What would happen to taxes if Area Rating were removed so that everyone paid the same?
More importantly, why has the Town never explained this to the public?
Even more importantly, does council know the answer to this question?
Here’s what I had to do to find out…
e-mail me to firstname.lastname@example.org
Mar 2, 2015 at 9:41 AM
As you know, tax policy is to be discussed at the March 10 meeting of council and a large contingent of urban and rural ratepayers is expected to attend.
I have talked to some of the councillors and numerous members of the public about this issue. There is a great deal of public misunderstanding and I think that it is incredibly important that Council and the public have accurate information.
In particular, there is one matter that is poorly understood. Most rural ratepayers seem to think that if area rating were completely removed they would pay 32% more in taxes. Most urban ratepayers think they are paying 32% more today.
I know this isn’t true. For one thing, county and education are not area rated and they make up 60% or so of the rural tax bills. And, for every dollar in tax increase in the rural area, $1 is reduced in the urban area so a 32% spread requires only a 16% change to each area. The exact figures are a bit more complicated because of the differing mix of assessment classes in the two regions. My own calculation, based on the numbers publicly available is that completely removing area rating would increase rural taxes by 10% and reduce urban taxes by 7% but I do not have access to enough data to be sure.
I think that it would do everyone a great service if you could calculate the effect of on residential properties in the urban and rural regions of completely removing area rating.
I realize you are very busy right now but if you were able to make this available to council with their March 10 briefing papers I think it would go a long way to clearing up a number of myths and might lead to a much improved discourse at the meeting. My copy of the schedules attached to by-law 2014-006 are in pdf format, not Excel, and if you don’t have time to do this, just send me the Excel file and I’ll do the calculation myself.
No answer was ever received to this e-mail.
e-mail me to email@example.com
Mar 18, 2015
On December 16, 2014, it was reported to council that three responses were received from Watson & Co, KMPG and Dillon Consulting to a RFP on a SDR. I am aware that the SDR was cancelled but I would like to obtain these reports as they would shed light on the process that might be used should a Cost of Services Study be done. I understand that a CSS is one option being considered by council.
I am very concerned that the public is not being informed about the effect that removal of area rating would have on overall tax bills. Most of the public believe it is 32%. I believe it is about a quarter of that. On March 2, 2015 I send an e-mail to Mark Day which is set out below.
I have not had a response.
I am sure that Mark is incredibly busy now and I understand. The schedules to by-law 2014-006 which are posted on the website are in pdfformat, not Excel, and they are only 50% readable even with magnification. I would like to get a clear, readable copy of these.
If you are able to provide the Excel file used to generate , it would make my job easier. If not, I would request a readable paper copy of the schedules to by-law 2014-006 so I can re-key the information and reverse-engineer the formulae and can calculate the number.
I am prepared to pay any copying cost involved.
No answer was ever received to this e-mail.
e-mail me to firstname.lastname@example.org CC Susan Beckel
May 4, 2015 at 9:42 AM
I notice from the Town website Notice of Intent that you are soliciting comments and questions on the proposed by-law to establish tax rates.
Can you please e-mail me a copy of the proposed by-law.
In the past, the schedules to the taxing by-law have been presented to council and posted on the website in .pdf format and one of the schedules has been illegible, even under computerized magnification. I have requested but never received a legible copy of the schedule to the 2014 taxing by-law.
Can you please make sure that all the schedules you forward are legible, preferably by forwarding me the spreadsheets in excel format.
245 John St.,
e-mail Mark Day to me
May 8 at 3:49 PM
Dear Mr. Hogle,
The proposed by-law has now been posted on our website in the Agenda for the meeting on May 12th.
Here is the link where you can find the proposed by-law: https://greaternapanee.civicweb.net/filepro/documents?expanded=76120,5531&preview=83566
If you are unable to read the proposed by-law as posted, please contact our Corporate Services Department at 12 Market Square to request an alternate format.
Mark Day, CPA, CMA
Director of Finance/Treasurer
The Town of Greater Napanee
Phone (613) 354-3351 Ext.2005
Fax (613) 354-6545
I was able to download a copy of the draft by-law, still in .pdf format. It was fuzzy but, with magnification, and a lot of squinting I was able to read the numbers. After 3 hours of work I was able to reproduce the excel spreadsheet from which it was originally generated and do the calculation myself. Here are my results:
2015 Taxes on $100,000 Assessment Urban Rural
Under Proposed 2015 Bylaw $1,350.20 $1,138.90
If Area Rating Were Removed $1,240.30 $1,240.30
Increase/Decrease 8.14% decrease 8.90% increase
That was easy wasn’t it?