Tuesday, 23 May 2017

Where do my taxes go now? Where will they go with a Rural Community?  


In a recent blog post (scroll down to find it), we talked about taxes in the current LSD structure throughout the YRC Project area. In this post we will talk about how taxes would be affected by the formation of a Rural Community. Here is what is being proposed:

Service to Proposed YRC Residents
Would Be Provided By:
1. Governance
YRC Council
2. Policing
3. Emergency Measures Plan
YRC Council
4. Fire Protection
DELG (via several fire departments)
5. Dog Control
6. Street Lights (in Oswald Gray Subdivision and on Carlisle Rd)
NB Power
7. Land Use Planning
YRC Council / RSC 11
8. Recreation
DELG + Rec Councils
9. Disposal  and Garbage Collection and Recycling
RSC 11 and private contractors
10. Road Summer /Winter Maintenance
Department of Transportation and Infrastructure (DTI)
11. Road Capital Upgrades

In the LSD model all rates are set by the provincial government but in a Rural Community model they would be set by elected residents who serve on the Council. 

An LSD does not have a bank account but a Rural Community does meaning that the Council can save funds for future planning, emergency situations, etc.  within the Rural Community.  Any unspent budget in a LSD is returned to the government.

A common misconception is that a Rural Community requires a single blended tax rate. The truth is that for the York Rural Community Project, it is being proposed to maintain the existing tax areas so that residents continue to pay taxes only for the services that they receive.  There are 8 different LSD tax rates in the proposed YRC Project area ranging from $0.4030 to $0.5821 per $100 of assessment.  

And what about the cost for administration of the Rural Community?  Initial estimates for the proposed YRC add an estimated $0.015 to cover that cost.  On a $200,000 house the estimated increase represents approximately $30 annually. The cost of the existing services is assumed to remain the same but will be evaluated for cost savings as the feasibility study progresses.  The preliminary feasibility study report for the YRC Project will be released on June 30, 2017.

If you have any comments concerns or questions about the cost of about tax rates being proposed for the YRC Project area, please send them to the YRC Project steering committee at yorkruralcommunity@gmail.com.  

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