Spring Update

A Message from the President
April 5, 2006

Welcome to Spring, Daylight Savings Time and the ice quickly melting off the lake!

There are many items of importance to the Golden Lake Property Owners Association that are moving forward at this time of year. Probably the most important to us all is reflected in the Interim Tax Bill that we all recently have had to pay. Unfortunately, this bill does not reflect the dreaded tax increase that might be expected as a result of last year’s increase in the property value assessment.

At the risk of being the bearer of bad news, let me relay news from GLPOA Director and Bonnechere Valley Township Councillor Cairine Cybulski. She has been busy this early spring bringing a motion forward at Council to appeal to the Ministry of Municipal Affairs with respect to the interim taxation process.

As Cairine says, tax bills recently mailed to ratepayers carry forward at the taxation and assessment rate from 2005. That is, the 2006 Interim Tax Bill, which covers first half of the year, is calculated at 50% of the total billed amount from 2005. This is the case with each of the three Municipalities covering the Golden Lake and Bonnechere catchment.

While the assessment notices went out late November 2005, in some cases advising of significant assessment increases, the 2006 Interim Tax Bill does not reflect any adjustment. These increases have yet to be applied. The July tax bill, that is designed to cover the second half of the year with any adjustments for the year, will carry the total increase for twelve months, so be aware.

Unfortunately this may serve to compound the already contentious issue of waterfront assessment that we all face. It’s not a pretty picture, but we feel it is important for members to have clear understanding of how things will unfold.

On the positive side of all this, there is action being taken at the Provincial level with a Homesteaders Bill introduced at Queen’s Park that may pave the way to revamping the assessment procedure. As well, the Provincial Ombudsman, André Marin has released a scathing report on Ontario’s Municipal Property Assessment Corporation (MPAC), basically saying that the corporation’s practices are “unreasonable, unjust, oppressive and wrong.” There is a movement growing across the province that might bring effective reforms. Ottawa Mayor Bob Chiarelli has called on the Ontario government to suspend the current system until it can be fixed.

So, stay tuned. We will have this on the agenda of the June 3^rd Annual Meeting of GLPOA at Killaloe Public School. In the meantime, check our FOCA information on our web site www.goldenlake.info

Dave Lemkay
President
info@goldenlake.info

Action Requested!

Update to Winter WRAFT Report – April 2006

This report was prepared by Wendy Engle of the Round Lake Property Owners Association. She thoughtfully forwarded it to us.

A few weeks ago the Ombudsman issued his scathing report on the assessment procedures at MPAC. For details of the report go to http://www.ombudsman.on.ca/english.asp. WRAFT put out a press release following the issue of the report calling for the shelving of the 2005 assessment. It is posted on our website. While, as expected, the Ombudsman’s report does not deal with the underlying inequities in the present property tax system, it does seriously discredit the whole assessment methodology, providing yet more ammunition for an overhaul of the basis for distributing property taxes in Ontario.
In the winter WRAFT report, we described PC Finance Critic Tim Hudak’s private member’s bill to cap assessment increases. On April 13, this bill gets second reading. There will be a press conference at 10:00 am at Queen’s Park and the bill will be debated in the House at 11:00 am. We encourage representatives of members to attend both of these events. Please let us know if you can attend. (wraft@sympatico.ca) WRAFT supports the Hudak bill which limits future assessment increases to 5% per year.
We keep asking our members to write their MPPs, and many have done so. Whether you have or have not sent a letter or email, please follow up with this email (see attached) to the Finance Minister with copies to Tim Hudak and to WRAFT. The pressure for reform is building. You can do your part to help.
Most municipalities set their tax rates based on financial needs. If total assessments in the municipality are up, then the municipal tax rate should decline accordingly. The education tax rate has already been reduced to offset the provincial assessment increase. If your municipality is taking advantage of higher assessment to simply hold the tax rate rather than lower it, you should take action locally. Also, please let us know, because it is further ammunition in our fight for capping assessment increases.

Please send the following email to the Finance Minister, Dwight Duncan, at dduncan.mpp@liberal.ola.org. Send copies to PC Finance Critic Tim Hudak at tim.hudak@pc.ola.org and to WRAFT at wraft@sympatico.ca

Dear Mr. Duncan,

Canada has an international reputation for justice and fair play.

The system now in use for assessing residential properties and distributing property taxes in Ontario makes a mockery of this reputation.

The 2005 assessment on my property in ___________________Township was up a whopping ____% over the last assessment.

Where is the justice and fair play in this system?

The Ombudsman has just said that “MPAC is experiencing a crisis of credibility”. How can we rely on that organization to determine our share of the property tax bill? In view of the Ombudsman’s scathing report, clearly the 2005 assessment should be set aside.

We depend on you, our Finance Minister, to introduce reality to the property tax system by capping assessment increases after 2004 at 5% a year. Alternately, we ask for a freeze of assessments at the 2004 level until a full study has been conducted and necessary reforms are in place to reduce volatility and halt the ongoing shift of tax onto waterfront and other high value properties.

Yours sincerely,

Cc: MPP Tim Hudak, PC Finance Critic
Cc: WRAFT

Letter from Association President Dave Lemkay to Ontario Finance Minister, Dwight Duncan.

April 8, 2006

Dear Mr. Duncan,

I write to express concern over the issue of property assessment in Ontario. It is clear that the very expensive system to assess property values is causing great difficulty for individuals and their municipalities. Clearly something must be done to correct this. I support the notion that a 5% cap on assessment increases, as outlined in Mr. Duncan's Private Member's Bill, would ease the disruption that we all face in the immediate term. In the longer term, serious and thoughtful redesign of how Ontario manages its taxation could take place in a democratic fashion.

The 2005 assessment on our property in Bonnechere Valley Township was up 19% over the last assessment, which was less than two years previous. As well, I am aware of a few hundred other waterfront property owners on Golden Lake and the Bonnechere River who have seen increases at much higher rates, some reaching 50%!

Municipalities here have not applied the assessment increases from last Fall on their interim tax bills. This means that the final tax bill, due in July, will carry hefty increases to be applied for the full twelve months of 2006. It might also mean that it is possible to set aside any application of the 2005 assessment.

Ombudsman André Marin has reported that “MPAC is experiencing a crisis of credibility”. We as taxpayers - the underpinning of the Government of Ontario - should not be held to ransom by ineptitude and poor design. In view of the Ombudsman’s scathing report, we, as taxpayers cannot tolerate continued use of this flawed system. Clearly a solution would be to have the 2005 assessment set aside and move forward with the suggested 5% increase on the 2004 assessment base.

As Finance Minister, you have the opportunity and the obligation to introduce reality to this situation with a practical, simple and fair system such as capping assessment increases after 2004 at 5% a year. It can be achieved by judicious voting by your party and all members to allow Mr. Duncan's Private Member's Bill to pass in the House.

If this does not happen, a freeze of assessments at the 2004 level should be enacted until a full study can been conducted to identify suitable reforms to reduce volatility and halt the ongoing, disproportionate shift of tax onto waterfront and other high value properties.

Yours sincerely,

Dave Lemkay

President,
Golden Lake Property Owners Association,
P.O. Box 99, Golden Lake, Ontario K0J 1X0

Cc: MPP Tim Hudak PC Finance Critic
Cc MPP John Yakabuski, Renfrew-Nipissing-Pembroke
Cc: WRAFT