June 15th, 2017
His Worship Mayor Mike Bradley
255 N. Christina Street, Box 3018
Sarnia, Ontario
N7T 7N2
Mayor Bradley
Re: Special Service Area Levy for Transit
The Lambton Federation of Agriculture (LFA) works to represent and champion the interests of farm families across Lambton County. LFA and our local farm family members are very concerned about the proposal to eliminate by-law 40 which enables the transit special service area levy within the City of Sarnia.
By-law 40 and the transit special service area levy were enacted in 2003 in recognition that the transit line is a special service that is exclusively available to residential properties within a close proximity to the transit line. The special service area levy prevents rural homeowners and farm families from subsidizing the cost of a service that they are excluded from using.
In 2016 the Municipal Property Assessment Corporation (MPAC) released its updated assessment of all properties in Lambton County to be used for property tax purposes. Farm assessments in Lambton County have increased by an average of 65%. The disproportionate increases in farm assessments will increase the farm tax burden from approximately 5.4% of county taxes in 2016 to nearly 8% of county taxes in 2020; this could amount to more than $4 million over a four year period.
Elimination of by-law 40 and the transit service area levy would increase the shift of tax burden onto farm families within the municipal boundaries of the City of Sarnia. Farmers work with fixed commodity prices and have no ability to pass the cost of increased tax burden onto consumers. This means the increased tax burden will directly reduce net farm income for local farm families.
Given the fact that farm families are excluded from using the city transit line and that there will be a significant increase in farm tax burden in Lambton county over the next four years, LFA encourages you to maintain by-law 40 and the transit service area levy.
Sincerely,
~Al Langford~
President, Lambton Federation of Agriculture