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1. What is annexation?
Annexation is the act of incorporating land from one municipality into another municipality. Annexation does not involve a change in land ownership, simply a change in municipal jurisdiction.
In terms of The City of Red Deer, annexation involves changing the official border of the city to accommodate its growth. This means that some areas that are now located within County jurisdiction would be brought under City jurisdiction.
2. What is the difference between annexation and expropriation?
Expropriation involves a change in land ownership. Expropriation occurs when an owner is obligated to sell his or her land, at market value, to a municipality for the purpose of a specific major project (for example, expansion of a major roadway or the creation of a commuter train and stations within a city).
Annexation does not involve a change in land ownership. Owners continue to own their property, but since the boundary of the city does change, the property shifts from being located in the County to being located in the city. Now that Phase I Annexation has been approved, property owners or tenants no longer live in the county; they live in the city.
3. Why does The City need to annex land?
The Intermunicipal Development Plan, adopted by The City and Red Deer County on July 5, 2007, identifies areas for future growth both for The City and the County. Recent estimates suggest Red Deer could reach a population of 300,000 in 45 to 75 years, and the areas annexed will be used to accommodate the future residential, industrial and commercial development needed for this increase in population.
The Intermunicipal Development Plan encourages The City to annex the entire City Growth Area within 10 years. This Phase I Annexation is part of that process.
4. What area has been annexed?
The annexation encompasses roughly 100 hectares south of the Red Deer River and east of the Queen Elizabeth II highway; 1,300 hectares along the north side of Red Deer; and 1,600 hectares along the east side of the city.
5. What is the annexation process?
The Municipal Government Board (MGB) directs this process and ultimately makes a recommendation on the annexation to the Minister of Municipal Affairs. The process begins when one municipality initiates an annexation proposal with another municipality. Public consultation must then be held with the affected land owners, followed by negotiations between the two municipalities. If agreement cannot be reached, mediation must be attempted in good faith.
Once mediation is complete, whether it is successful or not, the initiating municipality will prepare a report to the MGB, which decides if a hearing is required. If it is required, the timing is dependent on the Board's schedule, as they manage hearings related to annexation, property assessment, taxation, and municipal disputes across the province.
Following a potential hearing, the Board will make their decision based on several factors, including how quickly land is absorbed for development, how quickly land is depleting within the municipal boundaries, and the municipality's ability to service the land.
6. How will taxation work in the annexed area?
The City has worked hard to develop a taxation formula that recognizes the unique circumstances of including more rural properties into an urban centre. The following is planned for the Phase I Annexation:
Residential
In order to provide a transition to the city tax rate, residential property owners will receive the difference between The City and County tax rate, in the year of annexation, based on a 10-year period as a one-time credit applied to the City property tax account. For example, if there is a $400.00 difference in taxes between The City and County in the year the property is annexed, a resident would receive 10 times that amount, or $4000.00, as a credit on the City tax account. This credit would be applied to the first City tax bill and all subsequent bills until the credit is exhausted.
Agricultural
Agricultural properties will continue to receive their present exemptions for a period of 25 years, unless legislation changes. This includes farm buildings, which would be exempt from taxation. Primary residences associated with farming would have an exemption of $61,540.00 of assessed value, and each additional residence associated with farming would have an exemption of $30,770.00 of assessed value.
The City will also adjust the farmland mill-rate to closely reflect the County’s rate, which will help ensure taxes remain relative to those paid in the County.
These agricultural exemptions would remain in effect for 25 years unless any of the following occurs:
- Subdivision or separation of title of less than 16 hectares (40 acres) occurs.
- At the request of, or on behalf of, the landowners or a purchaser, the property is re-zoned under The City’s Land Use Bylaw to another designation other than agricultural.
- Changes in legislation are enacted by the provincial government.
If any of these occur, landowners may lose their allowable exemptions on farm buildings and residences.
City tax rates will apply to all properties upon annexation. Property values will be assessed based on the same legislative standards as used by Red Deer County. The standard is market value. Market value between the City and County may differ; properties generally enjoy higher market value the nearer they are to an urban center or anticipated development. Because of these factors, some properties may see an impact on their market value and, therefore, their overall property assessment and taxes.
Industrial or Commercial
The City does not tax machinery and equipment, as is done in the County. As with residential property owners, industrial and commercial land owners will receive the difference between The City and County tax rate, in the year of annexation, based on a 10-year period as a one-time credit applied to the City property tax account.
7. Will people in the annexation area be able to hook up to City utilities?
Water and sewer services become available when development or urbanization occurs in an area. Once that occurs, the ability to benefit from City services is done through a Local Improvement Bylaw.
A local improvement can be initiated by the municipality or by a petition from residents. A petition is an official request to City Council and requires signatures from two-thirds of the area residents. Residents can also petition against a local improvement initiated by the municipality by getting two-thirds of the residents to agree.
