Presentation to Fort Nelson Chamber of Commerce and to a Public Meeting Proposal for a Restructure S

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Presentation to Fort Nelson Chamber of
Commerceand to a Public MeetingProposal for a
Restructure StudyJune 28, 2006
Northern Rockies Regional District and Town of
Fort Nelson
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Precedents for a Regional Municipality
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The Dispersion of the Oil and Gas tax base
Fort Nelson
In the Province NEBC 94 of forestry is
incorporated
Only 8 of Oil and Gas assets in NEBC are
incorporated
Fort St John
Taylor
Hudsons Hope
Dawson Creek
Chetwynd
Pouce Coupe
Tumbler Ridge
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Accessing the Oil Gas Tax base by benefiting
areas 1967-2005
690 km
Peace River Liard Regional District
Fort Nelson
600 km
BRITISH COLUMBIA
ALBERTA
500 km
400 km
300 km
Hudsons Hope
200 km
Tumbler Ridge
100 km
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BCs first Resource Municipality The Village of
Fort Nelson - 1971
Citizens Proposed District Municipality

Canfor BCR Industrial Park Duke Energy Gas Plant
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Building a community by benefiting area Fort
Nelson 1971 - 1986
Town Services
Town Planning
Emergency Measures
Animal Control Bylaw Enforcement
General Government Services
Street System Maintenance
Street System Capital Infrastructure
Fire Protection
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Building a community by benefiting area Fort
Nelson 1971 - 1986
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Building a community by benefiting area Fort
Nelson 1971 - 1986
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Building a community by benefiting area Fort
Nelson 1971 - 1986
Recreation Area

• Library

• Theatre

• Cemetery

• Aquatic Centre

• Recreation Centre

• Neighborhood Parks
• Ball Diamonds

• Mosquito Control

• Golf Course

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Building a community by benefiting area Fort
Nelson 1971 - 1986
Original General Government Services Area
To offset the loss of machinery equipment
Town Road Operational Costs
Towns General Administration Costs
Portion of Fire Protection Costs
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Building a community by benefiting area Fort
Nelson 1971 - 1986
Electoral Area B
Electoral Area A
Expanded General Government Services Area
All of Electoral Area A
Excluded area includes Rural residential, BCR
Industrial Park, and all Forestry operations.
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Building a community by benefiting area Fort
Nelson 1971 - 1986
Electoral Area B
Electoral Area A
Functions Utilizing the Entire Tax Base

• Legislative Administrative

• Grants to Community Organizations

• RD Weed Control

• RD Development Services
• (Regional Planning)

• Airport

• Museum

• Recreation Grant-in-Aid

• Solid Waste Disposal

• Economic Development Tourism

• Regional Parks

• Recreation Programs

• Community Services

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Benefiting area success Loss of local autonomy
Peace River Liard Regional District
450km
Hudsons Hope
PRRD Head Office
Tumbler Ridge
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Creation of the Fort Nelson-Liard Regional
District in 1987
1987
FORT NELSON-LIARD REGIONAL DISTRICT

• Improved local autonomy
• Shared administration operations
• Two corporate entities

PEACE RIVER REGIONAL
DISTRICT
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The Unique Governance Structure created for the
Fort Nelson-Liard Regional District
Northern Rockies Regional District
Unique Governance Structure
Town of Fort Nelson
Chair
Mayor
Chair/Mayor
4 Municipal Directors
4 Town Councillors
4 Directors/Councillors
3 electoral area Directors 2 from Area A 1
from Area B
3 Electoral Area Directors
The Firsts in BC

• Direct election of regional board chair
• Appointment of chair as mayor
• Electoral Area with two directors
• All town councillors on regional board

• Two corporate entities served by one
• administration

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Evolution of the Governance Structure 2001
20052002 Opinion Poll on Governance
In an October 30th, 2002, letter to the Mayor
of Fort Nelson the then Minister of Community,
Aboriginal and Womens Services, George Abbott
wrote
I am glad we had the opportunity to discuss the
idea of a regional municipality. I salute you for
taking this issue to the electorate in a
referendum that will coincide with the municipal
elections on November 16th, 2002. As I indicated
I am supportive of developing legislation to help
you.
Referendum held November 16, 2002

