Update: Annapolis Royal to lose $735 000 in annual revenues

by Geoffrey Agombar / Spectator / NovaNewsNow.com (Scroll down for UPDATE)

Annapolis Royal Mayor Phil Roberts announced Monday that – naughty or nice – Canada’s oldest town stands to receive one massive lump of coal in its stocking this Christmas.

The Town is poised to lose nearly three-quarters of a million dollars per year in property taxes from the tidal power plant after the Property Valuation Services Corporation downgrades the worth of the plant from $41.5 million to a paltry $9 million at the end of this year – an incredible 78% decrease.

As a result Annapolis Royal stands to lose $735 000 in annual tax revenues, according to a statement issued by Town Hall. “The loss of this amount of revenue clearly threatens the continued existence of the Town. As a result, the Town is now considering an appeal of the assessment when the new roll comes out in December,” the statement says.

Upon learning of the re-assessment, Mayor Roberts requested an immediate meeting with the Minister of Service Nova Scotia, Jamie Muir. “In view of the suddenness of this news, the fact that a new assessment roll will be coming out this month, the fact that the reasons behind it are certainly not the fault of the Town, and the fact that at present, the future is uncertain, we believe that this work needs to get started as soon as possible,” according to the statement.

The Town has also requested the provincial support to engage a consultant to review all options available to respond to this unpleasant holiday surprise.

Reportedly the PVSC explained the incredible devaluation as a correction of a property value which was improperly assessed from the start.

The Town intends to hold forums to give citizens an opportunity to discuss and comment on this situation, but dates and times are yet to be determined.

In the meantime, questions and comments are encouraged, and should be directed to CAO Amery Boyle at cao@annapolisroyal.com or (902) 532-3146. (gagombar@annapolisspectator.ca) * * * * *

UPDATE (Dec. 9, 10:46 a.m.) - Based on new documents received from Annapolis Royal Town Hall:

In 2007/08 Annapolis Royal pulled in just over $930 000 in taxes on the Nova Scotia Power property. With total revenues for that period standing slightly above $2 million, this amount accounted for 46% of Annapolis Royal’s revenues for the 2007/08 fiscal year.

So, the overall effect of a $735 000 decrease in property taxes on the plant would be that Annapolis Royal would earn approximately 34% less next year.

At this time, town statements suggest Town Hall had received no forewarning of this approaching seismic change. Efforts continue to determine rapidly how best to respond. * * * * *

Other stories on this subject: (Jan. 13) Annapolis Royal working without NSPI information, Link: http://www.novanewsnow.com/article-291544-Annapolis-Royal-working-without-NSPI-information.html (Jan. 13) AR planning for eventualities, Link: http://www.novanewsnow.com/article-291548-AR-planning-for-eventualities.html (Jan. 8) Annapolis Royal citizens laugh in face of adversity, Link: http://www.novanewsnow.com/article-289978-Annapolis-Royal-citizens-laugh-in-face-of-adversity.html (Dec. 18) Municipalities and province disagree on Nova Scotia Power property taxes, Link: http://www.novanewsnow.com/article-284987-Municipalities-and-province-disagree-on-Nova-Scotia-Power-property-taxes.html (Dec. 10) Tidal Plant value fluctuates, “Catastrophic” for Annapolis Royal, Link: http://www.novanewsnow.com/article-282522-UPDATE-Tidal-Plant-value-fluctuates-Catastrophic-for-Annapolis-Royal.html (Dec. 8) Annapolis Royal to lose $735 000 in annual revenues, Link: http://www.novanewsnow.com/article-281434-Update-Annapolis-Royal-to-lose-735-000-in-annual-revenues.html