Catalyst Paper Corporation will face a $500,000-increase in city taxation in each of the next three years.
At a special City of Powell River Council meeting Thursday, October 23, all but Councillor Russell Brewer voted in favour of revitalization taxation bylaw 2394, 2014, which will increase the mill’s annual tax bill in 2015 to $2.75 million.
Prior to adoption of the bylaw, Councillor Maggie Hathaway said she was going to vote in favour, but reluctantly.
“I still believe the amount should have been raised a little more and for a one-year period so that a new council would have an opportunity to address it,” she said.
Brewer agreed the bylaw should have been for one year rather than three. He was previously on record supporting a $750,000 increase in the mill’s taxes.
At the other two Catalyst locations in Port Alberni and Crofton, the tax assessments are higher than Powell River’s, but they have not been increasing. Mayor Dave Formosa said Catalyst was hoping Powell River’s assessment would also stay at the same level.
Formosa said Catalyst’s management was not happy with the prospect of a $500,000-increase. On the flip side, the city requires $750,000 more per year in taxation to fill ongoing commitments in its budget.
The bylaw initially was planned to come before council for adoption at its Thursday, October 16 meeting, but Mac Fraser, the city’s chief administrative officer, said the revitalization taxation bylaw required modification before adoption, so council would be voting instead to amend the bylaw.
Fraser said the amendment would replace the initially stated mill rate of 27.19033 with the more appropriate rate of 43.76181 in the revitalization taxation bylaw for Class 4 Major Industrial properties.
“Our apologies for having this technicality but it’s all important,” Fraser said.
