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CMG 101

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)

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CMG 101

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  1. 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

  2. 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.

  3. Four Components of CMG Base Amount + Assessment Equalization + Local Cost of Service + Remainder of Fund CMG

  4. Base Amount • Share of the Base Amount is equal among municipalities outside Whitehorse

  5. 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

  6. Assessment Equalization • Conversely, the higher the assessed value of your properties the lower the amount allocated in your CMG per dwelling.

  7. 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

  8. 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

  9. 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

  10. 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.

  11. Thank you for keeping your eyes open! For a detailed description of the CMG Formula please contact your Community Advisor: Shannon Wright Faro, Carmacks Laura Prentice Teslin Jerome McIntyre Watson Lake, Haines Junction Caitlin Kerwin Mayo, Dawson

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