Council stalls on tax raise

The idea was to raise about $1 million each year through the increase to be put in city reserves for future infrastructure needs.

However, as soon as the proposal hit the floor, it sparked vigorous debate over the fairness of a minimum tax and the need to raise reserves.

Coun. Charlene Miller said she was absolutely against the idea of a minimum tax and had been saying as such since the idea was first proposed several months ago.

“Not on the backs of lower-income people and not on the backs of seniors on fixed incomes,” she said.

Coun. Darren Whitehead agreed saying while it was small increase, it would have a big impact on seniors.

“They’re on a fixed income — seniors — and I think it’s just too big a tax burden for them,” he said.

Coun. Lee Atkinson agreed and added that the principle of minimum tax was unfair.

“The lower priced properties have to pay more, which to me is not fair; it’s not about equity,” he said.

“Some of our lower-priced properties are in areas which have half the street lighting, do not have paved streets, do not have sidewalks, have limited recreation facilities, no city parks, and your saying they’re not paying their fair share?”

Atkinson said he also wasn’t in favour of a simple general account for reserves. He said he liked the idea as long as it came with a plan for how the money would be spent — otherwise it would be always be at risk of being spent frivolously.

Coun. Greg Dionne held up the other side of the argument saying that the minimum cost of fire and police service alone was $900 a year.

“It’s an equal tax, everyone pays it equally,” he said. “Is it correct in a city of our size that we should have houses that pay under $500 a year?”

Dionne added that the city simply needed the money to pay for the looming infrastructure deficit in the city, including a $50-million road construction deficit, numerous bridges and other projects.

“One day, this is all going to catch up to us,” he said. “Everyone’s worried (the tax increase) is going to be five per cent or six per cent this year.

“Well if we don’t do it, down the road our children are going to pay 10 and 12 per cent.”

Council talks about other options

Council ended up voting down the proposed increase with councillors Dionne, Cheryl Ring and Martin Ring voting in favour, but that wasn’t the end of the debate.

Mayor Jim Scarrow proposed a smaller minimum tax of $60 could be implemented to lighten to burden of properties with smaller value, but still raise money for reserves.

However, the debate over that amount stalled because only Scarrow had the report prepared by administration as to what the $60 minimum tax increase would look like.

Council voted in favour of delaying the decision until they could all receive a report from administration with the different numbers.

Though the city is waiting on that report, they didn’t rule other option out.

Miller and Atkinson have stated they will not vote in favour of any minimum tax, while others are divided between the need to raise infrastructure money without overburdening the population.

Also on the table are options for a straight increase and the taxation of vacant land.

City director of finance, Joe Day, said his department would come up with the report, but reminded council that a decision should be made before May because that is when tax bills are mailed.

Council is expected to receive the numbers for the newest tax proposal at the executive committee next week and vote on it at the subsequent council meeting.

adesouza@panow.com

by Andrew de Souza

Council stalls on tax raise

Council talks about other options

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