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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.