• Election at large approved by 89

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Governance Structure 2006 Introduction of
Regional Council
Northern Rockies Regional District
Regional Council
Town of Fort Nelson
Mayor
Remains as corporate entity
Remains as corporate entity
7 Councillors
Directly Elected
Attributes

• Further unification and integration
• Removed the vestiges of two corporate structures
• Approved by minister as step towards integration
  of Town and Regional District
• Referendum approval by citizens supports
  Regional Municipality

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Efforts to achieve a Single Tier Government

• Studies of county concepts in the 1980s
• Semmens and Adams studies of the 1990s
• GWilliams studies and service delivery review
• Study tours of Wood Buffalo and County of
  Strathcona
• Two Provincial Ministers
• Staff from Ministries
• Municipalities RDs
• 2002-2005 Fair Share permanent solution

- Industry Business
- Urban Rural Citizens
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The NRRD participates in quest for permanent
Solution Fair Share Negotiations 2001 - 2005
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The Province appoints Vince Collins in 2004 as
Provincial Representative

• On March 31st, 2004 the then Minister of
  Community, Aboriginal and Womens Services,
  Murray Coell, wrote to the Chair of the PRRD and
  Chair of the NRRD advising
• Within government, we believe that a
  comprehensive approach is needed to address
  Northeast issues and the process must focus on
  defined interests, both regional public interests
  and provincial public interests.
• Since the regional policing dimension will
  be of interest to the Northern Rockies, the
  provincial representative will be asked to find
  appropriate way to assure their active
  involvement
• I would add that the review will not be
  limited to adjustments within the framework of
  the existing MOU (Fair Share) but will also
  explore proposals for a more durable and
  predicable regional finance scheme
• With good will and hard work, I believe
  that we can collectively arrive at an outcome
  that balances the needs of the communities in the
  Northeast, the oil and gas industry and the
  broader public interest represented by the
  provincial government

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The 2005 Fair Share Agreement

• Provincial Offer
• approved by Ministers
• Treasury Board Cabinet

Fair Share 2006 PRRD Distribution
Annual
Taylor 250,000
Hudson's Hope
331,651

• 15 Year Indexing
• Estimate is 8 based on
• Previous 7 years growth.

Pouce Coupe 575,231

Chetwynd 1,243,033
Tumbler Ridge 1,322,273
Dawson Creek 6,432,240

Fort St John 9,581,648
Rural Areas   1,259,750


20,000,000
2005
20,995,826
2006
23,871,000
2007
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The 2005 Fair Share Agreement

• Provincial Offer
• approved by Ministers
• Treasury Board Cabinet

Fair Share 2006 PRRD Distribution
Fifteen Year Estimate
Annual
Taylor 250,000
6,525,106
Hudson's Hope
331,651 8,656,232
Pouce Coupe 575,231
15,013,774
Chetwynd 1,243,033
32,443,691
Tumbler Ridge 1,322,273
34,511,888
Dawson Creek 6,432,240
167,884,203

Fort St John 9,581,648
250,085,093
Rural Areras   1,259,750
32,880,011

• 15 Year Indexing
• Estimate is 8 based on
• Previous 7 years growth.

548,000,000
20,000,000
2005
548,000,000
20,995,826
2006
548,000,000
23,871,000
2007
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The exclusion of the NRRD and the Town of Fort
Nelson from the Fair Share agreement
Provincial Position on the Exclusion of the
NRRDapproved by Treasury Board Cabinet Fort
Nelson is seen as having its own means to capture
the benefits of a wider industrial tax base. The
conventional means of accessing the industrial
tax base is not available in the PRRD as it is
in the NRRD. Mr. Collins stated that
the conventional means is the most appropriate
approach where opportunities exist
Conventional Means would include expanded use of
benefiting areas or incorporation of the
industrial tax base.
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Examining the feasibility of a Regional
Municipality
Phase 1 Consultations with Ministries Agencies
Phase 2 Determining the assumptions
A A municipally patterned structure
B Responsibility for Policing and Road Costs
C Provincial Rural Tax no longer levied
Phase 3 Feasibility report completed
Regional Council concludes there is adequate
support within Provincial Ministries to proceed
with formal study.
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Meetings and Consultations Feasibility review
2005-2006

