Town council plans vote on interim tax levy

As the town continues to work on its 2004 budget, council will vote tonight both to institute an interim tax levy and borrow money to meet current expenditures.
Mayor Dan Onichuk said yesterday that the interim levy is necessary to keep money flowing into the town’s coffers and maintain operations as they are.
“Because we don’t have the budget complete, we don’t know what the tax increase will be for this year,” he remarked. “At this point, it may be a few months before we know that.
“In the meantime, the levy allows for some money to come in, which we need to keep going.”^Mayor Onichuk noted the previous council didn’t do enough work on the 2004 budget prior to the November election.
He also said while management and administration have been working hard to identify their operating costs, establish realistic budgets, and take into account recommendations made in a corporate audit last month all at the same time, the lack of a permanent CAO hasn’t helped.
“We really should be starting the budget process in September and be done in December. Next year will be a different story,” he noted.
The interim tax levies are not tax increases, stressed tax collector Ed Katona, but simply interim rates which enable the town to send tax bills to property owners as council determines if there will be any increases necessary when the 2004 budget is finalized.
The interim rates remain the same as last year. For instance, an interim tax rate of 8.15 percent will be imposed and levied on the whole of the assessment for real property in the residential classes according to the last revised assessment roll.
The interim rate for farmland is 2.03 percent, commercial taxable property is 28.6 percent, and commercial vacant is 20 percent.
These bills will be mailed out shortly if council passes the bylaw at tonight’s regular meeting.
Fifty percent of the levy shall become due and payable on Feb.
27, with the balance due and payable on March 31.
The interim tax levy is permissible under the Municipal Act, 2001.
Mayor Onichuk added he doesn’t know yet how severe a tax increase for 2004 may end up being, adding the recent corporate audit likely will play a role.
For instance, it recommends increased user fees (garbage bag tags, parking meters, and water meters) as possible avenues of increased revenue—and thus less tax increases—for the town.
This will be discussed more at the council meeting Jan. 26, he noted.
Also tonight, council will vote on whether to authorize temporary borrowing of up to $4 million from the CIBC to meet the town’s current expenditures.
“We need to borrow that to get through the first part of the year,” said Mayor Onichuk.
“It’s the normal course of business.
If we start a new year with no budget in place, we have to do something to keep operating at the same level as we’ve been,” he added.
“We’d like to be able to take that money from reserves, but we’re just not in that position.”^In related news, there will be a public meeting at 7 p.m. regarding the cancellation of taxes and interest totalling $14,410.93.
This loss of taxes for the town is a result of Section 357 (1) of the Municipal Act, which allows ratepayers to make applications for changes in assessed values of their properties.