Duane Hicks
Fort Frances town council is getting closer to finalizing its 2010 budget, and during a meeting yesterday started looking at various tax scenarios, including a possible 2.4 levy increase for residential taxpayers.
However, due to a decrease in the education levy, as well as changes in the assessed values for various property classes, this year some classes will see an increase in levy but a decrease in the amount of dollars paid.
Which tax scenario council decides to go with all will depend on whether there is a change in the funding apportionment formula for the District Social Services Administration Board next week.
Depending on what district municipalities and unincorporated areas want, the DSSAB board will decide whether to change the formula at a meeting April 15.
If the formula remains status quo, council has looked at two possible scenarios to balance the budget.
The first scenario would result in the following:
•a 2.4 percent levy increase for residential, which equals a net tax dollar decrease of $0.13 per $100,000 of assessment;
•a 2.6 percent levy increase for multi-residential, which equals a net tax dollar increase of $16.64 per $100,000 of assessment;
•a 0.96 percent levy increase for commercial, which equals a net tax dollar decrease of $592.99 per $100,000 of assessment;
•a 1.04 percent levy increase for industrial, which equals a net tax dollar decrease of $99.61 per $100,000 of assessment;
•a 1.17 percent levy increase for large industrial, which equals a net tax dollar decrease of $875.27 per $100,000 of assessment; and
•a 2.04 percent levy increase for pipeline, which equals a net tax dollar decrease of $576.60 per $100,000 of assessment.
A second scenario using alternative commercial/industrial tax ratios would result in the following:
•a 2.4 percent levy increase for residential, which equals a net tax dollar decrease of $2.33 per $100,000 of assessment;
•a 2.61 percent levy increase for multi-residential, which equals a net tax dollar increase of $11.04 per $100,000 of assessment;
•a 0.967 percent levy increase for commercial, which equals a net tax dollar decrease of $594.13 per $100,000 of assessment;
•a 1.04 percent levy increase for industrial, which equals a net tax dollar decrease of $77.75 per $100,000 of assessment;
•a 1.17 percent levy increase for large industrial, which equals a net tax dollar decrease of $835.40 per $100,000 of assessment; and
•a 2.04 percent levy increase for pipeline, which equals a net tax dollar decrease of $582.14 per $100,000 of assessment.
In both of these scenarios, the town is looking to generate $224,286 to both pay for an operating budget deficit of $107,054 and $117,232 for the principle and interest on long-term debt.
However, if the DSSAB formula for the apportionment of costs changes, town council was presented with a tax scenario that would have much more of an impact on some local taxpayers.
This scenario would see:
•a 3.58 percent levy increase for residential, which equals a net tax dollar increase of $21.16 per $100,000 of assessment;
•a 3.89 percent levy increase for multi-residential, which equals a net tax dollar increase of $70.78 per $100,000 of assessment;
•a 1.43 percent levy increase for commercial, which equals a net tax dollar decrease of $570.82 per $100,000 of assessment;
•a 1.55 percent levy increase for industrial, which equals a net tax dollar decrease of $70.38 per $100,000 of assessment;
•a 1.74 percent levy increase for large industrial, which equals a net tax dollar decrease of $821.97 per $100,000 of assessment; and
•a 3.03 percent levy increase for pipeline, which equals a net tax dollar decrease of $523.02 per $100,000 of assessment.
In this scenario, the town would generate $333,282 to pay for an operating budget deficit of $216,050 (which is more than $100,000 higher than the other two scenarios because of the change in DSSAB apportionment costs) and $117,232 for the principle and interest on long-term debt.
If the funding formula does change, Mayor Roy Avis said town council will have to take another hard look at the budget to find savings and trim it back to the two percent levy range.
