The Town of Clarke's Beach will continue to offer some of the lowest tax rates in the region this year, with the roughly 570 residential property owners in the town again paying 7.5 mills of the assessed value of their dwellings.
Council adopted its 2012 municipal operating budget at a Jan. 16 meeting.
It's symbolic of a growing town that is doing well financially, said Deputy Mayor Kevin Hussey, who chairs the town's finance committee.
The town purchased a new backhoe and dump truck/snowplow this year, and will still be able to pay its bills without raising taxes, he added.
"We are managing fine in regard to running the business of the town on that. Our budget is good," Hussey stated following the meeting.
He said the provincial Department of Municipal Affairs has, in the past, recommended that the town increase its mill rate. But that hasn't been necessary to this point, Hussey stated.
"We try to keep it as low as possible," he said.
The following is a sampling of residential mill rates in some other municipalities in the region: Bay Roberts - 8.75; South River - 8; Spaniard's Bay - 9; Cupids - 9.5; Harbour Grace - 10.5; Victoria - 9.5; Whitbourne - 7; and Carbonear - 9.25.
So what is a mill rate? It's the rate by which taxes are calculated on a property. For instance, if a property is assessed at $150,000, and the mill rate is 7.5, here's how you would calculate your tax bill: multiply the mill rate by the assessed value, and divide it by 1,000. So in Clarke's Beach, a home valued at $150,000 would be charged $1,125 in property taxes.
How does a town calculate its mill rate? According to the Municipal Assessment Agency Inc., a Crown corporation that carries out assessments for municipalities on land, buildings, and other improvements, town councils like Clarke's Beach determines the amount of money it needs to raise from property taxes in order to operate the municipality. The amount to be raised is divided by the total value off all the property in the municipality, and multiplied by 1,000 to decide the tax rate.
Town officials in the region say it's important to consider more than the mill rate when evaluating a town. The assessed values of properties also play a big role in setting the mill rate. If property values are high, which is generally the case in Clarke's Beach, which has seen its population increase in recent years, municipalities can have a lower tax rate and still collect the money it needs to operate.
On the other hand, in Harbour Grace, the population is shrinking and property values have flat-lined, thereby forcing the town to keep its tax rates at the higher end of the scale.
Meanwhile, the town did approve a hike in taxes for the two seniors' home in the town. One is operated by Eastern Health, while the second, Callingwood Downs, is a private facility.
"We're still not really where we should be," Hussey said of the taxes being charged. "We're trying to be fair to them as operating a business in our town, and we certainly want to keep them here."
The following is a summary of the 2012 Town of Clarke's Beach operating budget, by the numbers:
• $808,494 — total budget for 2012;
• $181,675 — amount paid by town annually for debt charges;
• $15,400 — remuneration for mayor and councillors;
• $79,820 — cost of general administration;
• $28,000 — town's payment to the Bay de Grave regional fire brigade ($50 per household);
• $9,080 — animal and pest control;
• $109,803 — transportation services such as street maintenance, snowclearing and streetlighting;
• $75,000 — garbage collection and disposal;
• $39,803 — maintenance and operation of water supply;
• $16,000 — recreation and cultural services;
• $92,927 — capital expenditures out of revenue, includes extension to town garage and infilling of "The Glam;"
• $457,875 — projected revenue for property taxes;
• $115,000 — projected revenue for water and sewage taxes;
• $127,619 — transfers from the provincial and federal governments;
• 25 per cent — percentage of local revenues and municipal operating grant being used to service debt.
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