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HomeMy WebLinkAboutThe Times Advocate, 2004-11-03, Page 1(519)235-1115 www.hurontractor.com EXETER R.`D' HAWKS vs LUCAN FRI. NOV. 12 8:30 P.M. South Huron Rec Centre TIMES -ADVOCATE Exeter, Ontario, Canada Wednesday, November 3, 2004 1.25 (includes GST) South Huron wants cheaper phone bills By Scott Nixon TIMES -ADVOCATE STAFF SOUTH HURON — The municipality is looking at ways to cut down on its monthly telephone and cell phone expenses. Telcom Enterprises of Wasaga Beach approached South Huron, proposing to review its phone expenses and give recommendations for monthly savings. In return, the municipality could pay Telcom by giv- ing them 50 per cent of the monthly savings for six months or paying Telcom $75 per hour. It was decided the former option would be better for South Huron. Council agreed to go ahead with the study at Monday night's meeting. Chief administrative officer Larry Brown said long distance costs are only one part of the municipality's bills — there are also equipment, phone features and phone line costs. Responding to a ques- tion from Coun. Pete Armstrong on whether a local company like Bell or Sprint could do the study for the municipality, Brown said Sprint is only a long distance carrier and Bell won't tell cus- tomers how they can save money. Brown said the municipality needs to know how it can save on items like cell phones. Huron East and Hanover have already worked with Telcom and Bluewater, Goderich, Central Huron and Huron County are considering using Telcom. Several councillors spoke in favour of the deal, since it doesn't cost the municipality any money, they simply pay Telcom 50 per cent of the actual savings for six months. Coun. Ken Oke also spoke in favour of the proposal. See INSURANCE page 2 Theresa Parsons gives a flu shot to Peter Ivatts at a clinic for the patients of Dr. Fatum and Dr. Jadd Oct. 27. (photo/Mary Simmons) Comparing taxes among local municipalities By Scott Nixon TIMES -ADVOCATE STAFF SOUTH HURON — Think your municipal taxes are too -high? They could be worse. To satisfy his own curiosity, South Huron Mayor Rob Morley decided to see how property taxes in his own municipality compared with other municipalities in the area. He said he was inspired to look at neighbouring numbers when an Exeter resident complained at a pub- lic meeting that property taxes in Exeter are more expensive than in London. "We certainly proved that (belief) wrong," Morley said. Other municipalities Morley looked at included: Bluewater, Lambton Shores, Ilderton (Middlesex Centre), St. Marys, Aylmer, Mitchell, London, Listowel and Goderich. Figures for Lucan Biddulph were later added. Looking at residential property taxes, local residents could be much worse off. Of the 11 municipalities looked at, property taxes on a home worth $175,000 in Goderich would be $3,265.45, the highest on the list. The Exeter portion of South Huron came in at number four, with taxes of $2,612.87. South Huron's rural por- tion sees taxes of $2,375.98. The reason for the two rates in South Huron is the OPP contract, which sees the Exeter portion pay 55 per cent, while the rural area pays 45 per cent. The municipality's OPP contract this year is $1,231,000. Bluewater was sixth on the list, with annual taxes of $2,366.72, Lucan Biddulph was seventh at $2,324.42, and Lambton Shores was eighth at $2,266.71. Morley said he was surprised Aylmer was so high on the list. At $2,849.21, it was in second place. Paying the lowest residential taxes of the 11 munici- palities were Ilderton at $2015.60, and Mitchell at $1,975.91 in the urban area and $1,702.26 in the rural area. London was third on the list at $2,753.45. Rankings were similar for farmland, which is 25 per cent of the residential rate. A farm valued $800,000 in South Huron would pay $2,715.36, Bluewater farms would pay $2,704.80, a Lucan Biddulph farm would pay $2,656, while a Lambton Shores farm would pay $2,590.48. The biggest disparities were seen on the industrial taxes. Of the 11 municipalities, an industry valued at $1 million in London would pay the highest taxes, $64,948.20 a year. Lambton Shores and Lucan Biddulph were in the middle of the pack at $42,833.40 and $42,428.96, respectively. Bluewater's taxes were the lowest of the 11 municipalities, at $26,861.90. Second lowest was Exeter at $28,409.10. And while Mitchell's taxes were low on the residential side, an industrial property valued at $1 million would pay $40,838.30. Bluewater and Exeter were also low on the list for commercial properties. Bluewater was again lowest, with a commercial property assessed at $500,000 pay- ing annual taxes of $12,234.55. Second lowest was Exeter at $13,008.15. Lambton Shores was third on the list, at $18,300.20. Lucan came in sixth, at $14,486.94. Morley said those municipalities which don't have a lot of industrial or commercial property have only one other place to get tax revenues and that's on the resi- dential side. Because of tax ratio capping provisions implemented by the government in the late 1990s, municipalities are unable to dramatically increase or decrease industrial and commercial tax rates. South Huron chief adminis- trative officer Larry Brown said the provision had a lev- elling effect on taxes. Morley noted high county taxes also drive up munici- pal tax rates. And property assessment, controlled by the province, is a big factor on tax bills. Morley said the fallout from the Walkerton tragedy has dramatically changed the municipal landscape. "Walkerton has dictated so much in every aspect, whether it be in roads or water ... and with the down- loads, (the government) dictates to you what you have to do, but they don't fund it." Morley said South Huron's numbers show him that, "we're not totally wrong. There's always room for improvement, but everyone is obviously going through the same problems. Sometimes you think you're out there all by yourself." Morley noted there is a huge difference in industrial taxes between London and Exeter, with Exeter's almost half as much. Morley spoke of one company that was considering moving to Huron Park — while the compa- ny didn't make the move because the province took too long to decide to sell the industrial side of the park, Morley said that company would have saved more than $1 million a year in taxes if it did move. He said the municipality's low industrial and commercial tax rates are good reasons to try to attract more businesses to the area. "Obviously the more business and commercial you get, that helps out the residential side." On the farm side, the province dictates that the farm tax rate is 25 per cent of the residential rate; in other words, municipalities with high residential tax rates will have high farm tax rates. Lucan Biddulph administrator Ron Reymer pointed out it is difficult to compare taxes between municipali- ties because $175,000 can buy you a much different home in one municipality than it can in another.