City to ask boundary extension to New Gold

NEWS/ CITY HALL — The City will formally apply to the provincial government to extend its boundaries to include the New Gold copper mine.

The decision came during a budget meeting today as council discussed the tax rate for heavy industry, with Mayor Peter Milobar proposing a freeze on that category at the 2013 rate.

The tax rate was once more commonly called the mill rate, which means the tax charged per $1,000 of assessed value of a property. The rate is adjusted according to what’s needed to meet the City’s budget.

Heavy industry has lobbied for a reduction in its tax rate for years, saying the City needs to be more competitive with other municipalities. It’s asked the City to work towards a rate of $40 per $1,000 of assessed value.

Domtar, Lafarge, Arclin and Tolko appeared before council last fall asking for their share of taxation, which has been around the $80 mark, to be reduced.

Milobar said the result of the last reduction in the heavy industry rate was an addition of two cents per $1,000 to homeowners. If nothing was done this year the industrial rate would hit about $81.35 because assessed values have dropped, he said. But if the rate was frozen, heavy industrial taxes would drop by about $250,000 in total.

The mayor said a $40 rate isn’t realistic but $55 would be a good target for the next council to consider. With New Gold inside the city, the heavy industrial share would be spread around more and the tax rate would go down.

“It’s meant to send a signal we’re serious about trying to reduce it,” he said.

Coun. Marg Spina liked the idea. “If we stabilize the taxes by freezing the rates this year it gives time to see what the new market is going to be like,” she said of the changing economy.

Coun. Pat Wallace said she would reluctantly support a freeze but said Domtar should commit to remaining in operation.

Finance director Sally Edwards estimated New Gold’s tax contribution would be between $1.5 million and $2 million, compared to Domtar’s $6 million.

Council favoured asking staff to draw up an application to the provincial government to take in the New Gold mine property.