Woodlands addresses tax arrears and Cost Sharing Agreement

By Ashley Clementovich

Woodlands County slogged through a hefty agenda at its Regular council meeting last Monday evening. While not officially an item on the agenda, the subject of the County’s current tax debt was brought up during the discussion of the Statement of Revenues and Expenditures up until June 21. As of that day, July 2, the County’s tax circumstances were approximately $6.3 million in outstanding arrears. In accordance with FOIP agreements, Interim CAO Gordon Frank kept the names of the companies with the outstanding tax payments in confidence.

“The amount that we have outstanding is something that we really need to figure out where we’re going,” said Councillor Rennie. 

“There is a potential for some of these coming in through the mail late,” reminded Mayor Govenlock, noting that the amount is “tentative; it could change tomorrow morning.” The mayor revealed that one of the owing payments is a significant number and will likely be one that is coming in the mail. “As long as they are postmarked the 30th of June, there would be no penalties,” the mayor added. Mayor Govenlock was firm in his stance to not make irrational decisions until the final number is known. “We will be having a special meeting to look at adjustments,” he finished. 

The infamous Trident Energy is one 2019 payment Woodlands is not expecting to receive. As notices went out earlier this year, Trident’s unpaid amount for 2019 will be added to what was also lost in the 2018 tax year. Mayor Govenlock noted that another company, in a similar situation to Trident, has also left the county with unpaid tax arrears for 2018 and 2019. “It’s a serious number and will require some serious review on the part of council and administration to decide how we are going to compensate for that and make the necessary adjustments.” 

Mayor Govenlock discussed the vulnerability that municipalities face when dealing with oil and gas companies. The mayor and council brought to the government the issue that these companies are not subject to the same arrears collecting rules as commercial and residential patent lands. 

In further development, Woodlands has had a change in its senior management team. The county’s new Chief Financial Officer will begin the position in mid July. “It’s an important position for us at this stage to help make sure that they crunch the numbers right, and they can put forward the analysis council can understand and use in the long range planning to make the adjustments that we’ll have to make. We likely won’t be addressing the matter until about mid July, and that gives us time to firm up the numbers and get our new person in position to basically work with us to find a course of action,” said the mayor.

Later this week, Woodlands County released a statement as part of its new Did You Know? campaign which Mayor Govenlock revealed is meant to, “Help make people aware of the commitment Woodlands has had with the Town.” The document listed the total sum that Woodlands contributed under the Cost Sharing Agreement, breaking down, with each service and amount provided listed, a total of just over $3 million for the 2018 year. The mayor also noted the amount paid in 2018 being three times what was agreed upon in the original contract from 10 years ago which had committed Woodlands to $1 million. According to the document, in the past 10 years, Woodlands has transferred an amount of $23 million as part of the Cost Sharing Agreement.

Mayor Govenlock noted that the document does not include the funding provided to the airport. As the owner of the airport, Woodlands continues to keep the service available on a regional basis accumulating an $800,000 to $900,000 deficit. Mayor Govenlock added that the town contributes $40,000 to the airport despite having twice the population of Woodlands County.

“When we talk about fairness and equity, it’s a one-sided relationship. The failure for the town to take seriously, the need to be fair and reciprocal in these agreements has led to the difficulties that we’re dealing with today,” said Mayor Govenlock. 

“We’re not at all embarrassed by the position that we’ve taken to try to adjust in a much more equitable and sustainable basis than what we’ve seen in the past. We are more than willing to pay our share for the services our residents use but it has to be reciprocal and it has to be fair,” stated Mayor Govenlock.

Further media releases under the Did You Know? campaign can be expected down the line. The next Woodlands County council meeting is scheduled for July 16.