To the Editor,
Re: Port Theatre in dire straits facing first funding deficit, Jan. 17.
This article generally covers the subject, but ignores a significant facet of costs associated with the Port Theatre and other city-owned properties, which are used by private agencies whether for profit or no.
I speak of the fact that such city-owned properties do not pay property taxes, even though they require all of the services for which property taxes are collected.
This, in itself, provides a subsidy which can be significant.
For example, in the case of the Port Theatre, which is shown as having a total assessed value of some $19.1 million, the property tax bill at the “business/other” tax rate would be about $446,000 per year. This is the rate at which any privately owned comparable property would be taxed.
Add this sum to that which has been disclosed, and the current subsidy for the Port Theatre comes to about $1 million per year.
In cases like this where property taxes are exempted, the costs of servicing represented by property taxes must be collected from those property taxpayers who are not exempt, i.e. you and me.
Every exempt property adds to the deficit, which must be made up by the rest of us.
If we were to add this figure to the conference centre, for example, we would be adding nearly another $1 million to its annual operating loss – and there are other such examples.
I do not hold that we should eliminate any or all of these hidden subsidies to private or quasi-private agencies outside the direct control of the city, but I do hold that these subsidies should be clearly disclosed and that the public should have a significant say in granting them.
Ron Bolin
Nanaimo
