Elliot Lake’s deputy treasurer has warned council and city departments to hold the line on discretionary spending.
Deputy treasurer Timothy Vine issued the warning the council’s committee of the whole at its meeting on Nov. 20 after it was learned there will be a shortfall in revenue on taxes.
The deputy treasurer noted that almost $112,000 in anticipated tax revenue to the city will be lost after the Municipal Property Assessment Corporation (MPAC) found some apartment buildings were being taxed too high based on an MPAC review of property assessments in 2016.
“That wasn’t all… the main share came from multi-unit residential,” he told Elliot Lake Today after the committee of the whole meeting.
MPAC is the provincial body charged with doing property tax assessments used by municipalities to determine how much tax individual properties should pay. The MPAC assessment is done every four years and also provides property owners the opportunity to dispute the assessment evaluation.
In the case of the almost $112,000 reduction in tax revenue it was based on challenges to the MPAC evaluations from 2016.
“To help address this loss of revenue, it is requested that Council direct staff to immediately suspend all
discretionary spending and direct the Treasurer to set appropriate level of spending authority to ensure the staff direction is monitored and followed,” Vine wrote in his report.
Vine said the city was informed of the change just prior to his report to council.
‘The reduction in tax revenue will happen “this year,” Vine said.
It will also mean the reduction will be part of the city’s tax revenue over the next three years.
Vine told council, at its committee of the whole meeting. that the intent of his report was to “reiterate” the need to restrain discretionary spending by departments.
The report was enough to prompt several councillors at the meeting to question a request by the city’s economic development department for a $7,272 to go toward a seniors community grant program to assist people to find ways to navigate the local health care system. That program has received support from the local health team.
The report to council was presented by community development officer Amanda Roy.
Several councillors on the committee of the whole requested more information about the request as they voiced concern about the tax revenue shortfall.