Fort Frances Treasurer Dawn Galusha at 2019 budget meeting.
The town of Fort Frances is providing some clarification to the tax rate increase expected with this year’s budget.
Town council finalized both the operating and capital budgets on Monday.
At that meeting, it was stated the rate increase would be 3.7 per cent.
However, treasurer Dawn Galusha says that is over what is known as the notional rate which is often a starting point in each year’s budget discussions.
“The notional rate is calculated using the same amount of taxes of last year but with the current year’s assessment roll,” says Galusha.
This year, the notional rate dropped from 2018 by 1.89 per cent because of high total assessment values.
Galusha says to achieve this year’s budget requirements, there’s an increase from their starting number but residential ratepayers they will pay much less.
“Basically, we would start out the year if we were to collect the same amount of taxes last year with a drop in residential rate of 1.89 percent. Since there was an increase to get to the same rate as last year, there’s the 1.89. Then to get to our current rate (for this year) that (council) just approval, it’s actually an increase over the 2018 rate which works out to 1.795 percent.
Galusha says it’s that 1.795 per cent increase that impacts only the residential rates.
It works out to about $40 more in taxes than what they paid last year for most homeowners.
The town’s entire budget will be fully explained during an upcoming council meeting on April 22.
