BSRA moves forward for Local Tax Reform
Inequity of Bluewater Taxes & Services
Tax Facts
The property tax burden has
continued to shift as a result of the pro vincial system of “current
value assessment” (CVA):
- Residential taxes now represent 85.4% of the total, (vs.
farmlands, 7.8%; and all other classes, 6.9%).
- Over the past 6 years, residential taxes in the W ards of Hay /
Stanley West have increased by 24.0%, vs. only 9.8% for the 4 inland
wards combined.
- 42 cents of every tax dollar for every Bluewater expenditure,
County and education levies come from Hay / Stanley West.
As a result of the 2008 reassessment, the inequity will get w orse.
From 2009-2012, CVA in Hay / Stanley West will increase by 25.2%, vs.
only 7.6% for the 4 inland wards. Assessment rolls confirm that
lakefront properties bear the brunt of these changes with their taxes
significantly higher than larger and more elaborate inland residences.
Road Service Inequities in the Wards of Hay West and Stanley West:
The majority of roads are neither assumed nor maintained by the M
unicipality.
- Most road surfaces are gravel.
- Few of the assumed roads are paved.
For many subdivisions accessed by unassumed roads, the reimbursement
availab le through the Bluewater Road Grant program does not cover all
the costs associated with maintaining the roads. As a result, a
significant portion of shoreline residents are required to provide funds
additional to their taxes to maintain the road s accessing their
residences. By contrast, in the other 5 wards all residence-access roads
are assumed and maintained by the Municipality. As a result, residents
are not required to provide additional funds beyond their taxes. With
respect to the surface of roads accessing residences, streets in the
village wards o f Bayfield, Hensall and Zurich are all paved. In the
rural wards of Hay East and Stanley East, the majority of residents live
on north-south roads, most of which are paved; Most gravel surfaces are
on sparsely-populated east-west roads. Simply put, those that pay the
highest taxes get the least service.
BSRA Submission to Bluewater Council
At the 2009 BSRA Annual Meeting, member subdivision representatives
directed the Board to make a presentation to Bluewater Council
identifying the severity of the taxation issue and the inequity among
Bluewater wards with respect to the provision of municipal road
services. This presentation is scheduled for the November 16th Council
meeting.
BSRA will identify the following ways Bluewater Council
could provide some relief for taxpayers in all 7 wards:
- Commencing with the 2010 tax year, implement the option of a
10-instalment tax payment plan.
- Adopt a Municipal Budget Policy that would limit the annual tax
increase on any residential property to a maximum of 5% over the
previous year’s taxes, regardless of the effect that increases in
current value assessment would otherwise have.
BSRA will also request Bluewater to allocate a greater share of the
existing municipal budget within the Wards of Hay West & Stanley West to
reduce the inequity that exists among its 7 wards with respect to taxes
collected from, and direct services provided to, each ward.
Specifically, BSRA will request that Council allocate sufficient funds
with the existing budget of the Roads Department to:
Change the Road Grant reimbursement program to:
- remove the per kilometer reimbursement cap; and
- include the general liability insurance premium as an expense
eligible for reimbursement.
- Develop a schedule to pave currently-assumed roads west of
Highway 21.
- Assume and maintain, at Municipal expense, those residenceaccess
roads within the Wards of Hay West and Stanley West that are
designated on subdivision plans as:
- “Fee Not Dedicated ”, provided the subdivision association
wishes the Municipality to assume that road; OR
- “Dedicated ” (i.e., not privately-owned, but currently unassumed)
Full report to council November 16, 2009
Power Point Presentation to council November 16, 2009
Council
decided to move from a 7 installment payment option to 10 payments.
Starting with existing 7 payment customers making the change. Check with
Bluewater as to when it will be available for new users. Staff was asked
to review and report back to council on the 4 remaining recommendations
Summary from the BSRA Annual Meeting August 29, 2009 |
