CORNWALL, Ontario – Council heard at their meeting on Monday, Nov. 28 that the upcoming budget would need to raise taxes on residential properties by a minimum of 2.57 percent.
Chief Financial Officer Tracey Bailey told council that a 2.57 percent increase would be required even if budget expenses will not increase, which they inevitably will.
The reason for this increase is down to an adjustment from the Municipal Property Assessment Corporation (MPAC).
MPAC is a not-for-profit organization that provides property assessments for municipalities which they base their taxes on.
MPAC revises its assessments every four years and commercial properties at least used to be unable to appeal those assessments, however, recently that measure was lifted.
In 2013, during the last assessment phase some of the commercial properties in Cornwall, particularly the distribution centres, saw their property tax evaluation increase by 96 percent. That number had been appealed, and now it appears, has been significantly adjusted.
What this adjustment means is a reduction in the forecasted take of commercial taxes and an increase in residential property taxes must be made by The City to make-up the deficit. The total increase to residential property taxes will be nearly $1.6 million.
“The assessment moved up too much four years ago and now there’s been a correction,” said Chief Administration Officer Maureen Adams.
Councillor Carilyne Hebert wanted to make sure that the public understood that although The City did not create this problem, it would be the ones to deal with it.
“(The increase) will be higher than 2.57 I guarantee that, because we need to provide services and some residents will be upset with that, but our hands our tied and I hope that they understand that,” she said.
Councillor Denis Carr who chairs the Budget Committee concurred.
“Councillor Hebert is correct, we didn’t cause the problem, but we have to deal with it now,” he said. “Administration worked very hard in presenting a budget package to council.”