• Meetings were held with
• Ministry of Community Services
• Ministry of Finance
• Ministry of Solicitor General
• Ministry of Energy, Mines and Petroleum Resources
• Ministry of Aboriginal Relations/First Nations
• Ministry of Transportation
• UBCM
• Municipal Finance Authority
• RCMP
• Minister Neufeld

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Results of the consultation process - 2005-2006

• Broad Consensus within government supporting the
  concept of a Regional Municipality
• The Regional Municipality based on a municipal
  model responsibility for roads and police
  costs
• Loss of Provincial Rural tax not an issue
• RCMP and Solicitor General supportive of
  regionalizing police
• Ministry of Transportation has been fully
  supportive
• MFA is supportive if required legislation is in
  place
• UBCM wants to be consulted
• Minister Neufeld has been very supportive
  throughout
• Province is focused on the issue of industry
  competitivenessand business industry tax rates

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The final step to a Regional Municipality
Northern Rockies Regional District
Town of Fort Nelson
Evolving Unique Regional District
Northern Rockies Regional Municipality
Regional Board
Shared Governance Structure 1987 - 2005
Town Council
Regional Council
Regional Admin Management
Shared Administration Management 1987
Town Admin Management
Administration Management
Regional Operations Service Delivery
Shared Operations Service Delivery from 1987
Town Operations Service Delivery
Operations Service Delivery
Full Integration of Finance Taxation One
General Tax Levy over entire tax base.
Town Finance Taxation
Regional Finance Taxation
The Final Step
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Budget and function amalgamation28 Regional
District functions One Budget
Regional District
Regional Municipality
Town of Fort Nelson
Regional Municipality General Tax Levy All
Existing Services Rural Roads Policing
Utility Operations Town Water Sewer Mile 292
Nat Gas Sys Pristine Valley Water Rural Water
West Rural Water South
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Transition to a universal tax base

• Issues
• 8 different tax areas and zones
• 26 separate tax levies budgets
• 2006 tax levy for all purposes 26 Million
• Approximately 88 of the overall levy (23
  Million)
• is supported by over 90 of the industrial tax
  base
• Significant portion of industry not paying for
  existing
• services facilities
• Illustrate the current situation

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Transition to a universal tax base
Town
Services
Town Planning
Emergency Measures
Animal Control Bylaw Enforcement
General Government Services
Tax Levy
Street System Maintenance
2.8 Million
Street System Capital Infrastructure
Industrial Tax Base
Fire Protection
1.4
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Transition to a universal tax base
Fire Protection Cost Recovery
This fire protection area
221,000
Tax Levy
Industrial Tax Base
221,000
7.4
From General Government Services Area - 775,000
Town of Fort Nelson
135,000

Total 1,130,000
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Transition to a universal tax base
Recreation Area
Services
Library
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Theatre
Cemetery
Aquatic Centre
Recreation Centre
Neighborhood Parks Ball Diamonds
Mosquito Control
Golf Course
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Tax Levy
Industrial Tax Base
2.13 Million
53.7
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The Transitional Property Tax Plan

• Regional Council resolution dated May 8th, 2006
• RESOLUTION NO. 146/06
• MOVED/SECONDED that the Fort Nelson and
  Northern Rockies Regional Council incorporate in
  the formal study of the regional municipality a
  Transitional Property Tax Plan to mitigate the
  intrinsic tax shifts that will occur in the
  transition to a general levy over the entire tax
  base and further that industry and business will
  be consulted during the preparation of the said
  transitional tax plan
• 
  
