Town council is expected to vote on the 2004 budget in principle at its regular meeting Monday night, with the budget to be passed as a bylaw at the May 10 meeting.
But what remains to be seen is which of two directions council will go.
One possible route will see a tax increase of 14.67 percent for residential, multi-residential, pipeline, and farmland properties, with a hike of 1.9 percent for commercial and 7.34 for industrial.
The second alternative on the table would see 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.
At a special committee of the whole meeting late Thursday afternoon, councillors once again seemed to differ on whether the town should tax the commercial sector at all.
“If the town is experiencing financial difficulty, shouldn’t all classes contribute to solving that problem?” remarked Coun. Struchan Gilson.
“As a resident, it doesn’t seem unreasonable to me that commercial should see an increase too, albeit one less than the one for residential,” he added.
But Coun. Roy Avis stressed commercial taxes are too high and that business owners have been paying more than their share for years.
He added it should be recognized that with the Internet, more and more merchants have been doing business abroad—and these businesses have to remain competitive beyond the local scene.
Coun. Neil Kabel said he’s been in contact with someone interested in starting a 7,000 sq. ft. business here, but that an increases in commercial taxes could be factor of whether they start up at all.
Coun. Todd Hamilton replied any business that wants to start up here should not consider taxes alone, but everything else the town has to offer (such as cheap electricity, infrastructure, and scenic locale).
Fort Frances CAO Mark McCaig added any potential investors should contact him and he’ll “give them some figures to chew on.”
After a multitude of budget meetings over the past four months, McCaig asked councillors if they finally were ready to vote on the 2004 budget at Monday night’s regular council meeting.
“I’d like to settle on it,” said Coun. Kabel.
“Yeah,” said Mayor Dan Onichuk.
“I’m ready to go,” said Coun. Hamilton.
“We have to make a decision and get this on the road now,” said Coun. Gilson.
“Has management cut it to the bone?” asked Coun. Avis. “If so, I’m ready.”
< *c>Comparative assessment
Councillors on Thursday also discussed figures brought forward by town treasurer Peggy Dupuis comparing what other regional municipalities pay in taxes, as requested after a committee of the whole meeting last Thursday.
What the numbers revealed was that currently, “the potential for Fort Frances to raise money through tax dollars is severely limited,” according to McCaig.
This is due to the fact that, compared to Dryden specifically, property values here are, on average, assessed lower than they are there while taxes are higher.
In fact, the total difference in assessed property value between Dryden and Fort Frances is to the tune of $100 million.
Using a base figure of $100,000 for different sectors (residential, commercial, etc.), Dupuis discovered that, on average, a home in Dryden is assessed at a higher value than a comparative one here.
“I’ve got a tough time seeing a home in Dryden and seeing one here, and seeing a $20,000-30,000 difference in assessment,” said Mayor Onichuk.
Likewise, taxes are, on average, lower for businesses in Dryden, but Mayor Onichuk was quick to point out the “price of operating a business is a lot more than taxes.”
He cited Fort Frances Power Corp. delivering power to its customers at the lowest rates possible here is an equalizer for the higher taxes.
As to exactly why properties here are assessed at a lower amount than elsewhere remains to be something the town will find out.
Coun. Roy Avis said the previous council had hired consultant Peter West to find this out a year-and-a-half ago, after a study by the Municipal Tax Equity Consultants showed “tremendous inequities in commercial assessments” here.
But as to what the end result of that work was, Coun. Avis said he’s never found out.
“We have to find out what happened? Find out what the results were, and do something with that,” vowed Mayor Onichuk.
“This is sending up all sorts of red flags,” said McCaig.
< *c>Point kiosk
Also Thursday, councillors directed Operations and Facilities manager Doug Brown to put an ad in the newspaper requesting any expressions of interest to run the vacant Pither’s Point campground office building this summer.
It was agreed it is too late to include the campground office as part of the tender to run Sorting Gap Marina this summer, so it will be advertised on its own, said councillors.
“If we get none [no expressions of interest], bank it until next year,” said Coun. Hamilton. “If we get even one, let’s sit down and talk about it.”
The idea to have an entrepreneur utilize the office, which the town opted not to have manned by summer students as a cost-saving measure this year, was brought forward by Mayor Onichuk earlier this month.
The mayor noted yesterday that while it might seem a little late to advertise now for someone to run it all summer, it couldn’t hurt to see if someone just wanted to do it for a couple months as a sort of trial run.
“If they get if for July and August, and it works out for them, great. Then, maybe they’ll try it again next year,” echoed Coun. Hamilton.
The Pither’s Point campsites will open May 15.
Fort Frances Times
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