Local Improvement Tax

What is a Local Improvement Tax?

A Local Improvement Tax is a way for the Town of Drumheller to fund specific projects that benefit only a particular area, such as curb, sidewalk, and roadway improvements. These projects enhance the local infrastructure on a specific street or area rather than serving the entire community. Since the benefits are localized, the costs are shared among the residents who will benefit directly from the improvements.

Initiating a Local Improvement

The process for implementing a local improvement can be initiated by either the Town or by a request from residents. Once the resident has proven that the majority of affected property owners affected are in support of the improvement, the Town will develop a Local Improvement Plan. The plan will outline the estimated costs of the improvement to each resident. After the plan is shared with affected residents, they will have the opportunity to review the information and decide whether to support or oppose the improvement project. This can be a lengthy process, which can take up to 18 months to see the final product. 

Local Improvement Plan Process:

Identify the Need for Improvement

The resident or a group of residents must first identify a specific area that requires local improvements, such as road resurfacing, sidewalk repairs, or curb enhancements.

Preliminary Discussion with the Town:

Before submitting a formal request, the resident should contact the Town's Infrastructure Department to discuss the proposed improvement. This will help residents to understand the feasibility, potential costs, and any preliminary assessments required.

Gather Support from Neighbours

Since a Local Improvement Tax will affect the properties in the vicinity, the Town requires proof that the majority of affected property owners are in support of the project. This proof must be attached as part of a formal request before the Town will begin the completion of a Local Improvement Plan.

Submit a Formal Request

The resident must then complete a Local Improvement Request Form. Submit it to the Town of Drumheller. The form should include details about the proposed improvement, affected properties, and any initial support from other residents. Letters of support or opposition must be attached. Please find the attached form below. Please speak with the Town’s Infrastructure Department prior to completing this form.

Town Review and Feasibility Study

Upon receiving the request, the Town will conduct a feasibility study, including cost estimation, technical requirements, and an assessment of potential benefits. The Town will also determine if the project aligns with current municipal priorities and budget.

Development of a Local Improvement Plan

If the Town deems the project feasible, a formal Local Improvement Plan will be developed. This plan will outline the project details, affected properties, estimated costs, funding sources, and the proposed Local Improvement Tax.

Notification to Affected Residents

The Town will then notify all affected residents, providing them with the Local Improvement Plan. Residents will have the opportunity to review the plan and voice their support or opposition.

Petition Period

Affected residents will have thirty (30) days to submit a petition against the Local Improvement. For the petition to be successful, it must be supported by at least 2/3 of the property owners liable to pay the tax and must represent at least 50% of the assessed value of the affected properties.

Final Approval

If there is no successful petition, the Town Council will review the project for final approval. If approved, the project will proceed as outlined in the Local Improvement Plan.

Implementation and Tax Levy

If the improvement is carried out, the Local Improvement Tax will be levied on the affected properties as per the payment plan.

Frequently Asked Questions

How Will These Improvements Be Paid For?

The costs associated with these local improvements will be paid by the affected residents either entirely or partially through a tax imposed under Part 10, Division 7 of the Municipal Government Act of Alberta. This tax, known as the Local Improvement Tax, ensures that the people who benefit most from the improvements contribute fairly to their costs.

What is a Local Improvement Plan?

Before any Local Improvement Tax is imposed, the Town of Drumheller will create a Local Improvement Plan. This plan will include:

  • A Description of the Local Improvement: This will detail the specific improvement project, such as the type of work being done and its exact location.
  • The Properties and Persons Liable to Pay: The plan will identify the properties and the owners who will be responsible for paying the Local Improvement Tax.
  • How the Tax Rate Will Be Established: The plan will explain how the tax rate is calculated, ensuring transparency in how costs are shared among those affected.
  • Estimated Cost of the Work: This section will provide a breakdown of the total estimated cost of the improvement project.
  • Funding Sources: The plan will outline how the project will be funded, specifying the portion of the cost that will be covered by Town funds, how much will be covered by the Local Improvement Tax, and any additional funding sources such as available grant funding.

What are my Rights and the Petition Process?

Once a Local Improvement Plan is created, the Town will send the relevant information to the affected residents. Residents have the right to petition against the local improvement. To be successful, the petition must:

  • Be supported by at least 2/3 of the property owners who are liable to pay the tax.
  • Represent at least 50% of the assessed value of the properties on which the tax will be applied. This means that the properties of those opposing must collectively be worth at least half of the total property value of all the properties that would be taxed.
    • For example, if there are 10 properties affected by a Local Improvement Tax, and the total assessed value of all these properties is $1,000,000, then the residents who are against the tax need to own properties worth at least $500,000 combined. This ensures that it’s not just a few lower-value properties that are against the tax, but that a significant portion of the affected area, both in number and value, is represented in the opposition.

Residents will have thirty (30) days to submit their petition after the information has been sent out.

Local Improvement Request Form

As noted above, a Local Improvement Tax is a way for the Town of Drumheller to fund specific projects that benefit only a particular area, such as curb, sidewalk, and roadway improvements. These projects enhance the local infrastructure on a specific street or area rather than serving the entire community. Since the benefits are localized, the costs are shared among the residents who will benefit directly from the improvements.

Please begin by filling out the form below. Once the request has been submitted, a representative from the Town of Drumheller will schedule a meeting to further discuss the request. 

Please include the following descriptions:

  • Type of Improvement: (e.g., Sidewalk Replacement, Road Resurfacing)
  • Location of Improvement: (Provide specific street names or block numbers)
  • Reason for Improvement: (Explain why this improvement is needed)

If you have any supporting files for your Local Area Improvement, please upload 1 (one) file.

Allowed file types for upload: .doc, .docx, .ppt, .pptx, .txt, .pdf, .pages, .xls, .xlsx, .jpg, .jpeg, .png, .mov, .mp4, .m4v, .avi, .mpg. The maximum total size of all files in a single form submission is 1 GB.

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The maximum total size of all files in a single form submission is 1 GB.

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