Town council passed the 2004 budget in principle Monday night, opting for tax hike of 14.67 percent for residential, multi-residential, pipeline, and farmland properties, along with an increase of 1.9 percent for commercial and 7.33 for industrial.
Mayor Dan Onichuk and Couns. Tannis Drysdale, Todd Hamilton, and Struchan Gilson voted in favour of the budget, but Couns. Roy Avis and Neil Kabel were opposed.
“I think the taxation to our commercial sector far exceeds the range of fairness now,” Coun. Kabel said Tuesday. “I felt it would fair to leave any increases for commercial out of this year’s budget.”
While he admitted the 1.9 percent hike might not amount to much for a small business such as his own (East End Confectionery), it would for one already paying $100,000 in taxes a year.
He noted other changes—such as requiring small businesses to enter separate service contracts for garbage pickup as opposed to having the option to use “bag tags” (which, for his store, would mean the difference between spending $18 a week and $2 a week)—are an additional cost to business community this year.
When added to the tax increase, coupled with having to compete with Wal-Mart, it’s a bitter pill to swallow.
Coun. Avis declined to comment at this time, opting instead to wait until the budget is passed as a bylaw at council’s May 10 meeting.
“I suppose the commercial sector has to share some of the burden,” said Fort Frances Chamber of Commerce president Alan Tibbetts. “But it has to be pointed out the business owners are paying the [14.7 percent] increase in taxes on their homes, too.
“They’re getting hit twice,” he argued.
“A lot of our businesses are small. Every one percent makes a difference,” Tibbetts added. “I know they [council] tried to minimize it [the commercial tax increase]. But given the current situation downtown, it’s not helpful.”
At best, Tibbetts said, he’s thankful the tax increase wasn’t any higher.
Russ Ling, chairman of the local Business Improvement Association, declined to comment.
As first reported in Tuesday’s Daily Bulletin, while the tax rates approved Monday night were for a 14.67 increase for residents, the net tax increase actually is 11.7 percent over last year after education taxes are factored in.
The second alternative council was considering, but opted not to choose, would have seen an increase of 15.8 percent for residential, multi-residential, pipeline, and farmland properties, a 7.7 percent hike for industrial, and no tax increase for commercial.
Mayor Onichuk noted Monday night the end result was a far cry from the 67.5 percent bandied about months ago, and that council and management “have come a long way” in getting the 2004 budget completed.
“An 11.7 percent increase is a bit taxing on people, no pun intended, but we’re not going to be coming back looking for a 10 or 11 percent increase next year unless some catastrophic thing happens in the Town of Fort Frances,” the mayor added.
“We need to move ahead. I think council agrees the process doesn’t end here,” he stressed. “We have dates set with [the Ministry of] Municipal Affairs to set a strategic plan.”
Mayor Onichuk noted council and management will have to continue to look to “streamline” operations and make efficiencies where they can, particularly for the purposes of building up reserves to use for capital projects.
“There’s a lot of work to be done out there, capital-wise,” he remarked, adding road repairs were a chief concern.
“I think the council and administration and management have done a lot of work. And I appreciate it,” the mayor added.
Fort Frances Times
Local News from Across the Rainy River District
