Chris Clegg
Emily Plihal
South Peace News
Realizing the M.D. of Smoky River was doing its “due diligence” by sending notice to possibly withdraw from several agreements in the Smoky River region, McLennan town council voiced its concerns at its Aug. 11 meeting.
“I can’t believe they (M.D.) can’t recoup some of that (tax) money,” said Councillor Maggie Gervais.
The M.D. recently sent formal notices June 18 to the Town of McLennan, Town of Falher, Village of Donnelly and Village of Girouxville providing a required six-month notice of potential withdrawal from shared services agreement.
The M.D. has faced high financial stress from uncollected taxes from oil and gas companies, after the Government of Alberta created policies to allow the companies to forgo paying municipal taxes.
Currently, the M.D. is carrying approximately $7.4 million in uncollected oil and gas taxes, a total that accounts for approximately 34 per cent of annual taxes, according to Reeve Robert Brochu.
The letter indicates if finances do not improve the M.D. will have to withdraw from Smoky River Regional Health Care Professionals Attraction and Retention Committee, Local Libraries, Falher Regional Pool, Family and Community Support Services, Smoky River Transportation, and Smoky River Economic Development.
“It is a legislative requirement for us to provide this notice of potential withdrawal,” wrote Brochu in the letter.
McLennan council realizes the impact the withdrawal will have on citizens.
“With all the things they could cut. . . why choose these?” asked Councillor Marie-Anne Jones, citing perhaps the Smoky River Skill Hill deserved consideration.
Gervais and Councillor Margaret Jacob agreed the transportation program was a great need in the region.
“There isn’t one of them (services)I don’t think we don’t need,” Jacob added.
“What do you do when you don’t have funds?” asked Mayor Jason Doris.
“To me there are other things you can do,” he added.
“There’s nothing we can really do,” said Jones. “Lobby the government and make (oil and gas companies) pay.”
In a July 16 South Peace News story, Donnelly Mayor Myrna Lanctot expressed her concerns.
“Council has reviewed the M.D.’s recent communication with care and has expressed concern about the potential impact on several joint programs that benefit our community,” wrote Lanctot.
“While only some initiatives were referenced directly, we believe others may also be at risk and have included those in our response,” she adds.
“We’re committed to maintaining a strong partnership with the M.D. and ensuring these programs continue to serve our residents effectively. We remain hopeful for continued collaboration and open dialogue,” she adds.
The Town of Falher has since issued a response on its website to its residents, first telling residents the M.D.’s letter was procedural.
“We understand the financial pressures all municipalities are facing, the Town of Falher is deeply concerned about the potential loss or reduction of services that residents (both urban and rural) rely on,” cites the letter.
“These decisions, if carried through, could lead to changes in how we operate regional services and may impact service levels in Falher.”
Falher council then urged M.D. residents to talk to their councillors.
“If you are a resident of the M.D. of Smoky River, and these services are important to you and your family, we strongly encourage you to reach out to your M.D. council to make your voice heard. These programs benefit our region as a whole, and continued participation from all partners is key to maintaining their long-term sustainability.”
Falher council adds the services cited in the letter are not luxuries.
“They are the foundation of our regional well-being, economic development and quality of life.”
The full text of the letter is on the Town of Falher’s website.
Lanctot wrote Premier Danielle Smith about the matter July 11.
“I write to express our growing concern regarding the continued issue of unpaid oil and gas property taxes and its indirect – but serious – impact on small municipalities throughout Alberta,” wrote Lanctot.
She referred to the M.D.’s plight and the money they contribute to regional services.
“The ripple effects are considerable,” wrote Lanctot.
“Shared services and regional initiatives – some of which are vital to small communities like ours – are now vulnerable.”
Lanctot asked Smith to strengthen legislation to ensure oil and gas property taxes are paid, to explore ways to protect regional partnerships from financial fallout, and support municipalities with targeted funding or transitional relief to preserve services.
“We ask that your offices prioritize this issue and help ensure continued strength and fairness across the province,” she concluded.
“We have spoken to the Municipal Affairs minister and the premier to make them aware of our concerns, their government policies are beyond our control,” Brochu explained.
“They’ve promised they will find a solution.
“We are hoping that we will not actually have to withdraw from funding any of these programs,” Brochu concluded.