Residents facing 1.1% tax hike

Residential taxpayers likely will be looking at a 1.1 percent tax increase after town council approves the 2009 budget at its June 8 meeting.
During a regular budget meeting yesterday afternoon, council voted in favour of a long-term debt financing scenario outlining the following levy increases (shown here with how much each property class will be paying per $100,000 of assessment):

•Residential—1.1 percent ($1,863.78 per $100,000 of assessment);
•Multi-residential—1.2 percent ($4,350.20 per $100,000 of assessment);
•Commercial—0.3992 percent ($5,356.39 per $100,000 of assessment);
•Industrial—0.4762 percent ($5,924.35 per $100,000 of assessment);
•Large industrial—0.4987 ($10,319.06 per $100,000 of
assessment); and
•Pipeline—0.847 ($6,089.75 per $100,000 of assessment).
For the residential class, the levy increase equals an extra $20.33 per $100,000 of assessment over the 2009 notional base rate of $1,843.45.
The notional base rate is last year’s levy per $100,000 of assessment, modified both downwards by the 2009 education levy decrease and upwards by reassessment.
For example, the actual 2008 levy per $100,000 of assessment for the residential property class was $1,848.71—a difference of $15.07 from the proposed 2009 rate of $1,863.78.
But the 2009 notional base rate for residential is $1,848.71 minus a $12 education levy decrease and plus a $6.74 reassessment increase.
For multi-residential, it’s an extra $51.68 per $100,000 of assessment while for commercial, it’s an additional $21.30.
For the industrial class, it’s another $28.08 per $100,000.
For large industrial, it’s $51.21 more while for pipeline, it translates to an additional $51.15 per $100,000 of assessment over the 2009 notional base rate for that class.
In addition to the tax increases, how much property owners actually pay this year may be slightly higher or lower than what they paid last year due to the recent MPAC reassessment.
For instance, if someone’s property was assessed at $100,000 previously and now is worth $120,000, their taxes obviously will be correspondingly higher.
The 2009 operating budget is $12,827,036 (including the education levy and payments in lieu) while the total capital budget is $15,272,758.
Most of the cost of the capital projects are funded through various grants or reserves, with $1,667,819 to be funded through long-term debt.
In turn, this long-term debt and interest is paid off over the next 10 years through the aforementioned tax increases.
While 12- and 15-year long term debt financing scenarios also were presented by treasurer Laurie Witherspoon at yesterday’s meeting, Mayor Roy Avis and the rest of council favoured the 10-year plan, citing that although interest rates are low now, they eventually will rebound and the sooner the town get rid of the debt, the better.
The entire 20099 budget will be explained at a June 8 public meeting, after which time, council will vote on bylaws to pass the 2009 budget estimates and accompanying tax rates to support the municipal levy.
In related news, the capital budget includes several projects that may or not happen this year, depending on whether the town’s applications to the “Building Canada” fund are successful.
While one of these projects, the new library and technology centre, may yet receive such funding and the project given the green light by council to proceed this summer, the town’s $592,000 share of the cost would roll over into the 2010 budget and not impact the 2009 budget’s long-term debt portion.
Other funds, such as the Ministry of Culture’s grant for $1.6 million, would be used first to pay for the new library, which would not be completed by the end of the year.
Since the project would carry over into 2010, the town’s portion would be reflected in that budget, not this year’s.
Community Services manager George Bell reminded council that if they decide to change any of the library plans, it will have to be totally redesigned and re-tendered, pushing the whole project into 2010.