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Municipality answers parcel tax questions

The municipality reportedly received a flood of inquires after it sent out a letter last Wednesday
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District of Clearwater director of finance Sheila Thiessen explains the parcel tax review process.

Contrary to what some believe, District of Clearwater is not bringing in a new parcel tax, according to director of finance Sheila Thiessen.

“The parcel tax rate for 2014 has been set during the budget process as $100, which everyone will be paying,” she said. “Last year’s overall rate was $80, the people paying in Sunshine Valley were paying $400.”

The director of finance added that the sewer parcel tax is going from $30 to $40 as well.

“That system is more straight forward as it was always one rate, and roll,” Thiessen said. “It was incorporated into the same bylaw as all the water rolls. We are separating water and sewer and making it much simpler and easier to follow.”

The municipality reportedly received a flood of inquires after it sent out a letter last Wednesday, informing property owners within the District's water and sewer systems of a process to review Clearwater's water and sewer parcel taxes.

“For the majority of property owners receiving the letters, this is not a new parcel tax,” Thiessen said. “Parcel taxes have been in existence for both the water and sewer systems prior to incorporation, through the Clearwater Improvement District.”

Parcel taxes are a flat tax per parcel and are regulated by the Community Charter. They are a way of collecting funds for the long term maintenance and sustainability of the utility systems from all properties that can be serviced by the utility:

That means, for example, that a property does not need to be connected to the water system in order to be charged the parcel tax. Charges are based on the ability to connect in the future.

Parcel taxes are different from the quarterly user fees that are billed to properties that are connected to the system. User fees are for operational maintenance while parcel taxes are directed at capital improvements and long term sustainability of the systems.

The parcel tax has been and will continue to be charged on annual property tax bills.

Funds collected for either the water or sewer system are restricted to be used for that purpose only.

The director of finance noted that Clearwater's water system was developed in stages, with different extensions being done at different times.

“At the time of each extension the individual property owners were given the option of paying their share of the costs up front or paying over a period of time on their annual tax notices through a parcel tax,” she said.

The different extensions resulted in a number of different parcel tax rolls. Over time, the borrowing incurred to pay for the extensions was paid off.

In 2013, Sunshine Valley was the final area to finish paying for its extension.

Properties in Sunshine Valley that had paid up front for the extension to that area will receive a parcel tax for the first time in 2014. For the other Sunshine Valley properties, the parcel tax will reflect a decrease.

“When the borrowing for the different water system extensions was paid off, the parcel tax that was being charged for the debt payment ended and the regular parcel tax began to be charged,” Thiessen said. “The owners that had prepaid and were not paying parcel taxes began to pay the regular parcel tax as well.”

The director of finance noted that these arrangements were put in place by Clearwater Improvement District and so predated the municipality. They resulted in several different rolls being charged the same amount. What the District is doing now is creating one roll.

“Creating one roll for the water system will make the parcel tax process more efficient and easier to administer,” she said.

However, the Community Charter requires that the District complete a parcel tax review process in order to do this.

The letters send on Wednesday to property owners are a requirement of this process. A parcel tax review panel is also a requirement. The panel will meet on April 10 and will give property owners a chance to register concerns if they feel that their property has been included in error.

Property owners who want to have the parcel tax roll amended need to give written notice at least 48 hours before the panel sits.

Thiessen asked that anybody who has questions about the parcel tax should call or drop by the District of Clearwater office, or email her at sthiessen@docbc.ca.