Banff is like no other small Alberta town.
Municipalities fund their towns from tax revenues and government grants, but because Banff has a federally-legislated cap on commercial development, it will always have a limited tax base.
That’s forcing the Town of Banff to come up with different ways to collect revenues to pay for the necessary services and programs for the town’s 8,000 residents – and up to three million annual visitors.
The municipality plans to beef up lobbying efforts this year to get the provincial government to consider some form of resort status in recognition of Banff’s unique needs as a competitive tourist town.
“We want them to become educated on our challenges of hosting as many visitors as we do, on a very low tax base, as well as pointing out the revenues we generate to the province,” said Mayor Karen Sorensen.
“Our job is to build a rapport with new people in the provincial government, ensure they understand the situation fully, and hopefully move forward with productive discussions and solutions.”
Seeking resort community status for the Town of Banff – which would likely take many years to achieve – is one of town council’s strategic priorities for 2012.
Council is looking for some form of recognition that could lead to ‘alternative and diverse revenue sources and financing tools to help Banff achieve financial sustainability in a more equitable manner’.
Banff, which attracts national and international visitors who then travel to other parts of the province, such as the badlands and Calgary, rakes in millions and millions of revenues for provincial and federal government coffers.
Most cities and towns in Canada are seeking some kind of stability or change in funding structure, but Banff and Jasper are leading the charge on behalf of resort communities in Alberta.
In neighbouring British Columbia, the government set up a revenue sharing agreement in 2006 to allow resorts to share a portion of the province’s hotel tax to invest in local projects and programs.
B.C. resort communities can only spend the revenues on certain tourism-related infrastructure, programs or marketing. It can’t be used on general municipal services for residents and taxpayers.
Whistler – which had to submit a strategy to the B.C. government for approval – was the first to sign on to the program there, followed by Golden and Rossland.
“It’s hard not to look at the B.C. model, where they do recognize resort municipalities and they have found a unique way to do that,” said Sorensen. “But I’m not saying what they do is what we should do.”
A 2007 Alberta report concluded Alberta’s municipalities face significant funding shortfalls that threaten their ability to provide infrastructure and services demanded by a rapidly growing economy.
The report, titled the Minister’s Council on Municipal Sustainability, was from the Alberta Urban Municipalities Association, the Alberta Association of Municipal Districts and Counties, Edmonton Mayor Stephen Mandel and former Calgary Mayor Dave Bronconnier.
The report suggested the Alberta government enact enabling legislation to allow municipalities to levy and collect, at their discretion, additional own-source revenues to strengthen municipal coffers.
Some of those recommended revenue measures included an amusement tax, municipal sales tax, tourism tax, property transfer tax, gas tax or vehicle registration tax.
Meanwhile, Banff council’s other top priorities for 2012 include sustainable transportation, effective land use to ensure Banff is sustainable and prosperous, support for the Competitive Initiative, and urban forest management.
Council has also ranked other projects, including improving the appearance of residential waste bins, an updated bylaw enforcement strategy and a review of the effects of provincial policing grant reductions.
