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Oil prices in decline again. A ridiculous discount on these prices to get Canadian bitumen to market. Although our big oil companies (Suncor, CNR, Husky) can still make good profits even under these conditions because they have integrated operations. I fear there may be further casualties among the small/medium producers, drillers and oil service companies.
 
JonnyCanuck said:
Oil prices in decline again. A ridiculous discount on these prices to get Canadian bitumen to market. Although our big oil companies (Suncor, CNR, Husky) can still make good profits even under these conditions because they have integrated operations. I fear there may be further casualties among the small/medium producers, drillers and oil service companies.
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Yup. Double dip recession. FUBAR'd.
 
When a developer builds a new community, they build everything "within" the community, essentially all the roads and pipes, etc... The levies are paid on a per acre basis to The City to pay for all of the regional infrastructure that the new community plugs into, so skeletal roads/interchanges, sewage treatment plants, rec centres, major water trunks, etc.... Hence "off-site". Here is a bit more of a better explanation:
https://calgary.ca/CA/city-manager/...-Us-bkup-pages/OurFinances-off-site_levy.aspx
 
Well I've heard talk that we could get 1-2 billion for Enmax, Not sure how accurate that is. I believe I saw that Enmax paid $40 million to the city in dividends last year. But the question I have about that is would making Enmax private cause an increase in utility costs that make up for the cash we get. Also would council simply take the 1 billion, but raise taxes to cover the annual dividend anyway.
 
JoeUrban said:
Well I've heard talk that we could get 1-2 billion for Enmax, Not sure how accurate that is. I believe I saw that Enmax paid $40 million to the city in dividends last year. But the question I have about that is would making Enmax private cause an increase in utility costs that make up for the cash we get. Also would council simply take the 1 billion, but raise taxes to cover the annual dividend anyway.
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In theory, no. That is all provincially regulated.

With Enmax's financials:
1542317080736.png


But that isn't the whole story, there is the IFRS statement:
1542317120740.png

1542317282363.png


Regular businesses you can usually sell for 10x net earnings based on IFRS numbers. Regulated utilities, 20-30x. Depends on what preferential tax treatment are there due to current public ownership, and if Enmax would then have to pay the city ongoing for spaces under, over and on public land.

So $1 to $3 billion.
 
$119.00 per household over the course of the year is fair. I'm not happy about it, but the city does need to find that shortfall somewhere.

On a side note, in my old hometown of Ottawa people pay substantially higher taxes for residential homes. My parents are paying over $500 monthly (almost double what I pay) for their place which is smaller than mine. My sister pays around the same for her biggish type place in the burbs. I know people won't be happy about a tax increase, but here in Calgary we have been paying low for a long time. It was bound to start coming up eventually.

Social Justice said:
That's what the article said. $119 increase over the year per residential household. Including fees.

I wonder if there is any other ways the city can generate more income.

Charge $5 to enter downtown during rush hour?
Sell off a few corporate properties & businesses?

https://assets.documentcloud.org/documents/2679141/Calgary-Map.pdf
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JoeUrban said:
Well I've heard talk that we could get 1-2 billion for Enmax, Not sure how accurate that is. I believe I saw that Enmax paid $40 million to the city in dividends last year. But the question I have about that is would making Enmax private cause an increase in utility costs that make up for the cash we get. Also would council simply take the 1 billion, but raise taxes to cover the annual dividend anyway.
Click to expand...

What about selling off low income housing?

Price of residential rent is declining.

https://www.rentfaster.ca/ab/calgary/
 
I've heard the the city was looking to sell off their golf courses. They could get some money for it, but also it would get rid of a cost at the same time.

The easy but unpopular choice is to raise taxes. I'm going to get roasted for this, but IMO $119.00 per year is decent but not enough, they could double it to $240.00, and that's still only an average of $20.00 per month per property. Still lower than other cities.
 
JoeUrban said:
Well I've heard talk that we could get 1-2 billion for Enmax, Not sure how accurate that is. I believe I saw that Enmax paid $40 million to the city in dividends last year. But the question I have about that is would making Enmax private cause an increase in utility costs that make up for the cash we get. Also would council simply take the 1 billion, but raise taxes to cover the annual dividend anyway.
Click to expand...
I'd like to see the city keep Enmax and figure alternate ways to fill in the shortfall. Raising taxes can be part of it, combined with cutbacks here and there.
 
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