  CARRIED UNANIMOUSLY

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Transition to a universal tax base
Electoral Area B
Electoral Area A
General Government Services Area
Services
Town Road Operational Costs
Industrial Tax Base
55
Towns General Administration Costs
7.4
Portion of Fire Protection Costs
Excluded area includes Rural residential, BCR
Industrial Park, and all Forestry operations.
Tax Levy
Industrial Tax Base
3.28 Million
92.6
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Transition to a universal tax base
Electoral Area B
Electoral Area A
Functions Utilizing the Entire Tax Base
Services
Legislative Administrative
Solid Waste Disposal
Grants to Community Organizations
Economic Development Tourism
RD Weed Control
Regional Parks
RD Development Services (Regional Planning)
Recreation Programs
Airport
Museum
Community Services
Recreation Grant-in-Aid
Tax Levy
Industrial Tax Base
2.5 Million
100
Provincial Rural Tax levy
3.36 Million
Hospital
0.3 Million
School Levy
11.6 Million
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Projected tax rates for a Regional Municipality
Class 5
Class 4
Class 2
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NRRD conundrum on infrastructure funding
1 Million 1.10 tax rate
Location of Oil Gas Industry in the North East
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How do we deal with the Infrastructure deficit

• No Access to the industrial tax base for
• infrastructure the same as Peace River
• Communities.
• Consulting Engineers are assessing long-range
  infrastructure and Capital needs and preparing
  budget estimates.

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The Two Stream Approach
Northern RockiesRegional Municipality
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Provincial Recognition and approval stage

• March through June 2006
• Presentation of Project Proposal to
• Minister of Community Services Ida Chong
• Minister of Energy Mines Richard Neufeld
• Minister of Forests Rich Coleman
• Minister of Finance Carole Taylor
• CAPP (Canadian Association of Petroleum
  Producers)
• Duke Energy John Turner
• Canfor President Jim Sheppard

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Project Study Stage

• Preparation of a 15-year long-range capital
  infrastructure study
• Completion of the formal study
• Conduct research and analysis to meet industry
  and government requirements
• Detailed financial analysis and taxation impacts
• Ongoing work with ministries and agencies on
  policy and legislative issues

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An important partnership..

• The forging of an even stronger partnership
  between industry, the provincial government, and
  local government,is vital to the realization of
  the full economic potential of the oil, gas, and
  forest industries in the Northern Rockies
  Regional Municipality.

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Why priority should be given to the creation of
the RegionalMunicipality in the near future

• Police costs on the town tax base 1.2 Million
• Infrastructure upgrading required
• Growth pressures from industry

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The Proposed terms of reference for the study
v

• Feasibility and assessment stage
  May 2006
• Provincial Authorization and recognition stage
  June 2006
• Project study stage
  Sept 2006
• Project review and consultation stage
  Oct Jan 2007
• Project finalization stage
  Jan May 2007

v
Proposed target date for incorporation of
Regional Municipality June 30, 2007
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Approval has been given to proceed with a formal
study of the NORTHERN ROCKIES REGIONAL
MUNICIPALITY and to open negotiations on the
methods of funding infrastructure deficiencies
and costs of future growth.
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Request for approval to proceed with a formal
study of the concept of THE NORTHERN ROCKIES
REGIONAL MUNICIPALITY
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Integrating Services and Funding a Twisted Knot
Functions Services
of Cost Regionalized
of Industrial Tax Base
Town
General Government Services
45
90
Street System Maintenance
45
90
Street System Capital Infrastructure
0
0
Fire Protection
85
80
Town Planning
0
0
Animal Control
0
0
Emergency Measures
0
0
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Integrating Services and Funding a Twisted Knot
Functions Services
of Cost Regionalized
of Industrial Tax Base
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Integrating Services and Funding a Twisted Knot
Functions Services
of Cost Regionalized
of Industrial Tax Base
50
Integrating Services and Funding a Twisted Knot
Functions Services
of Cost Regionalized
of Industrial Tax Base
51
Integrating Services and Funding a Twisted Knot
Functions Services
of Cost Regionalized
of Industrial Tax Base
52
Request for approval to proceed with a formal
study of the concept of THE NORTHERN ROCKIES
REGIONAL MUNICIPALITY