Municipal staff in Chatham-Kent are moving forward with the suggestion to eliminate a few property tax area charges.
In a report coming to council on Monday night, staff are recommending the elimination of area ratings for police services, street lights, and horticulture.
An area rating is intended to account for either significant differences in service levels or costs of providing services to various different parts of Chatham-Kent.
If approved, all property owners would pay equally for the three services through the base levy, regardless of how frequently the service is used in their community.
The idea first came to council in early October with staff hoping that eliminating some area tax charges would help create a more streamlined approach towards property tax calculations. The Municipality of Chatham-Kent currently maintains 3,000 tax rates each year including 14 different area charges, many of which were carried over from pre-amalgamation.
"By eliminating the area rating of these three services we will simplify the property tax calculations making it easier for taxpayers to understand, evenly distribute the cost of these services among those who benefit from them, and progress from a pre-amalgamation tax model to a more unified methodology that will benefit decision making in Chatham-Kent going forward," stated the report.
Council ultimately opted to refer the report back to staff in order to get more feedback from the public.
The idea to eliminate the service charges prompted frustration from some residents who argued that the change would be an unfair burden to put on rural properties.
According to the staff report, a rural property owner that is currently paying $196 per $100,000 of assessment for police services would begin to pay $298 if the area charges are eliminated, resulting in an increase of $102. Meanwhile, an urban property owner who currently pays $374 for police services right now would pay $298 under the new model, resulting in a savings of $75.
Impact to a residential property if policing, streetlight and horticulture area ratings are eliminated per $100,000 of assessment (Via Municipality of Chatham-Kent)
"The recommended changes to these three area rated services is based on the idea that all taxpayers in Chatham-Kent benefit from the access of these services," the report reads. "Whether there are streetlights in your neighbourhood or the streets that you travel, we all benefit from the increased visibility and safety that they provide. Regardless if you reside in a rural setting or an urban center, the Chatham-Kent Police Service is there to protect and service you day and night. The presence of horticultural initiatives beautify Chatham-Kent as a whole from shore to shore and give us all a sense of civic pride."
Many rural property owners have not warmed up to the idea of eliminating area charges, though.
Members of the Kent Federation of Agriculture, Christian Farmers Federation, and a Senior Policy Advisor from the Ontario Federation of Agriculture met with the municipality during the consultation period.
According to the report, administration clarified during the meeting that the impact to a property in the 'farm class' would be at 22 per cent of the amounts referenced in the report, due to current tax ratios.
Despite that, the agricultural groups remain opposed to the idea.
Kent Federation of Agriculture President Jay Cunningham said transferring the tax burden from those residents receive the direct benefit of the services to the general tax base, specifically rural properties, would create an inequity within Chatham-Kent.
"We simply don't have the same level of service and the same level of coverage, just due to common sense and geography," said Cunningham. "When it comes to street lights and horticulture, no we don't have a lot of it on the back roads. We don't get near the same benefits of the ones that have it in their front yards...[The area rated servces] were done so for a reason, we don't see a reason for them to change."
The Kent Federation of Agriculture argues area rated services have worked well for many years. Cunningham said the municipality's notion that area rated services are not a well-understood by property owners is an insult to the average ratepayer.
"Everybody I've spoken to has no problem understanding the yellow page that comes in our taxes and has for the last 20 years. It's simply a grid. You know where you live, you either have a checkmark beside the service or you don't," he said. "It's pretty straightforward."
Council is scheduled to discuss the issue and bring it to a vote Monday night.