Whitehorse Daily Star

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Photo by Vince Fedoroff

FRUSTRATION VOICED – Keith Halliday (left), chair of the MacBride Museum of Yukon History, and Nils Clarke, a musuem board member, are seen during their appearance at Monday evening’s city council meeting.

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Photo by Vince Fedoroff

Janna Powell, Nancy Oakley and Jocelyn Curteanu

New grant policy punishes museum, city told

It’s regrettable the city – with a surplus and money in reserves – is cutting its support to the museum that’s been the trustee of its history for more than 50 years, says the chair of the MacBride Museum of Yukon History.

By Stephanie Waddell on November 25, 2014

It’s regrettable the city – with a surplus and money in reserves – is cutting its support to the museum that’s been the trustee of its history for more than 50 years, says the chair of the MacBride Museum of Yukon History.

Keith Halliday was speaking this morning of city council’s decision Monday evening to change its grant policy, which has provided MacBride and a number of other non-profits with annual funding that paid their property tax bills.

He noted the museum’s board is doing contingency planning to deal with the changes ahead that will take effect with the next property tax bill in July 2015.

Under the new formula (calculated to current tax rates), MacBride will be charged $4,726, with the city granting the remaining $22,287 in property taxes.

The changes will be phased in over four years, putting the cost to MacBride at about $1,000 this year with continual increases until the fourth year, when it will pay the full amount.

While that may not appear to be a lot for some, Halliday and Nils Clarke, a member of MacBride’s board, argued at last night’s council meeting the granting policy should be left as is, as many benefiting groups like MacBride provide important services to the city that it would not be in a position to take over at the same cost.

The museum, Clarke noted, is a year-round conservator of the Yukon and Whitehorse story.

Halliday drew attention to the $3.7-million surplus in 2013 as well as $27 million in city reserves in calling on the city to continue providing the grants. He pointed to the figures in the city’s 2013 financial report.

City officials noted municipalities and other levels of government are subject to financial reporting rules that factor in assets and liabilities such as roads and sidewalks. Halliday, however, pointed to the city’s cash flow showing the surplus.

He also pointed to the “long-standing partnership going back many years” the city and museum have had and the excellent service the museum has provided.

The new formula, he argued, essentially punishes MacBride for its efforts to increase revenue through initiatives like its gift shop and donations.

As the museum stated in a letter to the city earlier this month: “In effect, it is a tax on our revenue. For every $100 we raise from the Yukon government, donors or other funders, we have to pay 2.7 per cent to the city.

“How will it look when we have to tell our other donors that? Every time we approach funders for dollars, they ask us to raise money. And we do, so how do we explain that our city government has not only cut its support to us but also has developed a new tax approach that skims a share off the top of their contributions to us?”

The letter also notes the museum uses the calendar year as its fiscal year. That means it has cash on hand on Dec. 31 to help tide it over until the territory’s fiscal year ends on March 31.

“This inflates our current assets and triggers more tax. If we had a March 31 fiscal year like some other organizations, this would not happen.”

The letter then goes on to make a number of points museum officials reiterated to council last night.

Halliday also noted the changes come at a time when the Yukon’s economy is down, as noted in recent media reports. That impacts the donations people provide to organizations and the number of visits the museum might see.

The equation to determine the grant is based on a sliding scale providing a full grant of property taxes for non-profits where assets and revenues are $500,000 or less, a 50 per cent grant for those with more than $1 million in assets and revenue. Those that have more than $500,000 but less than $1 million will get a grant equal to 100 per cent on the first $500,000 and 50 per cent on the remainder.

As council members recalled last night, changes to the policy have been talked about and worked on since shortly after the current council was elected in 2012.

The goal was to make the grants available through a more equitable policy and come in closer to the $140,000 the city budgets to assist with property taxes.

As noted by Rob Fendrick, the city’s director of corporate services, over the last three years or so, council has had to approve an additional $30,000 to cover the full grants to organizations.

Meanwhile, two other non-profits focused on preserving history noted the negative impact the changes could have on museums.

Nancy Oakley, executive director of the Yukon Historical and Museums Association (YHMA), called for the city to delay its changes in favour of looking at how other jurisdictions support heritage organizations.

Under the new formula, the YHMA would continue to be granted its full property tax bill.

Oakley then pointed to a number of examples of municipalities that provide tax exemptions to heritage organizations, adding the YHMA supports that approach over the rebate.

That spawned a discussion on the city’s authority.

Staff pointed out that while the city can grant taxes back, it cannot exempt taxes, though the Yukon government could have that authority.

This morning, Halliday argued the city would be simply passing on its responsibility. For its entire history, he noted, the museum has not paid property tax, which essentially amounts to a tax abatement.

“They are perfectly capable of continuing to do so,” he said.

Janna Powell, the Yukon Transportation Museum’s executive director, also noted the impact the new policy could have on those forced to pay a portion of their property tax.

For non-profits, she said, “O and M (operations and maintenance) money is already stretched.”

Powell then proceeded to paint a picture of a non-profit wanting to do a project. Using simple math terms, she said the project would cost $10.

With just $1 in the bank, the group would look for funding sources.

Eventually, a funder would come along offering $9 and expecting the organization to fund the remainder. With only $1 in the bank, though, and a property tax bill, the project probably wouldn’t proceed.

