Duane Hicks
FORT FRANCES—Along with a property tax hike, Fort Frances residents can expect modest user fee increases in 2009.
But non-residents could see even higher fees to use town facilities and services.
During a special meeting of the committee of the whole Wednesday, councillors received the 2009 budget summary which indicated an operating forecast shortfall of $537,072—most of which can be attributed to the loss of tax revenue from the reassessment of mill property.
This shortfall represents an overall levy increase of 7.1 percent for residential (or an increase of 3.55 percent for commercial, industrial ,and large industrial) using the 2009 starting tax ratios, or an overall levy increase of 5.4 percent for residential (or an increase of 1.87 percent for commercial, industrial, and large industrial) using revenue-neutral tax ratios.
(There has been no indication yet from the provincial Ministry of Finance as to whether the town will be able to use revenue-neutral tax ratios).
But according to a report from treasurer Laurie Witherspoon, that shortfall will be decreased somewhat with a three percent increase to user fees in the Administration and Finance, Community Services, and Planning and Development divisions, and a variable increase for the Operations and Facilities division.
With these increases, the revised use fees are forecasted to produce extra revenue as follows: Administration and Finance ($1,410), Community Services ($16,632), Planning and Development ($4,725), and Operations and Facilities ($55,528).
This would lower the current shortfall to $481,544—representing an overall levy increase of 6.37 percent for residential using the 2009 starting tax ratios, or 4.85 percent using revenue-neutral tax ratios.
Both Witherspoon and Fort Frances CAO Mark McCaig said council should keep in mind that the shortfall in the operating forecast does not include any anticipated contributions to reserves for capital replacements or new capital projects.
“This is where we’re starting. This is the impact right now,” she noted.
In the face of rising user fees, Mayor Roy Avis and several councillors advised administration to look into further increasing user fees for non-residents to reflect the true cost of paying for services and be more fair to local taxpayers, many of whom are aging and on fixed incomes.
For example, while residents do not have to pay user fees to use the public library, taxpayers shell out about $150 a year each to keep it running. On the other hand, an Alberton resident would pay $55 a year to use the library (who, in turn, gets reimbursed by their own municipality when they pay their taxes).
When both user fees and taxes are increased, town residents suffer for it twice while non-residents do not.
“Where’s the balance?” asked Mayor Avis. “I think we have to go outside the municipality and start to look at the people using the facilities in our community . . . I think we have to come up with a proper program that treats people fairly.”
He added with the loss of industrial assessment here, the whole district has to realize that if they want Fort Frances to continue to deliver services for everyone, they have to contribute their fair share.
But both McCaig and Community Services manager George Bell noted it is a “balancing act,” and care must be taken not to raise non-resident user fees to the point when non-residents stop using the services—ultimately leaving residents having to shoulder even more of the burden.
Bell said since the town increased its non-resident user fees at the library last year, total revenue has dropped.
“There’s no corresponding expenses we can shave off because it’s just a few less people,” he explained. “So the burden to taxpayers goes up because we increased the non-resident rates at the library.”
Clerk Glenn Treftlin also noted non-residents do spend money in Fort Frances when they come here to use services.
Administration was scheduled to meet later Thursday to further review user fees.
The town’s aim is to have the final user fee schedule in place to be implemented by Jan. 1.
(Fort Frances Daily Bulletin)
