The District of Mackenzie is facing a possible tax revenue loss due to a major industrial property owner applying to BC Assessment for a closure allowance. A Special Budget Meeting was held on Monday, November 8th to give the public an opportunity to present and provide comments, concepts, and ideas on how to adjust services or taxes to accommodate the potential loss.
Suggested options for funding tax revenue loss:
- Increasing taxes, user fees, reduction of services, or a combination of all three
- Look at increasing revenue streams
- Decrease in spending or a spending freeze
- Looking at current and future reserve funds
- Currently vacant staff positions will not be filled
- Balanced approach, without decreasing investment in the community
Questions Received Pertaining to Budget:
How much of a loss could the District incur if BC Assessment approves the closure allowance application from the major industrial property owner?
- If the application is approved, approximately $900,000
- If the application is approved and equipment is removed, approximately $1.5 million
Are there any options for accessing reserve funds or are there funds set aside for emergencies?
- The District has reserve funds that are required to meet legislative requirements and for purposes set out by Council. We do not have the ability to move money around from a capital reserve to an operational reserve.
- The financial stability reserve carries 2% of the budget for emergencies. It also includes $2,000,000 to offset tax revenue loss.
- Annual transfers are made for future infrastructure upgrades.
How much of an increase would that cause taxpayers if the loss was completely borne by residents?
- If a house is assessed at $200,000, a $900,000 tax increase would be approximately $315 for the year, a $1.5 million increase would be approximately $630 for the year.
- Any tax increase would be spread over all classes, not necessarily just residential.
Will the tax revenue from the Data Centre offset the loss from the mill?
- No, they are in a different property class
- Conservative estimate for anticipated tax revenue from the Data Centre is approximately $40,000
Are there any new industry prospects coming to town?
- Currently, just the Data Centre.
- The District continues to pursue investment opportunities and offers tax incentives to encourage investment.
View detailed Special Budget Meeting minutes for further information (Special Budget Meeting - November 8, 2021)
Next Public Budget Meeting:
Date: Monday December 13, 2021
Time: 5:30 pm
Location: Callahan Room, Mackenzie Recreation Centre