North Cowichan residents are being encouraged to attend a public meeting Monday night and share their input as municipal council prepares its 2012 budget.
There will be a public meeting Mon., Jan. 30 from 6-9 p.m. at the North Cowichan Municipal Hall at 7030 Trans Canada Highway.
North Cowichan is facing many challenges as it prepares its 2012-16 Financial Plan, mainly the vulnerability of North Cowichan should its major industrial taxpayer, Catalyst Paper Corporation, be unable to continue to pay its annual property taxes given the highly-competitive global market in which it operates, according to a press release from the municipality.
“In 2011, Catalyst paid North Cowichan $5.6 million in general municipal property taxes,” stated the release. “This represented 26 per cent of all property taxes used in North Cowichan to fund the valuable core services provided to our residents and businesses.”
During this budget process, council will review its options to reduce the costs of providing its core services, such as protective services, recreation and culture, and roads. Council will be considering shifting the tax burden from heavy industrial taxpayers to residential taxpayers, which means the average homeowner in North Cowichan could face a hike of up to $350 in their property taxes this year.
“Unfortunately, without a dramatic cut in the services we all receive today, there will not be enough savings found internally to limit the financial risks associated with a default of a major taxpayer on 26 per cent of the property tax revenues generated annually,” stated the press release. “It is for this reason that the municipality will be considering a tax shift from Class 4 – Major Industry to the other property classes, including Class 1 – Residential. The municipal council will be considering up to a $350-per-average-home (approximately $1 per day, per household) shift in property taxes from Class 4 – Major Industry to Class 1 – Residential. If Council decided to transfer $350 of property taxes to the average home, it would reduce North Cowichan’s reliance on Class 4 – Major Industry from $6.3 million to $2.6 million annually.”
