Published on September 17, 2019

Preparing for Prosperity: Understanding the Municipal Utility Corporation

Who

  • The City of St. Albert is exploring the potential to provide non-traditional utility services (alternative servicing) to residents and businesses.
  • Alternative servicing involves the utilities of the future, which have the potential to provide ratepayers (and taxpayers) with benefits that would be achieved through new lines of business that generate new sources of revenue.
  • Council would decide how these benefits would be used – possibilities include lower tax increases, maintaining levels of service, or funding for Repair, Maintain, Replace or Growth capital projects.
  • The City would still be able to partner with other governments, organizations or private companies to provide utility services.

Council meeting with Executive Leadership

Councillors meeting

What

  • A Municipal Utility Corporation (MUC) is one of the ways Council could choose to deliver utility services to residents and businesses.
  • Council would determine the rates a MUC would charge to deliver utility services.
  • The City is working with an external management consultant, retained through the public procurement process, to develop a business plan and market impact assessment for the potential MUC, which will be presented publicly and debated by Council.

Where

  • The potential Municipal Utility Corporation (MUC) would provide status quo utility services to existing residents and businesses within St. Albert, would look for more cost-effective ways to manage bulk commodities, such as solid waste, and look at decentralized utilities, as opposed to traditional centralized utilities, in new developments.

When

  • The City will prepare a report on the potential Municipal Utility Corporation (MUC) in the fall of 2019 for Council to consider.

Why

  • The City is looking at new ways to reduce cost, increase revenues, and incent growth and development.
  • Alternative servicing is an emerging field that uses innovative solutions to address age-old problems. Alterative servicing can provide the City with new revenue streams that minimize the need for tax increases to deliver the programs and services important to residents and businesses in St. Albert.
  • This program would serve to consider some streams of commodities that, in the past, have been a burden and cost the City funds to manage and turn these commodities into revenue streams.

Related Pages

Last edited: November 27, 2019