Local Area Services

  Under the Community Charter, a municipality may provide a service within a part of the municipality. Such a service is known as a “local area service”, and the area within which the service is provided is known as a “local service area.” Municipalities may recover all or part of the cost of a local area service by levying local service taxes against the properties located within the boundaries of the local service area. A local service tax may be a property value tax, a parcel tax or both.

The approval of the property owners or electors within the proposed local service area is required and there are three methods that can be used:

1. A petition signed by at least 50% of the owners of properties representing at least 50% of the assessed value of land and improvements that will be subject to the local service tax,
2. Council initiative, as long as 50% of the owners of properties representing at least 50% of the assessed value of land and improvements that will be subject to the local service tax do not petition against establishment of the local area service, or
3. A referendum voted upon by the electors in the proposed local service area.