Kinsella baffled, concerned over new NSPI assessments

EDITOR’S NOTE: Following is a letter dated December 23 from former Annapolis Royal Mayor John Kinsella to Jamie Muir, minister for the Department of Service Nova Scotia and Municipal Relations.

Dear Minister Muir:

I am writing to you to express my concern over the proposed cut in NSPI grant in lieu of taxes for the Town of Annapolis Royal. A decision was made by someone, without consulting our Town, the Town of Trenton, or the Region of Queen’s, to change the assessment of NSPI holdings. This was done deliberately to reduce the grant in lieu to the Town of Annapolis Royal and these others, and increase the proportional share to other partners of the eleven host municipalities. The initial assessment was pegged at $9 million, down from $41 million. When pressed for an answer on the reasonableness of this assessment, it was increased to $16 million. How can this be so arbitrarily shifted? I’ve never had, or heard of an assessment being so fluid when the Provincial government had this responsibility. I encourage you to look into this situation and return this process to the fairness that your predecessor, Minister Angus MacIsaac set in motion. The government of that day based their policy on fairness for the eleven municipalities that hosted NSPI properties.

The NSPI Tidal Power Generating Station stands as a testament to a forward thinking government that, through their Crown Corporation created an ecologically sound facility producing green energy supplying two percent of NSPI’s overall production. In 1995, the Town of Annapolis Royal received $4,300 as a grant in lieu of taxes on a $41 million assessment. The tax bill for a private corporation should have been $1.5 million. That assessment had been adjusted as part of an overall review of all NSPI’s holdings. In 2001, Deputy Mayor Trish Fry and I met with Minister MacIsaac and his staff to discuss the principle of fairness re: taxation of this private corporation. The UNSM supported the Town’s position of full taxation for NSPI and working toward that goal. The Minister assigned staff to develop a policy to address this. The solution put into place gave the Town $363,000 in the first year with the intent of the government to increase that amount until it reached full taxation; this was supported by UNSM. It has proceeded with that policy. As the Mayor of the Town at the time, I often heard comments from other municipal leaders that were very supportive of the Town finally beginning to receive their fair share of monies as a grant in lieu. I also heard voices that spoke jealously of a small town being given so much money. Apparently, those voices hold sway at the moment, and hope to take monies fairly assigned to Annapolis Royal, for themselves. Annapolis Royal fought that attitude and that power brokering from 1995 until 2002, it appears we must fight again. I am told that the “new” and until now secret, assessment does not include “contents” in the building. -- as if the Strathflo Turbine is a piece of office furniture you can take out and haul away on the back of your pickup truck. It is an integral part of the building. Assessments on every building in Annapolis Royal have increased, yet we are to believe that this building has decreased in value by over fifty per cent? The Provincial government has mandated NSPI to increase their “green” power. This facility is the backbone of that wise policy.

The Town of Annapolis Royal has been prudent in spending the funds it believes were overdue. With the support of several partners, including the provincial and federal governments, they have dramatically addressed the infrastructure deficit that existed to the point where the current infrastructure is in reasonable shape. Much work still needs to be addressed, of course. They have reduced their debt level, and continue to work co-operatively with their municipal neighbours on issues such as public transportation. All of this possible because they are now financially sustainable with the NSPI funding.

I have a number of questions that I would like answered.

Who was aware that a review of NSPI’s holdings was taking place? What municipalities? What provincial departments? UNSM?

When was the decision made?

Why was Annapolis Royal not informed of the review? Apparently we were only advised of the decision once it was made.

Is there a detailed report on all the holdings’ assessments available and can it be provided?

Is this assessment decision final? What will be the provincial government’s response to it? I would encourage UNSM and the provincial government to continue with the current policy and not amend the assessment. I believe that it was a politically driven action.

Sincerely,

John Kinsella

Former Mayor

Town of Annapolis Royal