– With files from Thomas Goyer
While both the District of Muskoka and the Town of Huntsville have signed a new service agreement with the Municipal Property Assessment Corporation (MPAC) under protest—only one (the District of Muskoka) held discussions in open session.
According to the District, concerns surrounding the Data Sharing and Services Agreement (DSSA) involve the inability to amend the agreement. A District staff report notes that suggested amendments would aim to add clarity to provisions surrounding changes to service levels and permitted uses.
MPAC is a key municipal data-sharing partner. According to Commissioner of Finance and Corporate Services Suzanne Olimer, municipalities in Muskoka rely on the data provided by MPAC and not signing the agreement could potentially deprive them of this data. MPAC set a deadline for signing the DSSA by December 23, 2023. The agreement will come into effect on January 1, 2024
“The district as well as our partners in area municipalities rely heavily on the information that’s available to us through MPAC. And so the alternative of not signing the data sharing services agreement is that we would lose a number of those services,” Olimer said.
According to the report from District staff, the permissions and protections in the DSSA are weighted to the benefit of MPAC and have not considered the municipalities who are supplying the data. As a result of these concerns and the lack of ability to amend the agreement, the District decided to sign the agreement under protest.
The original wording in the motion indicated that the District was signing the agreement under duress. This wording was an issue for Councillor Peter Kelley. He stated that he could not support that wording because in his view it called into question whether the agreement was still binding.
“Frankly under duress calls into question whether you have a binding and enforceable contract or not,” Kelley said.
According to District Solicitor Jamie Clow adding a provision stating the agreement is signed under protest or under duress is a symbolic rather than legal expression.
“The under duress portion is a symbolic gesture, not particularly binding in any way. Because it’s going to be the document itself that will govern the relationship,” Clow said.
After further debate, the document was amended to state that it was signed under protest rather than under duress.
The District paid MPAC $2.3 million for services in 2023. This number is forecasted to increase to $2.4 million in 2024. Currently, the District handles the billing for municipalities within Muskoka. The total price paid to MPAC is based on a combination of assessments and household properties. The current language and action by the District are supported by the lower-tier municipalities in Muskoka, according to Olimer.
A final amendment was added to circulate a copy of the motion to the Provincial Minister of Finance to indicate the District’s dissatisfaction with the agreement. Councillor Peter Johnston also recommended a detailed report be prepared on the issue to justify the District’s concerns over the agreement.
“We have lots of things that we are upset about, but we need to put that in a detailed report,” Johnston said.
DSSA fact sheet released by MPAC, HERE (pdf).
According to MPAC, due to the COVID-19 pandemic, the Ontario government postponed the 2020 assessment update. “On August 16, 2023, the Ontario government filed a regulation to amend the Assessment Act, extending the postponement of a province-wide reassessment through the end of the 2021-2024 assessment cycle. Property assessments for the 2023 and 2024 property tax years will continue to be based on fully phased-in January 1, 2016 current values,” it states.
The Association of Municipalities of Ontario says it is concerned with the delays in assessment. “AMO is concerned that further delays will compound uncertainty for residents and businesses. Outdated assessments are inaccurate, increase volatility, and are not transparent.
“AMO is concerned that further delays will compound uncertainty for residents and businesses. Outdated assessments are inaccurate, increase volatility, and are not transparent.
The government also announced its intention to conduct a review of the property taxation and assessment system focusing on fairness, equity and economic competitiveness. Further deferring property reassessment during the review means municipalities could be waiting a while before a reassessment is conducted.
AMO will continue its call for a return to the regular assessment cycle and expect to be an engaged partner in as details regarding the review continue to unfold.”
Don’t miss out on Doppler!
Sign up here to receive our email digest with links to our most recent stories.
Local news in your inbox so you don’t miss anything!
Click here to support local news
0 Comments