By Leslie Cholowsky, Editor, The Community Press
During the regular meeting of Flagstaff County Council on Wednesday, May 6, Council reviewed the 2025 Municipal Indicator results from the province.
Municipal indicators are issued and hosted by the Province of Alberta for every municipality, whether it be country, town, city, or village. They measure specific aspects of each municipality’s governance, finances, or community.
The Province says these indicators provide municipalities and Municipal Affairs with useful information and help to highlight emerging challenges.
These aspects are weighed against defined benchmarks to, as the province says, “provide a general indication of acceptable risk.”
For Flagstaff County, all 13 indicators are green, or meet those benchmarks, but two were designated as ‘red,’ those being the tax collection rate and infrastructure investment.
Council heard from Corporate Services Director Deb Brodie and CAO Shelly Armstrong on these issued.
Brodie noted that the tax collection rate is presently 87 per cent, three under the 90 per cent threshold, and told Council, “Outstanding taxes from oil and gas properties make up 91 per cent of the $3.55 million not collected for 2025. As long as these sit on our books, our percentage will not be over 90 per cent.”
Brodie explained to Council that while presently the overdue taxes are set up in the budget as bad debt, they are not yet written off, as that is an exhaustive process that leaves no recourse to collect. The amounts are recognized as loss of revenue and the budget is adjusted accordingly, she says.
Armstrong told Council that as long as bad actors in the oil and gas industry are allowed to continue to operate without paying taxes without repercussion, municipalities will continue to have higher uncollectable tax ratios.
As far as Investment in Infrastructure, Council heard that this is calculated on a five-year average. The County’s current long-term business plan, 2026-2029, will see asset replacement exceeding their amortization. Council heard that the 2026 capital spending plan will mean that Flagstaff County will meet the requirements by year end, and will continue to do so in the coming years.
Municipal Affairs requires Council to review the areas of concern and offer resolutions that are in progress or expected.
Read this and more, originally from the June 3 edition of The Community Press!
