GORE BAY—Gore Bay council has approved user fee increases for several of its facilities such as the arena, community hall and the marina.
The 2026 town rate book identifies all user revenues from town operations. In some instances, services the town provides can generate sufficient revenue to help reduce the overall impact on residents with their property tax. Council was informed at a meeting last week costs of all operations are increasing and failure to increase rates will result in significant impacts to the property taxes required to support these areas.
Town Treasurer Michael Lalonde explained that when setting the rates, it is important to consider the type of rate and the effect on the price versus the basic economics such as elasticity, supply and demand. An example of this is the fitness centre, he pointed out. Any change in this rate would likely have a significant impact on the overall revenue. For example, a three percent increase in prices would likely see more than three percent of the current subscriptions (users) not renewing, therefore reducing the overall revenue.
“Each year staff receive a number of requests to reproduce tax and water bills that have already been issued,” said Mr. Lalonde. He noted that while these requests may seem minor, the cumulative staff time involved-estimated at approximately $20 per reprint for tax and water bills represents an avoidable expense to the town. “Staff is requesting a new $10 user fee in 2025 for reprinting property tax and water bills, to recover the true administrative cost.” It would also provide encouragement to ratepayers to retain their original billing documents.
“Do we send out tax bills electronically,” asked Mayor Ron Lane, being informed this is the case.
Mr. Lalonde said that looking at companies that can assist the town to provide this service electronically is an option.
“It might solve the problem of people misplacing their bills,” said Councillor Dan Osborne.
Mr. Lalonde said there would be some setup costs and residents would have to register to be provided this service.
“We want people to use all these facilities and services but, for instance, the fitness centre is underutilized, and the community hall use doesn’t keep up to the costs of operating it,” said Mr. Lalonde.
It was pointed out the recommended changes in the rate book can be part of the 2026 budget process.
Mr. Lalonde said an alternative to raising user fees in some cases would be to raise property taxes to offset the increase support required for various operations such as the arena and other areas.
The rate book recommendations include an increase of two percent to raise the hourly rates at the arena for the 2026-2027 season to $86.75 for minor hockey and $118.50 for regular ice rentals. A standard increase of two percent is recommended for all other arena rates excluding skate sharpening.
Other changes being proposed includes an increase of two percent for all community hall rates excluding dispensers; a two percent increase to dockage rates to account for inflation and rising operational costs at the marina; and a seven percent increase to the residential dockage rate, which is part of the ongoing plan to phase out the residential rate.
As well, for construction permits it is recommended an increase of renewal fees from $50 to $75 per year. It was noted in Mr. Lalonde’s report that timely completion of construction projects contributes directly to assessment growth and the town’s overall tax base. When building permits remain open for extended periods, the assessment benefits of the new development are delayed. To encourage permit holders to complete their projects within a reasonable timeframe, staff recommend increasing the renewal fee from $50 to $75. The intent is not to generate additional revenue, but rather to promote timely project completion and ensure that improvements are assessed and added to the tax roll as soon as possible.”
There is no change in rates recommended for users of the council chambers, museum and harbour centre, transfer station or fitness centre.
Mr. Lalonde pointed out the costs of all operations are increasing and failure to increase rates in some areas will result in significant impacts to the property taxes required to support these facilities. He added that to implement the change in permit renewals, bylaw 2016-25 will need to be amended.
Council approved the 2026 rate book (user fees) staff recommendations as presented.