If a local improvement bylaw is passed, residents in the area would be required to pay for all costs to bring the infrastructure to the property line. This means each individual homeowner would be responsible for paying a portion of the costs. Residents can choose to either pay in one lump sum or in payments added to their tax bill over a number of years, typically 10 to 20. The cost of the connection from property line to a home would be the responsibility of the homeowner.
The City’s Utility Bylaw does state that if services are available, residents are required to connect to City services within a specified time period. The current City Utility Bylaw can be found at www.reddeer.ca under City Government.
8. What types of City services will people in the annexed area receive?
Policing Services
The City of Red Deer provides police services for any area within its boundary. This would mean that police service by The City RCMP detachment would now extend to the annexed areas.
Emergency Services
The City of Red Deer already provides Advanced Life Support ambulance service in the area. This will continue. The City of Red Deer will also provide fire service to the annexed areas. Red Deer’s full-time firemedics are on-duty and available to respond 24 hours a day.
Environmental Services
The City of Red Deer will provide the following services in the annexed area. Full details of how these services will be provided in the annexation area will be communicated to land owners now that annexation has been approved.
- Yard waste collection from mid-April to late-October
- Recyclables collection
- Access to the Waste Management Facility, which includes a household hazardous waste facility
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Solid waste collection
Recreational and Library Facilities
City residents have full access to all City recreation and culture facilities. Residents can also purchase a membership to Red Deer Public Library at the resident rate of $10.00, rather than the $40.00 non-resident rate. Children and Teen library cards are free.
Transit Services
Regular transit services will extend into newly annexed areas as development warrants.
9. Will land uses or zoning in the annexed area change after the annexation?
Now that the annexation has been approved, The City automatically inherits the County’s statutory plans, zoning, and any other bylaws or regulations that apply specifically to the land in the annexed area. Annexation will not impact the present use of these lands. After annexation, any future changes to land uses proposed by The City will have to go through a statutory public consultation process.
10. Will people in the annexation area be subject to City bylaws?
Upon annexation, all The City’s bylaws become applicable. This includes the Community Standards Bylaw, the Firearms Bylaw, the Dog Bylaw, and the Traffic Bylaw, to name a few. These regulatory bylaws would apply to all properties in the annexed area. The City will provide landowners with more information on applicable bylaws and who to contact if they have questions.
The most common City bylaws can be viewed at www.reddeer.ca under City Government.
11. How will existing businesses in the annexation area be impacted by annexation?
Businesses operate in a similar fashion in The City as they do in the County; therefore, existing businesses can continue to operate after annexation, but they will now be subject to City, instead of County, regulations for licensing, expansion, and fire safety, among other things.
12. How will annexation affect new construction in the annexation area?
New construction will be required to meet all City bylaws now that the land has been annexed into the city. As well, any renovation or expansion to a building will be required to meet all City bylaws and building codes. For example, temporary buildings, which are commonly allowed in the County, are discretionary within The City of Red Deer.
In terms of process, all building, development, demolition, signage, electrical, mechanical and other types of permits must be acquired through The City of Red Deer. City permit rates and regulations will apply.
13. Will addresses change in the annexation area following the annexation?
In most cases, current addresses will remain the same, including postal codes. A change will only occur as development approaches and The City is required to change from rural to urban civic addressing. At that time, area residents will get notices from both Canada Post and The City that addresses and postal codes will change.
14. How will annexation affect annexation-area families with children who attend Catholic school?
Annexation of the areas proposed by The City of Red Deer should not affect where Catholic students go to school. This is a regional board already serving the Phase I annexation area. The Board has their own process for determining school attendance areas.
There will also be no impact to busing as a result of annexation. Changes may occur as a result of demographic changes in a given area.
15. How will annexation affect families with children who attend public school?
Under the legislation, the boundaries of Red Deer Public District are the same as The City of Red Deer boundaries. Students living on properties annexed into the city would then be eligible to attend Red Deer Public Schools. The city is divided into geographic attendance areas to determine which schools students will generally attend, although students often attend a school of choice, subject to the availability of space or resources at that school.
The Red Deer Public School District will have an obligation to enroll annexation-area children. However, Chinook’s Edge may choose to continue to enroll these children as a school of choice.
School busing, however, will change as the city boundary changes. Once land is within the city boundary, the Red Deer Public School District will designate a school to serve each area. If an elementary student is more than 1.6 km away from the designated school, the District will provide bus transportation (yellow school bus).
If a middle school or high school student is more than 2.4 km away from their designated school, the Board will provide transportation services that may include utilizing City Transit. For more information on the public schools and transportation services, please contact the Central Services at 403-343-1405.
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