Powell then asked council to consider the impacts of moving to the new formula on a number of fronts. She asked council to delay moving to the new approach in order to come up with better solutions.

The transportation museum won’t be hit with a property tax bill, as it’s a tenant of the Yukon government.

The territory, however, would pay $284 of the total $25,477 tax bill for the Alaska Highway property.

Coun. Kirk Cameron, who attended the meeting via conference call, was the only council member to vote against moving forward with the new policy. He argued the city should take the time to “get it right,” and shouldn’t be pushing through a policy that’s not needed.

While Coun. John Streicker had initially suggested postponing a decision, after a number of other council members opposed the delay, he decided not to put it forward as a motion.

Streicker did point out that non-profits around the city live “close to the bone,” and are sincere about the challenges they face in paying a portion of their city tax bill.

At the same time, it was emphasized by other council members, the city has been working to come up with an equitable policy for all in dealing with tax grants.

“I’m very happy with this policy,” Coun. Dave Stockdale declared. He noted the work that’s gone into the document, and described the issues brought forward by the historical groups as a “tempest in a teapot”.

Coun. Betty Irwin praised the city administration’s “masterful” job producing a policy that is equitable.

She also noted that policies can be changed. If it’s found this isn’t working out as planned after a year or so, she added, amendments could be brought forward to make improvements.

Coun. Jocelyn Curteanu said all non-profits need certainty, which will be provided through the phased-in approach on the grants.

While she wanted to see the policy go ahead, she suggested discussions should continue with affected groups.

“We shouldn’t postpone this any further,” Curteanu said.

Mayor Dan Curtis pointed to work over the last two years on a policy he argued has turned out to be fair to all groups.

“I think this is a really fair balance,” he said.

The policy is not “cast in stone,” he noted, taking issue with what he deemed as hostility and anger from the MacBride museum.

The total amount various groups would pay on property taxes comes in at more than $23,000.

Comments (10)

Up 5 Down 6

Brent Slobodin on Nov 28, 2014 at 11:26 pm

Dave has always been opposed to the heritage of Whitehorse. He's been a shill for years on soccer, in direct conflict with his position on the Council. If Dave can tell us how soccer brings money to the Yukon economy as opposed to heritage, I am all ears.

Up 2 Down 1

BnR on Nov 27, 2014 at 9:02 pm

Wayne, what are you talking about?
What $23k won't you have to pay?
Are you familiar with how taxes work?

Up 17 Down 8

Frank Greentree on Nov 26, 2014 at 2:39 pm

In additional to all these online surveys and information sessions that the city promotes, I would like an online presentation of the number and wages of staff and mayor and council.

I think we can find ways to reduce wasteful spending with the information provided and then use the money freed up to support the museum operation.

Up 22 Down 11

Sandy Helland on Nov 26, 2014 at 2:48 am

It's shameful the current COW will give themselves raises and build a new (future) City Hall for themselves, yet cut funding for programs and volunteers that MAKE this city interesting.

It's pure irony: the hand that feeds you, bites you.
But now the COW is killing in its zeal for more land tax monies.

Up 22 Down 6

Max Mack on Nov 25, 2014 at 6:44 pm

The job of councillors is not to pat administration on the back. Their job is to think critically and challenge. Is that too much to ask?

How is it that the countless hours spent by volunteers (and unpaid hours of paid employees) are NEVER recognized by any accounting system, despite the massive benefit to communities?

In fact, CoW won't even recognize me for shovelling my sidewalk (which does little to benefit me, but benefits other city residents) every few days while my street is only plowed 1x per winter. Or, what about the countless hours spent doing recycling?

Fair accounting to municipalities, governments and corporations is decidedly one-way.

Up 26 Down 10

north_of_60 on Nov 25, 2014 at 6:42 pm

The CoW can fritter away hundreds of thousands of our hard earned taxpayer dollars on a Sustainability Department, 'sustainability studies' by southern 'experts', and other social engineering boondoggles we don't want or need, but when it comes to supporting the things that make the Yukon unique like our Museums, the CoW always fails to deliver. Anyone who complains gets a dose of "We know what's best for you".

It's too bad we don't have a mechanism to remove inept politicians before the next election.

Up 13 Down 11

J on Nov 25, 2014 at 6:13 pm

If politicians had shorter terms and were more replaceable, I wonder if they would still make the same decisions - knowing that they would be held accountable to their jobs.

Up 11 Down 11

Wayne on Nov 25, 2014 at 5:40 pm

That is $23,000 I don't have to pay. If I visit any of the affected venues, I'll pay at the door.

Up 37 Down 8

Mark Smith on Nov 25, 2014 at 4:15 pm

This is a little more than a “tempest in a teapot”.

Its like adding taxes to the working poor so they fall further through the cracks. So, these groups will pay $23,000 in taxes and then the city (based on recent news articles) may spend $50,000 for sketchy traffic lights to change a pedestrian bridge into a motorized bridge.

How do council members sleep at night? They make statements like they are acting in our interests and then ignore reason and punish the vulnerable groups like the museum and city residents who have no one to speak up for them.

Council is very disappointing!

Up 30 Down 11

bobbybitman on Nov 25, 2014 at 3:52 pm

$4700 a year for property taxes at that little museum?! The Cow has to seriously find some cheaper feed.

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