Tax deadline looms

By Wawmeesh G. Hamilton - Alberni Valley News Published: June 25, 2009 1:00 PM

As the July 2 deadline looms for payment of municipal taxes, all eyes are on Catalyst. The company filed a petition in BC Supreme Court on June 5, saying it “consumed about $600,000 worth of city services in 2008 but paid $6.3 million in city property taxes” The petition further poses that the company’s position is that “...the tax rates set under the bylaw are illegal because they are unreasonable and unsustainable.” “The city has responded to the matter via our solicitor, and a court date is being set,” city manager Ken Watson said. “The case will probably be heard in either Vancouver or Victoria,” he said.

There won’t be a sudden tectonic shift in city services if Catalyst only pays a fraction of its taxes, as it has threatened. But the clock will still be ticking. “We’ll be able to run as-is until the end of 2009,” Watson said. “But we’ll be making qualitative assessments about where cuts will have to be made.” The case is unique, and may be without legal prec-edence, Watson said. “There are some cases where industry in a service area has not benefited from those services,” Watson said. “But those have very specific circumstances that are different from here.” Speaking by phone, Mayor Ken McRae said that there may be movement on the issue after the appointment of the new provincial cabinet. “I’m trying to get a meeting with the ministers of finance, forests and municipal affairs, as well as the four mayors and president of Catalyst,” McRae said.

Bridge funding may not be dead yet, and the recent federal $1 billion to aid the pulp and paper industry is an example why, McRae said. He added that it won’t help Port Alberni much though. “The company could change their mind before then — you never know — but I doubt it,” he said. TimberWest, launched a legal challenge of municipal taxes of its own. However, the challenge affects its Campbell River operation, where it operates on privately managed forest lands. “I predicted this would spread and it has,” McRae said.“If other companies see that another is getting away with it, then all of them will want to.” The city hasn’t broken any rules or regulations, McRae said.“We’ve done everything by the community charter, which is controlled by the province,” he said. Meanwhile, on the ground, City staff are beginning to game out alternate budgets. “We’ve had discussions in council about is, but no decision has been made yet,” McRae said. McRae agreed that the city had reserves it could draw on if Catalyst doesn’t pay its tax bill, but the well only hold so much water. “We’ll be OK for about six months, but after that it’s going to get serious,” McRae said.