MUNICIPAL DISTRICT OF BIGHORN – The Municipal District of Bighorn council rejected an amended fee schedule for the Burnt Timber Gravel Pit, directed administration to not proceed with private sales from the pit and not provide what would have been a required $15,000 deposit to continue with private sales.
The pit received a renewal of its operations, but Bighorn council decided to not continue with private sales due to the deposit and what would have been a significant rate hike for people purchasing gravel for private use.
The deposit had been directed by the Alberta government and would have gone into provincial coffers, while the cost of private gravel sales would have jumped by about $30 to $47.12 per cubed metre to cover costs.
“It is basically to incorporate changes to our gravel sales costs,” said Bill Luka, director of operations. “It also incorporates a few administrative changes.”
Between 2009 and 2020, the MD sold an average of 15 cubed metres per year to residents. Based on this, with an assumed interest rate of three per cent, there will be an annual lost cost of $450 to provide the $15,000 security. The province also receives a royalty of $1.20 per cubed metre for private gravel sales.
Gravel sales costs have already increased significantly from $8.21 per cubed metre in 2018 to $15.92 per cubed metre in 2022.
In March, the streets and roads committee had administration send a questionnaire to ratepayers to see if they wanted to discontinue private gravel sales completed at the Burnt Timber pit, or if they wanted to have increased rates for gravel sales on private land.
The questionnaire was sent out to 46 properties owned by 36 residents, with two being received.
“It really shows it is not a big topic of interest,” Luka said. “One of the comments was thank you for providing us the option, even though it is going to be quite a bit more.”
When asked by Coun. Rick Tuza why the province wanted the security deposit, Luka said he was not sure and the municipality was responsible for operating the pit.
“It is just a requirement of the province,” Luka said.
Reeve Lisa Rosvold asked for clarification regarding the choice before council.
“If we proceed with amending this fee schedule, that is saying we want to provide the $15,000 security deposit so we could potentially sell gravel,” Rosvold said. “If we don’t want to provide that deposit, we can’t sell gravel.”
Luka said it was the case for any gravel sales that are being used on private land. He added he understood there were other nearby options for gravel sales if residents needed the material.
He added the municipality would get the deposit back once the obligations with the province were met such as the reclamation of the pit.
