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'Have more certainty': Regional leaders hopeful new MPAC direction will be more predictable

THUNDER BAY – Regional municipal leaders are optimistic a new approach from the Municipal Property Assessment Corporation will lead to fewer controversial reassessments that have financially threatened many Northwestern Ontario communities.
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Municipal Property Assessment Corporation president and chief administrative officer Antoni Wisniowski said the organization is working to improve assessment transparency and predictability. (Matt Vis, tbnewswatch.com)

THUNDER BAY – Regional municipal leaders are optimistic a new approach from the Municipal Property Assessment Corporation will lead to fewer controversial reassessments that have financially threatened many Northwestern Ontario communities.

MPAC executives are in the city this week for the 70th annual Northwestern Ontario Municipal Association annual meeting, which kicked off Wednesday and is running through Friday afternoon at the Victoria Inn.

Over the past number of years costly property reassessments, such as the devaluation of Dryden’s Domtar mill by about $1 million per year, have resulted in MPAC becoming a lightning rod across Northwestern Ontario.

In January 2015 Thunder Bay municipal leaders estimated reassessments, including the reclassification of grain elevators from industrial to commercial properties, had cost the city nearly $5 million.

Thunder Bay Coun. Iain Angus, who is also the NOMA vice-president, said it remains to be determined what impact any changes will have but is hopeful it will lead to fewer surprises.

“All we can ask for on a go forward basis is that we have more certainty in terms of what the rules are, that there’s a comfort level between all parties, the rules are fair and municipalities can properly plan their finances,” Angus said.

“That’s the real big concern. You have a five or 10-year plan and then you lose half your assessment from a major employer and you’re scrambling to survive.”

NOMA president David Canfield, who is also the mayor of Kenora, said he believes MPAC is starting to become aware of the adverse impacts from reassessments.

“I think MPAC all the way around has realized this whole (Assessment Review Board) process is flawed, it is flawed bad,” Canfield said.

“The industrial loss for a lot of communities is killing us. It’s dumped everything on the residential taxpayer. The residential taxpayer in Northwestern Ontario can’t absorb anymore.”

Canfield added there is also a need from the provincial Ministry of Finance to give municipalities taxation tools to counter commercial and industrial reassessments.

Antoni Wisniowski, MPAC president and chief administrative officer, said they are working to provide more clarity and transparency to residential ratepayers as well as corporations and municipalities.

In the past, various municipal leaders have said they feel there is a lack of consistency or rhyme and reason to how various properties are assessed.

To counter that perception, MPAC is trying to resolve any discrepancies to help limit future grounds for appeal.

“Ideally all the parties are aware of what issues remain in terms of finding the correct value and ideally we’re narrowing those issues,” Wisniowski said. “While it’s not necessarily tightening up the process we’re hoping it’s going to tighten up the number of issues we’re dealing with on any appeal going forward.”

MPAC is finalizing their province-wide assessment update, which is done very four years.

Wisniowski said the average residential property value increase across the province over the last four years is about four per cent. The rates vary in the region with some cities like Thunder Bay at around a 5.5 per cent increase per year over the past four years while other municipalities, like Dryden, are flat at around one per cent per year.

They are publishing methodology guides and publicly talking to various municipal officials about changes in costs of facilities and external obsolescence studies, which have long been an irritant to area politicians.

As well, MPAC has launched a new website, www.aboutmyproperty.ca, which allows people to view residential properties so they can compare and analyze different valuations. Thunder Bay properties will be put online in early May.

“As people understand our process and have a better awareness of how we come up with it they’ll trust the values more,” Wisniowski said. “It’ll mean more stability and predictability for the taxpayer as well as the municipality as they deal with their taxes going forward.”





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