Special levies may get new set of rules

Councillors would be required to do more consultation

Councillors will need to organize public meetings and file more paperwork before forcing special taxes on property owners if council votes for a new set of rules on Wednesday.

It would be too onerous for staff to run a formal process to gauge support for a new levy, so they’re suggesting that any councillor who wants to use a community-specific tax to pay for a new program should be required to first pitch it to council, hold a consultation and write a report.

Provincial law allows municipalities to have community-specific rates through two financing options: a local improvement charge for capital works and a special levy.

A local improvement charge must be supported by a petition signed by two-thirds of the owners having at least 50 per cent of the assessment of the properties that would be charged for the work.

The city can also order the charge, but it can be challenged at the Ontario Municipal Board.

A special levy can be for operational or capital programs, but it doesn’t require public consultation, even if it’s sound political practice to talk with residents before saddling them with a new tax.

When there isn’t enough money in the city coffers to pay for a project, councillors can turn to a special levy collected through property taxes to pay for the amenities.

It has only been used four times in Ottawa.

The most recent special levies were for the mosquito-control program in Kanata North and a covered skating rink in the Canterbury community.

Council approved the anti-mosquito special levy on the recommendation of Kanata North Coun. Marianne Wilkinson, who held a mail-in referendum, in which 2,525 ballots came back showing 72 per cent support.

There were 22,578 registered voters in the ward in the 2014 municipal election.

For the Canterbury rink, Alta Vista Coun. Jean Cloutier promoted the idea during the last municipal election and consulted with residents, but didn’t hold a vote.

Something about the special levy scheme smelled funny to Rideau-Goulbourn Coun. Scott Moffatt, who asked staff to look into strengthening the rules for starting a special levy.

The legal department decided it’s still best for the ward councillor to organize any process in pursuit of a special levy, but staff have suggested rules politicians should follow.

The rules include pitching a comprehensive plan to council before having a three-month consultation window, including at least one open house and one additional public meeting, and devising a manner by which the councillor will gauge support and opposition. A post-consultation report would then go to council for review and vote.

The finance and economic development committee has agreed with the staff-recommended process. Council needs to sign off.