The City of Cold Lake proposed a solution to its financial problems to the province last week that would transfer tax assessment on the Cold Lake Air Weapons Range from Lac La Biche County to the City.
City council sent a letter with Base Commander Colonel David Wheeler to the province to change the boundaries to include the bombing range in the City at the Jan. 11 council meeting.
“There is minimal direct access from Lac La Biche into the Cold Lake Air Weapons Range and all revenue generated from municipal taxes goes to Lac La Biche. It only makes sense that this revenue should come to Cold Lake,” said Mayor Craig Copeland in a press release.
The City estimates the additional assessment could add $10 to $12 million a year to City coffers, but, “Our principle is the air weapons range, regardless of assessment, needs to be aligned with 4 Wing,” said Copeland in a phone interview.
Husky, CNRL, Cenovus and other companies operate on the bombing range.
“This opportunity will allow the City to address its infrastructure challenges and also the high property tax. It's a decent step in terms of re-aligning, helping the City deal with its financial viability,” he said.
Lac La Biche County would be no longer viable without the bombing range assessment, said Lac La Biche's Mayor Peter Kirylchuk in a phone interview.
“We can't afford losing the bombing range without getting anything else,” he said. “It certainly will help the municipality of Cold Lake, but Lac La Biche County loses a huge assessment base.”
Wheeler told council at its Jan. 11 meeting about upgrades to the flight line and expressed concern over whether the City would be able to provide services and infrastructure, said the press release.
“We need to see further enhancement to services to the Wing and better value for the funding that is being provided to the City,” Wheeler said.
“I think it's a good idea,” said MLA for Bonnyville-Cold Lake, Genia Leskiw. “4 Wing controls the activity in the bombing range but gets absolutely no financial benefits from the bombing range.”
With planned expansions at 4 Wing, “They need to be able to have some income to be able to deal with all that infrastructure.”
The proposal would deal with what should have been done in the mid-1990's when the province created the City of Cold Lake, said Copeland, adding that he thinks the province will “take a hard look at this and do the right thing.”
Another benefit would be that the City would be able to match provincial and federal grants when stimulus infrastructure programs become available, he said.
The City put the proposal to the province forward two years ago. The province recommended regional mediation, which failed and resulted in the George Cuff inspection of the city. Council rejected all recommendations made by Cuff and blasted the findings of the report.
“Council does not have the appetite to significantly raise taxes further as outlined in the Cuff Report, hence we want to continue working with the province on seeking an alternative solution,” Copeland said in the press release.
