portion of the estimated cost of the local improvement that will be paid by the
municipality, and specify the amount of revenue raised by the local improvement tax and any other funding sources.
In estimating the cost of a local improvement the municipality would consider the actual cost of buying land if required, the
capital cost of undertaking the work, professional services, and if necessary the cost of replacing any existing debt on a facility
that is being replaced or rehabilitated, and other expenses incidental to the undertaking of the local improvement and to the
raising of revenue to pay for it.
How do property owners know a local improvement may affect their property?
When a local improvement plan has been prepared by the County, a Notice of Intention to undertake a local improvement
must be provided to the owners of all affected properties. The notice will summarize the details of the local improvement
plan.
183037 RR145 (Box 130), Brooks, AB T1R 1B2 Check us out on social media
Phone: 403-362-3266
Fax: 888-361-7921
Email: administration@newellmail.ca
Web: www.countyofnewell.ab.ca
Who pays for local improvements?
All registered property owners affected by the local improvement are responsible for the project's cost. The cost of the local
improvement is added to the registered property owner’s taxes the year after construction has been completed. A registered
property owner has the option of:
a) Paying the full amount (lump sum) of the local improvement up front or paid out in full at any time during the
specified period
b) Amortizing the payment for the set specified period
Why is paying the full amount up front less than the annual amortized charge?
In order to complete the project, the County may borrow funds and pay interest on these funds. The cost of the borrowing is
passed on to the property owners.
Is there an opportunity to object to a local improvement?
Yes, residents have the option to petition against a proposed local improvement project. If a petition objecting to the local
improvement is filed with the Chief Administrative Officer within 30 days from the notice of intent being sent and the Chief
Administrative Officer declares the petition sufficient, Council must not proceed with the local improvement. The deadline for
submitting a petition against “Lake Newell Resort Pathway” is October 16, 2023.
A petition is not a sufficient petition unless
a) It is signed by 2/3 of the owners who would be liable to pay the local improvement tax, and
b) The owners who sign the petition represent at least ½ of the value of the assessments prepared for the parcels of
land in respect of which the tax will be imposed.
Will the names of the registered property owners be provided by the County ?
The County is not able to supply the names of the affected property owners for privacy reasons. If you are circulating the
petition, you need to ensure the person signing is the registered property owner.
Do I have to pay if I did not support the local improvement project?
Once Council approves the project and construction has been completed, all property owners affected by the improvement
are required to pay the local improvement tax levy, even if they are opposed to the project.
Do I still have to pay the local improvement tax if I sell my property?
No, the local improvement tax is attached to the property and the remaining payments become the responsibility of the new
owner.
If additional information is required, contact the County Finance Department at 403-362-3266 or finance@newellmail.ca