A look at Jasper's finances following last summer's wildfire

Jasper faces tax revenue hit Jasper faces economic setbacks from extensive wildfire, putting a multi-million dollar hit on tax revenue. Jeremy Thompson reports.

Jasper is facing a major budget crunch in the wake of last summer's wildfire.

The fire burned or damaged one-third of the buildings in the townsite, putting a multi-million-dollar dent in tax revenue.

"The disaster is something that's going to have long-lasting repercussions," said Bill Given, Jasper's chief administrative officer.

"The municipalitiy's revenue will take a significant hit for a number of years going forward, until properties are rebuilt."

Given estimates the municipality will lose out on more than $9 million in revenue in the next two years in part because fewer residents and businesses are paying property taxes or utility fees.

"In the absence of any financial stabilization, the costs of providing municipal services would essentially shift to all the remaining properties."

Revenue is one problem and expenses are another. Under the Disaster Recovery Program the province enacted three years ago, municipalities are now responsible for 10 per cent of natural disaster costs.

Jasper's share is projected to be more than $7 million.

Town staff say paying just this year's portion would require a 40-per-cent tax increase for Jasperites.

"I didn't anticipate what happened to Jasper, I don't think very many people did, but now that it's here we're doing our best to help," Municipal Affairs Minister Ric McIver said.

McIver said tax relief is on its way for Jasper in the form of 250 temporary modular homes the province promised in October. The government is still ironing out lease agreements with Parks Canada.

"When we do that, Jasper knows that they will get some tax relief."

The rentals will start generating property taxes once people move in. It's not clear whether it will be enough to make up the multi-million-dollar shortfall.

For now, Jasper's property taxes are set to go up 4.5 per cent next year, which was the plan before the fire.