Duane Hicks
Fort Frances council has finalized the 2010 budget, with residential taxpayers likely to see a tax levy increase of 3.07 percent.
But in terms of actual dollars, that increase won’t be as big as it sounds, explained treasurer Laurie Witherspoon.
She noted that since the tax rate used to calculate how much people pay is less than half that, the net tax dollar increase over last year actually is just $8.73 per $100,000 of assessment.
Last year, residential taxpayers paid $1,863.77 per $100,000 of assessment.
This year, they will pay $1,872.50 per $100,000 of assessment.
Due to a decrease in the education levy, as well as changes in the assessed values for various property classes, some classes (commercial, industrial, large industrial, and pipeline) will see an increase in levy but a decrease in the amount of dollars paid.
The levy increases will be as follows:
•3.07 percent for residential, which equals a net tax dollar increase of $8.73 per $100,000 of assessment;
•3.28 percent for multi-residential, which equals a net tax dollar increase of $39.39 per $100,000 of assessment;
•1.21 percent for commercial, which equals a net tax dollar decrease of $582.66 per $100,000 of assessment;
•1.31 percent for industrial, which equals a net tax dollar decrease of $62.15 per $100,000 of assessment;
•1.47 percent for large industrial, which equals a net tax dollar decrease of $807.17 per $100,000 of assessment; and
•2.55 percent for pipeline, which equals a net tax dollar decrease of $550.27 per $100,000 of assessment.
With this scenario, the town is looking to generate $314,500 to both pay for an operating budget deficit of $197,270 and $117,232 for the principal and interest on long-term debt.
The operating deficit currently is $130,044 but council opted to include an extra $67,226 in case operating costs go up after contract negotiations with firefighters and town staff are finalized.
However, the budget does not include an extra $100,000 the town may need if the Rainy River District Social Services Administration Board ends up changing its apportionment funding formula.
As previously reported, DSSAB is in the process of deciding whether to change the formula, which determines how much certain municipalities and unorganized areas pay for social services.
If the formula remains status quo, Fort Frances will keep paying its current portion.
If the formula changes, the town will pay more.
Council accepted the budget with a 6-1 vote last night, with Coun. Ken Perry voting against it.
The budget will be presented at a public meeting on Monday, June 14, at which time it also will come forward as a bylaw for council to pass.
