Buck a bag dead, rail lands levy brought to life

A buck a bag is dead, Mayor Vic Fedeli says, but it’s got to be replaced by something to pay for the rail lands purchase.

Following Thursday night’s budget meeting, Fedeli and deputy mayor Peter Chirico both said council will now look at funding the annual $1.6 million principle and interest payments on the rail lands through a levy on the property tax bill.

Taxes on the bill would be decreased by whatever amount is decided on for the levy.

“I don’t think it was actually understood by the general public that the $12.5 million purchase of the waterfront takes $1.6 million out of our operating budget each and every year for the next 20 years,” Chirico said, after the city’s agencies, boards and commissions, with the exception of the North Bay-Mattawa Conservation Authority, presented their 2004 budgets.

A reality
The solution to pay the $1.6 million annual interest and principle payments could be the per-household levy, Chirico said.

“You can slash, you can cut, but that would mean we’re not going to provide services to our residents, so acknowledging the fact that we have a problem with our debt is number one, and we’re going to have to deal with this and define it very quickly,” Chirico said.

The levy could be $50 per household, or $100 per household, Chirico said, “depending on how long we want to stretch this out, so that’s what I’m getting council prepared for, because it’s a reality.”

Mounting opposition
Fedeli had originally proposed a $1 per garbage bag fee to repay a 20-year debenture taken out to purchase the rail lands.

But he’s dropped the idea in the face of mounting public opposition.

“I think people didn’t understand that it would also reduce the amount of their taxes by that much,” Fedeli said.

“But the point is the bill is sitting on my desk for the 2004 share of the rail lands repayment, and it’s $1.6 million.”

No double dipping
Fedeli emphasized the levy would not increase tax bills, but just be specifically allocated toward the rail lands.

“Yes, it’s still a tax but we’re not going to be double dipping,” Fedeli said.

“Taxes will be reduced by whatever amount we decide for the levy.”

The levy, Chirico said would have a start date and an end date.

“Fifty years from now we might look back and say the rail lands was one of the greatest purchases the city ever made,” Chirico said, alluding to a previous council’s decision to make the deal with CP.

“The problem is they didn’t make any allocations for it within their budget, and now we’re paying the piper.”

To read BayToday.ca's editorial on the rail lands click here.