Jasper’s chamber of commerce critical of municipal budget

Perimeter fencing going up on Patricia Street in Jasper, Alta. on July 31, 2024 after fire destroyed about 30 per cent of buildings in the town on July 24. (Source: Parks Canada)

The Jasper Park Chamber of Commerce (JPCC) criticized municipal council’s decision not to reduce spending in the 2025 budget.

Paul Butler, executive director of JPCC, explained at council’s Tuesday (May 20) meeting that the chamber had asked the municipality to reforecast its 2025 budget on several occasions, given the impact of 2024 wildfire on the business community.

“That community pays a greatly disproportionate share of municipal tax assessment,” Butler said, noting the 4.9 per cent increase to the budget was “unsupportable in this circumstance.”

During the meeting, council gave first and second reading to the 2025 taxation rates bylaw. Third and final reading will likely occur at the June 3 meeting, with tax notices going out afterward.

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Council also directed administration to incorporate more non-tax revenue in the 2026 budget and set up a workshop about the tax split between commercial and residential properties before the end of this council’s term.

Last week, council opted not to amend the budget due to the Alberta government helping offset municipal revenue losses.

Because of the properties destroyed in the fire, the municipality is estimated to have lost $2.8 million in property tax revenue this year. Under a conditional grant agreement, the provincial government will cover $2.52 million, and the municipality will cover the remaining $280,000 using reserves.

Although the chamber has pushed the municipality to reduce spending, administration argued this would not result in significant savings for ratepayers due to the contribution from the provincial government.

It estimated that reducing the tax levy by the entire 2025 increase would only save ratepayers $55,356.

Butler disputed the math, saying the potential savings would have been much greater.

“In its analysis, administration incorrectly deducted the potential tax reduction from the anticipated provincial contribution where that deduction should have been made from the tax requisition and then the provincial contribution should have been precalculated,” he said.

Butler requested that council direct administration to prepare a draft 2026-30 operating budget with zero per cent increases for the next three years to help inform the next council after this fall’s municipal election.

Coun. Rico Damota said he appreciated where the chamber was coming from, but when it came to the alleged miscalculation, “it’s a matter of where you want to apply it, before or after it goes into the budget.”

Coun. Ralph Melnyk emphasized property taxes funded essential services that benefited the entire community and allow Jasper to welcome visitors during the four busiest months of the year.

“It is important to recognize the value of the services offered by our municipality and other municipalities,” added Coun. Kathleen Waxer.

Although council still supported the budget, Coun. Wendy Hall advocated for increasing non-tax revenue, such as paid parking revenue.

“We know that 30 per cent of our tax dollars go to supporting our visitor base,” Hall said. “It doesn’t seem fair. We’re a small town with very limited opportunities for revenue, and we’re expected to provide services for more than double our population on any given day on a year-round basis.”

Coun. Helen Kelleher-Empey also highlighted the need to reexamine the 5:1 tax split between commercial and residential, which has been a concern for years.

Peter Shokeir, Local Journalism Initiative Reporter, Jasper Fitzhugh