Council Considers Sutter Report on Local Governance  

After discussing the Sutter report at its December meeting, the Waskesiu Community Council decided unanimously to begin discussions with Parks Canada on the issue of local governance for Waskesiu. Council is developing a position paper to be finalized in mid-January for presentation to Parks Canada for its consideration.

A final decision on this very important issue is contingent upon satisfactory negotiations with Parks Canada, community support through a referendum, and provincial legislation to establish Waskesiu as a municipality.

Major Findings

The Sutter report, available on Waskesiu.Org in its entirety, provided detailed analysis to enable Council to make an informed decision. Some of the major findings include:

• Municipal status would provide Council with the capacity to address issues such as deteriorating infrastructure through its budgets, establish local priorities, and provide programs, such as recreation activities for youth, in response to community aspirations. Accountability to electors would be greatly enhanced.
• Waskesiu’s tax base is estimated at $85 million, thus providing the base for financial sustainability at reasonable and affordable tax rates.
• The annual operating budget for Waskesiu, including debt repayment of $266,000 and utilities costs of about $291,000, would be just under $1 million. The $266,000 is the estimated cost for the streets and roads program identified below.
• These expenditures would be financed through property taxes of approximately 8.2 mills and utility fees. The projected mill rate is well below mill rates found in benchmark communities.
• The budget would include an expenditure of about $2.5 million for the upgrading of streets and roads to be financed through a debt instrument to be repaid over 10 years.
• The municipality would engage a small staff of about 7 during peak periods to provide services to the community.
• The municipality would be governed by an elected council that would have duties and responsibilities similar to those in other Saskatchewan municipalities, except for land use and development, and environmental issues that would remain under the control of Parks Canada. Provincial legislation would be required to effect this change. Council would have the authority to establish local priorities and adopt bylaws, such as a noise bylaw.
• The change from a land rent and camping fee system to a property tax system will result in some shifts in costs among residents. The current system is based on land values only, while a property tax system is based on land and improvement values. In general, cabin owners would see higher costs than is now the case, but lower than anticipated costs under a lease system currently being negotiated by the Cabin Owners’ Association. Cottage owners would not likely experience much change to existing costs. Business owners with large developments on their land would experience higher costs while others could see a cost reduction.
• Property taxes in support of educational services will not be required.

Assumptions

• Land rent on properties will be reduced to $1 per annum. All other lease provisions would remain.
  Parks Canada will pay grants-in-lieu of taxes based on municipal mill rates established by Council. Currently, this is estimated at $82,000 per annum.

• The existing community loan incurred for various sewer and water projects will be forgiven by Parks Canada. The loan, currently financed through utility fees, is approximately $930,000 and carries an annual payment of about $91,000.
• Parks Canada will continue to accept responsibility for costs associated with Federal environmental standards that exceed provincial requirements. This is important relative to the sewage lagoon requirements.
• Parks Canada will adopt a similar stance as it did in Jasper and transfer land and assets required for the municipality at nominal cost.
• The tax base is confirmed through a full assessment. The current data were based on a sample assessment conducted by the Saskatchewan Assessment Management Agency and extrapolated to the whole community. The estimate is deemed to be accurate within 10% but requires confirmation.
• Identified capital cost requirements to be financed by the community are $2.75 million. These estimates must be verified.

It must be emphasized that many of these assumptions are subject to negotiations and verification.

Moving Forward

The decision to proceed with municipal status for Waskesiu will be made by Waskesiu electors. At this time, it is anticipated that a referendum will be held in July, 2006. Council is planning several activities to ensure that the community will be in a position to make an informed decision.

The tentative schedule is as follows:

• Community Council approval of a position paper to be presented to Parks Canada in mid-January.
• Response from Parks Canada by mid February to determine if the proposals can be pursued.

Assuming a positive response from Parks Canada,

• Council meeting with major stakeholder boards towards the end of February, 2006
• Further negotiations with Parks Canada on details of plan in February-March
• Public consultation meetings in Saskatoon and Prince Albert in March, 2006
• Further public information meetings in May and June, 2006
• Community referendum on July long weekend
• Community Council elections to be held on August long weekend, as required by the Memorandum of Agreement

Conclusion

This important issue requires the community’s serious consideration. Residents are strongly encouraged to read the entire Sutter report, available on Waskesiu.Org and to offer comments and suggestions to Council.

At this point, Council believes there is sufficient merit in the concept to engage in discussions with Parks Canada in order to develop a more precise plan for presentation to the community. As is often the case, we may find the devil is in the details. Nonetheless, the municipal option may present opportunities for local decision making, keep taxes and fees collected in Waskesiu, be an effective way to arrest the ongoing deterioration of Waskesiu’s infrastructure, provide much needed recreational programs, and enhance accountability to electors. As noted above, Waskesiu residents will make the final decision before a municipality is established.

Prepared by: Herve Langlois

Vice-chair, Waskesiu Community Council and Chair of Local Governance Committee