Presentation on theme: "CMG 101 A high level overview of the CMG CMG – how big is the fund? Four Components – the basics Budget Considerations – the key things to remember."— Presentation transcript:
CMG 101 A high level overview of the CMG CMG – how big is the fund? Four Components – the basics Budget Considerations – the key things to remember The End
Comprehensive Municipal Grant $807,500 increase to total fund each year until 2012 $14,960,510 in total fund (2010) How much each municipality receives is determined by a formula The CMG formula is designed to allocate funds to the municipalities that have a lower ability to generate tax revenue in relation to other municipalities.
Four Components of CMG Base Amount + Assessment Equalization + Local Cost of Service + Remainder of Fund CMG
Base Amount Share of the Base Amount is equal among municipalities outside Whitehorse
Assessment Equalization Each year there is a territorial average assessment of property value If your municipality’s property value is less than the territorial average you will receive an allocation in this part of the CMG. The lower your assessed municipal property values are in relation to the Yukon average, the larger the amount allocated in your CMG per dwelling
Assessment Equalization Conversely, the higher the assessed value of your properties the lower the amount allocated in your CMG per dwelling.
Local Cost of Services This component factors in how much more the costs of electricity, fuel and goods and services are relative to Whitehorse It also factors in how big your population is compared to the whole Yukon This component typically has the least influence on your total CMG
Remainder of Fund After the other components of the grant have been provided for, the “Remainder” is split in two One part is apportioned based on the municipality’s population compared to the total Yukon population The other part is apportioned based on the # of dwelling units in the municipality compared to the # of dwelling units in all municipalities. Your allocated “Remainder” can be a significant factor of your total CMG. The principle is that the more dwellings/people a municipality is required to service the more it costs to provide those services
Budget Considerations When your property assessments go up: Your CMG MAY go down if your ability to generate tax revenue has stayed the same or improved Your Grant in Lieu of taxes MAY go up depending on why your assessment figures went up i.e. new school in town The impact on your CMG will be delayed by two years i.e. assessment year vs. taxation year
Budget Considerations Municipalities with more dwellings and more people have higher costs and therefore receive a relatively greater portion of the total CMG fund. Your CMG is likely not constant each year: You can’t control what happens in other communities the CMG is always redistributed relative to other communities’ population, assessments, dwelling numbers etc. Given the $807,500 increase until 2012 – there have been situations where the CMG does not increase for a municipality because of growth in the town.
Thank you for keeping your eyes open! For a detailed description of the CMG Formula please contact your Community Advisor: Shannon WrightFaro, Carmacks Laura Prentice Teslin Jerome McIntyreWatson Lake, Haines Junction Caitlin KerwinMayo, Dawson