Agenda Item No.: E.1.f.
Intervenor Status in the Calgary 2006 Linear Appeal and the Calgary Action Against the
Minister of Municipal Affairs
Recommendation:
That Executive Committee recommend to
City Council:
1. That Edmonton apply to intervene in the
Court of Queen’s Bench Action No.
0601-08908 initiated by Calgary against
the Minister of Alberta Municipal
Affairs; and
2. That The City of Edmonton intervene in
the Calgary 2006 Linear Appeal before
the Municipal Government Board.
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Report Summary
In order to protect the financial interest of
the City of Edmonton, Administration
recommends intervention in the City of
Calgary’s Statement of Claim against the
Minister of Alberta Municipal Affairs and
the Municipal Government Board appeal.
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Report
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Equalized assessments and linear
property assessments are prepared
annually for each municipality by the
provincial assessor designated by the
Minister of Alberta Municipal Affairs
(AMA).
Calgary recently lost their 2004
Equalized Appeal at the MGB. They
have appealed this decision to the Court
of Queen’s Bench.
A decision by the Court of Queen’s
Bench on Calgary’s Statement of Claim
may impact all of the equalized
assessments in Alberta from 1999 to
2006.
To protect the interests of our ratepayers,
Administration is seeking direction from
Council to intervene before the Court of
Queen’s Bench.
Routing:
Delegation:
Written By:
August 16, 2006
File: 2006PDA018
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Executive Committee, City Council
L. Benowski/B. Dykstra
S. Dilworth
Planning and Development Department
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Edmonton intervened in the Calgary
1997, 1998, 2001, 2002, 2003, 2004,
2005 and 2006 equalized appeals.
Edmonton was also a joint complainant
with Calgary for the years 1999 and
2000.
As part of the settlement of the 1999 and
2000 equalized assessment complaints,
AMA formed the Equalized Assessment
Panel (EAP). Our current City Manager
served as the Edmonton representative
on the provincial EAP.
One of the EAP recommendations in
their 2000 report was to implement an
annual review of the regulated property
rates and where necessary to adjust
them.
Although the Province adopted this
recommendation, no changes in the
linear rates have occurred. As a result,
Calgary has also appealed their 2006
linear assessment.
A decision of the Municipal Government
Board (MGB) on Calgary’s linear
property appeals may impact linear
assessments in Edmonton.
In addition, each municipality received a
letter and an impact study in late May
2006 from AMA setting out the
proposed updates of their linear property
assessments. The deadline for reply was
June 30, 2006.
The proposed linear rate and
depreciation allowance changes will
result in a loss of approximately
$2,000,000 in linear assessment and
$40,000 in tax levies for Edmonton.
Although the linear assessment rates are
increasing, there is also a proposed
Intervenor Status in the Calgary 2006 Linear Appeal and the Calgary Action Against the
Minister of Municipal Affairs
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increase in the allowance for
depreciation from 25% to as high as
40%.
Attachment 1 to this report is
Administration’s reply to AMA on these
changes. This response is consistent
with recommendation 8 from the
Property and Business Tax Structure
Review Committee Report presented to
Council on September 27, 2005.
Budget/Financial Implications
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There may be some exposure and
financial risk for the tax years 1999 to
2006 regarding provincial education tax
requisitions.
The 2006 municipal and provincial
education tax levies on Edmonton’s
linear assessment are approximately
$16.5 million and $6.7 million
respectively. A decision of the MGB on
Calgary’s challenge to linear property
assessments may affect Edmonton’s
2006 linear property tax levies.
If the province implements the proposed
linear property assessment rates and
depreciation, Edmonton will experience
a drop in these 2007 tax levies.
intervenor in Calgary’s action against
the Minister of AMA.
Justification of Recommendation
1. Intervenor status is required in order to
participate in the Court of Queen’s
Bench Action No. 0601-08908 initiated
by Calgary in July 2006.
2. Intervenor status is required in order to
participate in a hearing before the MGB
which may affect Edmonton’s 2006
linear assessments.
Background Information Attached
1. Letter to the Minister of AMA on the
linear property assessment rates
Background Information Available on
Request
1. Statement of Claim filed in July 2006 by
Calgary in the Court of Queen’s Bench
Action No. 0601-08908
Others Approving this Report
J. Tustian, General Manager,
Corporate Services Department
Legal Implications
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Section 508 of the Municipal
Government Act, R.S.A. 2000, c. M-26
(MGA) states that if Council considers
the interest of the public in the
municipality is sufficiently concerned, it
may authorize the municipality to
become a complainant or intervenor in a
hearing before the MGB.
Application to the Court of Queen’s
Bench is required in order to become an
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