Editor:
Your Oct. 8 article, “George gets the green light,” quoted Mayor Rowe: “The project under consideration, when fully built, is expected to generate tax revenues in excess of $300,000 per annum.”
A few back of the envelope calculations can put that number in perspective.
Per Gibsons’ financial statements, it generates three to four million dollars in taxes annually (depending on what you include). So $300,000 represents an increase of 7.5 per cent to 10 per cent. Sounds good!
One can reasonably assume that this $300,000 increase will come at some annual cost to the Town – for instance, new infrastructure to maintain, and some new administrative overhead demands related to the George. Let’s assume that the increased cost amounts to a very minimal $20,000 per year. The net tax benefit now looks more like $280,000 annually for the taxpayers. Still good!
The 2011 StatsCan census indicates that Gibsons had 2,015 private households (owned or rented, and not Band housing). One assumes that five years later it is somewhat more – let’s say perhaps only 2,100. This means, at best case, the average tax cost savings, per residence, is a paltry $133 annually.
Of course, not all property tax savings accrue to residences. The 100-plus Gibsons storefront businesses also pay property taxes. Let’s assume that they bear only 10 per cent of the burden. The apportioned tax savings to residences now looks more like $120 per year.
Unless something has been missed, it would thus seem the residential taxpayers of Gibsons just sold the waterfront in return for which they each get a coffee and a doughnut per week, in perpetuity. Doesn’t sound quite so good anymore.
One imagines that if a bridge ever does get built between Gibsons and the mainland, some of these residents will be lining up to buy that too.
Alan Donenfeld, Gibsons
