Regional Cost & Tax Sharing Agreement
The County of Wetaskiwin, The City of Wetaskiwin and Town of Millet have a unique relationship compared to other areas in the province of Alberta, as they have a dynamic economic partnership between them under the Joint Economic Development Initiative (JEDI). JEDI has an award-winning industrial land development cost and revenue tax sharing agreement with the partner municipalities, designed to simplify and further growth. The cost and revenue sharing agreement is structured to support industrial development in the following manner:
a) All tax revenues from industrial land developments registered and developed after 2006 are shared between the three partner municipalities regardless of the development’s location.
b) The land tax revenues are distributed between each municipality by weight, based on the proportion of population of each municipality. The population weight is measured by the existing figures provided by Statistics Canada for each municipality.
c) To account for the initial servicing costs of the municipality where the development resides, that municipality is given priority in the initial tax revenues until its costs are recovered. From the beginning of the development, 75% of the tax revenues are given to the resident municipality until its installation and servicing costs are recovered, while the remaining 25% is allocated to the shared municipal pool. Once the resident municipality has recovered its costs through this process, 100% of the tax revenues are returned to the shared municipal pool.
The benefits to this sharing agreement are:
- No competition for industrial land development and a strong regional partnership between the three municipalities
- Seamless agreement and quick processing of required annexation of land for further development
- The removal of obstacles to developers who wish to develop locations that would benefit from or require an annexation