Council approves interim tax levy

As the town continues to work on its 2004 budget, council agreed to institute an interim tax levy and also borrow money to meet current expenditures at Monday night’s regular meeting.
Mayor Dan Onichuk said the interim levy is necessary to keep money flowing into the town’s coffers—and maintain operations as they are—as council still doesn’t know exactly what the tax increase will be for 2004.
The mayor noted the previous council didn’t do enough work on the budget prior to the November election.
He also said that while town 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,” Mayor Onichuk vowed.
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 while council determines if there will be any increases necessary when the 2004 budget is finalized.
Treasurer Peggy Dupuis noted at Monday’s committee of the whole meeting that implementing interim tax levies was a procedure that has been done in the past—and is permissible under the Municipal Act, 2001.
The interim rates remain the same as those from 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.
These bills will be sent out shortly. Fifty percent of the levy shall become due and payable on Feb. 27, with the balance due and payable by March 31.
Mayor Onichuk said he doesn’t know at this point how severe a permanent tax increase for 2004 may end up being.
He added the recent corporate audit likely will play a role, with its recommendations for increased user fees (such as 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 council’s next meeting Jan. 26, he noted.
Also Monday, council voted to authorize temporary borrowing of up to $4 million from the CIBC to meet the town’s current expenditures.
This action also is allowed under the Municipal Act, 2001.
And at a very brief public meeting Monday, Katona noted the town is seeing a 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.
These changes can be due to:
•building demolition;
•gross or manifest errors that are clerical or factual in nature (including transposition of figures and typographical error);
•land becoming exempt from taxation;
•land becoming vacant after the return of the assessment roll; or
•repairs or renovations to the property preventing the normal use of the property for a period of at least three months during the year.
The loss of the $14,410.93 is due to various residents being granted such changes in assessment.
Also at Monday night’s meeting, council authorized the recommendation of the Administration and Finance executive committee to write off the balance of Watten Township’s 9-1-1 account in the amount of $7,413.96.
As reported last month, the unorganized area did not pay its bill for the local 9-1-1 service it was receiving through an agreement with the town, leaving the town no choice but to cut off those residents.
They now will receive 9-1-1 service through Bell’s Northern Ontario operator.
And council also received the bylaw enforcement department’s parking bylaw violations report for December, 2003. It showed 30 tickets issued by bylaw officers and 11 by the OPP for a total of 41 for the month.
For the year, the bylaw department issued 971 tickets while the police handed out 145.