Council for the Municipality of Bluewater is looking at altering its streetlight levy system to make it more equitable for ratepayers.
The issue was brought forward by staff at a special meeting of council Tuesday.
Maggie McBride, treasurer and manager of finance for the Municipality, said that the special area streetlight systems first established almost a decade ago have resulted in wildly different rates across a dozen communities.
"In 2016, 12 different special area systems with different levy amounts were established, meaning that each one pays a different amount," she said. "For the same property assessed with the same value, right now you could pay anywhere from $29 a year to $300 a year. Your house could be worth the same whether you're in Kippen or in Bayfield."
The difference in rates was one of four main issues McBride brought forward.
She also noted the Municipality needs a bylaw establishing specifically which areas benefit from streetlights.
"When we went to using a special area rate, there was no bylaw initially passed that defined what the benefitting area is," said McBride. "What that means from my side of things is that if there's a property that's severed, there's nothing telling me, even if there's a streetlight in front of that house, that I can apply a special area rate to that house. That's the whole reason to have a special rate, we're saying there's a benefit directly for these properties that isn't shared across the whole municipality."
McBride noted that special area rates are uncommon, as South Huron is the only other municipality in the area with the tax. However, the direct benefit was the reason council opted against rolling the levy into the general levy, with members noting that much like sewer and water, the service should be covered by those that use it.
But while there is desire to keep the levy, council directed staff to bring forward some reports to bring clarity to the situation, as McBride noted there are now more taxes being collected than needed to go in some reserves.
"There was quite a bit of work that was done to the system in 2019. All of the lights were replaced across the whole Municipality. It's my understanding the rates were increased to pay back the cost of that project over four years, so I'm thinking that's how the rates go to where they are," she said. "That cost of the 2019 upgrades has been paid for, so we're at the point where previous work has been paid for and I'm trying to figure out what to do going forward."
Each community's streetlight fund is separate, so for example, there is almost $300,000 in Bayfield's reserve, while Bayview has just over $4,600.
Council passed a motion to cap the capital reserve contributions at $52,422 a year, and review the system after two years.
Tax rates will be re-examined during budget season in the spring.
Staff will also explore cost recovery options with Huron East and Central Huron neighbouring municipalities on shared lights in Brucefield, Kippen, and Bayfield.
