City challenges propertie’s reduced assessments

Why city hall is appealing a ruling lowering property taxes in Takhini North is somewhat puzzling, says the president of the local resident's association.

Why city hall is appealing a ruling lowering property taxes in Takhini North is somewhat puzzling, says the president of the local resident’s association.

Mark O’Brien said this week 12 residents filed an appeal of their property assessments.

They argued that because of the substandard water and sewer system installed during the Second World War era, their properties are of less value than what they were assessed at.

The city initially told the residents last year it would cost approximately $24,000 per home to make the necessary upgrades.

O’Brien said the current estimate has been reduced some, but is likely still somewhere between $18,000 and $20,000.

The taxation assessment review panel ruled in favour of the 12 applicants and lowered the assessed values.

That translated into savings in property taxes of between $100 and $150 per property, O’Brien pointed out.

He said the review panel also ruled that its decision would apply to all 86 duplex units in the neighbourhood, and not just the 12.

Applying savings to all properties means a loss to the city of about $8,000 to $12,000, which is a relative spit in the bucket, O’Brien pointed out.

He suggested the lost revenue is not the motive behind the appeal.

The association president suspects the city is appealing because the decision adds weight to the association’s lawsuit against the city for not ensuring the water and sewer system was brought up to city standards when the federal government sold the property to local developers.

The residents filed their suit last week.

It asks the Yukon Supreme Court to find the city was negligent in its responsibility to ensure the water and sewer services were repaired before the duplex units were put on the market.

The city had required those upgrades when Ottawa sold the Takhini West and East subdivisions, the residents point out in their lawsuit.

The lawsuit requests the court to order the city to pay for the upgrade, with no charge to the Takhini North residents.

“Obviously, it’s not because of the money they are losing,“ O’Brien said of the decision by city hall to appeal the decision by the assessment review board.

“I think it is because of the momentum it gives us.“

City hall has denied any responsibility for the situation the Takhini North residents find themselves in, suggesting it boils down to a buyer-beware case.

Mayor Bev Buckway said Thursday the decision to appeal the Takhini residents’ tax break is an operational one, not one made by herself and council.

Rob Fendrick, the city’s director of administrative services, said this morning the city is appealing the taxation decision for two reasons.

According to the taxation law, the review board can only reduce the assessment when there’s been a drop in the local market values.

He said the value of properties in that neighbourhood has not gone down.

Secondly, Fendrick pointed out, allowing for lower assessments in property values because of aging infrastructure could set a costly precedent for the city.