Duane Hicks
A review by the Rainy River District Social Services Administration Board of its formula for the apportionment of costs could have a major impact on the Town of Fort Frances’ 2010 budget.
At its March 10 meeting, DSSAB passed a resolution to review the funding formula after a request from the Township of Atikokan to switch formulas.
Now district municipalities and unincorporated areas are being asked to indicate their support for one of three formulas, DSSAB rep Coun. Sharon Tibbs reported at a town budget meeting yesterday.
The formulas being presented include:
1). Unweighted assessment;
2). Weighted assessment using the weighted average tax ratio by class for DSSAB, including payments in lieu (PILs); and
3). Weighted assessment, including PILs, using municipal tax ratios for municipalities and weighted average tax ratios for unincorporated areas.
While Atikokan is in favour of Option #3, town council said yesterday it wants to stick to Option #2, which is the current formula and which council feels is the most fair for district municipalities.
Going with Option #3 would drive up Fort Frances’ annual payment to DSSAB from $1,831,471.17 to $1,940,467.39—a difference of $108,996.22.
It also would increase annual payments for Lake of the Woods, La Vallee, and Morley, but decrease payments for Alberton, Atikokan, Chapple, Dawson, Emo, and Rainy River.
Based on the current 2010 operating and capital budget, going with Option #2 would mean a total overall levy increase of 2.313 percent, or $3.57 per $100,000 of assessment for residential taxpayers.
But going with Option #3 would mean a total overall levy increase of 3.6616 percent, or $24.86 per $100,000 of assessment for residential taxpayers.
The net dollar increase is much higher than that for Option #2 because there is a levy restriction for commercial and industrial classes.
The town only can pass on half of the levy increase to them, so the rest gets put onto residential and multi-residential—resulting in a taxation shift.
The DSSAB has asked all of the municipalities to pass a resolution indicating their support for one formula option prior to its April 15 meeting.
Once resolutions are received from all councils and unincorporated representatives, DSSAB then will calculate support for each option.
If one receives double majority support and there is a change, the municipalities’ shares will be adjusted accordingly.
