Plant closure could bump tax bill

Kiss FM News

Raise taxes or cut services. That's the dilemma the new Coldstream Council will be facing next year due to the pending closure of the Owens Illinois glass plant in Lavington.Financial director Catherine Lord says the shut down will result in up to 200-thousand dollars in lost taxes and energy fees to the municipality. Lord says a four percent tax hike would be needed, to make up the shortfall. The plant will close October 31, putting 300 employees out of work.
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Don Quixote Note: My analysis of the O.I. Properties is that at last years assessed value of almost $8.8 million ($1.44 land Value, $7.36 Improv.) that the loss to Coldstream if the property is changed to a light industrial use is $199,636. However the loss in tax revenue to the School Board would be $22,023 and the Library would be $17,039. (Overall Tax revenue loss for all taxing authorities would amount to $241,201.)

The loss to Coldstream if the property is changed to a business use is $191,269 but the reduction from above Light Industrial usage calculation would be picked up by a decrease in NORD Tax Revenue of about $14,500. the loss to Coldstream if the property is changed to a light industrial use is $199,636. (Overall Tax revenue loss for all taxing authorities would amount to $248,634.)

Worse Case Scenario:
If However the Plant was reduced down in assesment to $0 because it was of no use to new owner the potential tax revenue loss would rise to $377,689. This additional $136,488 (compared to a light industrial class same assemnet value senario) would see losses of an additional $25,906 for Coldstream, $50,080 for School and $52,000 for Nord and $4460 for Hospital.

It can be seen that most of the Tax revenue loss is due to the class change rather then a large writedown in building value. (65% to 35% ratio)
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Losses due to Natural Gas Franchise and Hydro are an additional revenue loss to Coldstream.
My recall of last years budget was that $30,000 = a 1% tax hike in Coldstream. If that was the case each $100,000 of loss would be 3.3%.