Town council still mulling over curling club’s taxes

FORT FRANCES—With the Fort Frances Curling Club still owing the town taxes to the tune of $74,000, discussion of what council should do to help the club dominated Monday’s budget meeting.
While the mayor and council all agreed they wanted to help out the curling club, and certainly didn’t want the keys to the building turned over to the town, the question was how could the town help the club without setting precedent—and opening the door for other property owners who have fallen behind on paying their taxes.

“I firmly believe we should continue to offer curling as a recreational activity,” said Coun. Rick Wiedenhoeft. “We have to help these guys maintain their managerial ownership.”
But he added the town can’t just forgive the club’s back taxes and let those taxes go unpaid.
Coun. Andrew Hallikas agreed, saying he was worried about opening a “floodgate” for people wanting tax breaks.
“The biggest concern we’ve got is setting precedence,” echoed Mayor Roy Avis. “We have to be very cautious.”
Several members of council said perhaps the town should offer the club a deal where it pays $14,500 for the 2007 tax year, with the town offering bridge financing to pay off its arrears.
This bridge financing would be paid back through a payment plan, by which the curling club could repay the town at a rate it could handle.
This plan possibly would not kick in until the club has paid off its building in three years, or perhaps spread out over 10 years.
But Coun. Tannis Drysdale noted as it stands now, the curling club is expected to end up with only $9,000 in its budget at the end of the year without paying taxes, wondering how the club will get the money to pay the town $14,500 each year.
“They’ll have to get creative,” said town treasurer Laurie Witherspoon. “It puts the ball back in their court to be creative with their fundraising.
“It’s easy to ask council to help them out, but they have to learn to help themselves,” she added.
Coun. Wiedenhoeft noted perhaps the club should ask its members to each write a cheque for $200. “They could write off their debt like that,” he remarked.
“Really, this isn’t our problem. I’m sympathetic, but perhaps the club should go to the membership and try to come up with ideas,” said Coun. Hallikas. “I’d like to see them come up with a solution to their problem.”
The committee of the whole agreed Monday to arrange another meeting with the curling club’s board to further discuss an agreement to settle the tax arrears.
The curling club’s board had proposed last week that the club pay the town $1,000 a month for the seven months of the year it is open. Under its current assessment, the club pays about $2,000/month.
With respect to its arrears, the board said it has paid three of four tax instalments for 2004, amounting to $21,000, and that the last payment should be waived.
For 2005 and 2006, the board is proposing to pay $7,000 for each year immediately—equalling a sum of $14,000.
If council were to agree to this proposal, it would mean a total shortfall of $50,464.31 for the town for the tax years 2004-06.
In 2007 and future years, the shortfall to the town would be about $14,500 plus any annual levy increases (this amount is in anticipation that the curling club applies for the 40 percent charitable rebate each year).
Altogether, the total budget impact for 2007 would be nearly $65,000.