A2 - The Terrace Standard, Wednesday, July 16, 1997

New restructure numbers
look better — for Terrace

HOME OWNERS in Terrace will get a tax break if they vote
to merge with Thombhill this fall, says a final report on options
for the fulure of local government here.

And residents in Thomhil! have the prospect of stable taxes if
they amalgamate with Terrace, the report says in indicating a
merger of the two is the most viable option.

But another possibility - establishing Thomhill as its own
municipalitiy ~ would jack residential taxes there ta nearly dou-
ble their present levels after eight years.

The final report is to be discussed by a committee of Terrace
and Thomhill representatives tomorrow night. They7ll decide if
there will be a referendum this fall on the future’ of local govern-
ment and what question or questions will be on the ballot.

The new study is based on.1996 census data and 1997 assess: .
ments and budgets, The results indicate Thornhill incorporation
would be prohibitively expensive.

There would be some short-term gains for residents and busi-
nesses in the community, since incorporation would eliminate
the rural property tax and take advantage of low interest rates.
Road and policing costs would also not take effect in the first
yea.

As a result, property taxes based on an average $138,278
home in Thornhill would drop from $1,600 to $1,200 in the first
year. Businesses assessed -at $100,000 now paying $2,700
would also see a break of close to $700 in the first year.

However, that’s where the good news ends. By year six the
same hame would be paying more than $2,600 in laxes and the
business, more than $4,200.

And by year eight, when policing assistance runs out, the fig-
ures jump 10 nearly $3,000 and $5,000 respectively.

The tax impact of a Terrace/Thormhill merger would be much
less severe, ;

The average home in Thornhill would not see any savings the
first year. In fact taxes would increase by some $53 to $1,667.
However, over six years that figure only rises marginally, to
$1,695.

Braun’s istand residents would take a big hit in the first year,
as their taxes on an average home would jump by nearly $400.

Terrace residents, meanwhile, will get a tax break of nearly ~
$80 in the first year of amalgamation. And over eight years, ©
their taxes are expected to stay less than they are today, reaching
$1,714 in 2005 ~ down from this year’s $1,749, Js

Terrace businesses now paying $3,650 will see a hike of about
$130 the first year and $600 over eight years.

_- Thornhill businesses will be hit the hardest. Their Property

taxes will see’ an increase of some 40 per cent {mare than
$1,000 for a $100,000 business) in the first year to bring them in

_ line with the rest of Terrace.

The study says the impact of these taxes could be altered
somewhat by shifting the current taxburden,

Some of the $1.5 million in restructure grants promised by the
provincial government could be used to lessen the tax impact a

. bit,

City councillor Val George says he still thinks it’s a “rotten
deal", particularly for businesses that are already among the
highest taxed in B.C, 7

George said the big beneficiaries of a Terrace/Thornhill
restructuring would be the provincial government, which will
save a great deal of money over the long run. As a result, he
said, they should have offered a mote generous package,

Councillor David Hull said he thinks it’s as good a deal the
area is going to get from a cash-starved provincial government.

And he said he thinks voters on both sides of the river will
vote yes to amalgamation — on the basis of the residential tax
control the deal would give - so long as the issue doesn’t get
confused by rhetoric from local politicians, such as the regional
district's Thornhill director, Les Watmough. “It would slow the
residential tax rate rise in Thornhill,” Hull noted.

But he said it will be more difficult to explain the benefits of
the package if “the waters are muddied by dissidents.”

Watmough says so far he sees no new advantage for ‘Thornhill
residents. ,

“I’m not happy with the fact that Thornhill taxes would go up
and Terrace taxes would go down,” Watmough says. “A
Thornhill person has to ask why. And I have to ask the same
question.”

Mill crisis soawns info letter

THE FIRST of what could be a continous series of newslet- _
ters for workers affected by the Skeena Cellulose shutdown is
on the streets.

It's being published by a regional commiltee set up by the

- provincial government to deal with the crisis affecting thou-
sands of workers.

The first issue went out last week as Skeena Cellulose issued
lay off notices to approximately 100 of the 170 TWA workers at
its Terrace mill.

Approximately 70 [WA members will be working at (he mill’s
planer operation until supplies run out the end of this month.

A mass sign up of Skeena Cellulose workers Monday resulted
in 60 claims being filed. -

FROM FRONT

“What we need is a way to provide people with accurate
information about a whole number of issues,” says Michael
Reisborough, the provincial government’s key official involved
with Skeena Cellulose shutdown impact in the northwest, of the
newsletter.

He and federal employment official Shirley Kimery are co-
chairs of the committee.

The first issue of the newsletter has basic information on
employment insurance regulations, how to get in touch with
federal employment offices in the region and contact numbers
for various counselling services.

It's being made available at municipal halls, union offices,
band offices, social services offices and the like.

“

Skeena may sell sawmills

of forest licences and can step in to take back licences should a
mill close for more than 90 days. | , — ;

{ Schwartz ackiiowledged.ihat Papushka’s lettet sounds like a_
threat, but doesn’t want it to seem like one... . .... '
we're just saying it the way it is, Every day these operations
are down, their value decreases,” he said.

Chopping pulp mill jobs is one of three measures regarded as
crucial by the banks to straighten out Skeena Cellulcse’s
finances.

The provincial government has given good assurances the
company’s fibre costs will be reduced, and progress is also
being made in talks with the province to assemble a $278 mil-
lion, thiee-year financing package to help rebuild the pulp mill
and pay for other capital costs.

The problem, Schwartz said, is that the PPWC is taking too
long to decide whether it can agree to the banks’ demands for
changes to the collective agreement to cut the jobs.

“We get the feeling they're not taking the situation seriously
and that worries us,” Schwartz said. “We're at an impasse and
what we see as a lack of progress.”

Schwartz said the banks fear that by the time the union is
ready to deal, there will be little left of the company’s customer
base to salvage.

Timeis of the essence, he said, adding the loss of its big pulp
customers would threaten the company’s chances of surviving
an extended shutdawn.

“We've got maybe three weeks to a manth before we have
some major defections in our customer base,” Schwartz said,

The same goes for the company’s key employees, he said,

“People with strong options are considering their options,” he
said.

The company, he said, depends not just on mills and trees, but
customers and employees as well.

People who say the mills and trees aren’t going anywhere are
overlooking the other two elements, he said.

Schwariz said the company has already heard from some
potential buyers expressing interest in the sawmill operations.

Schwarz says the company wants to sell the sawmills and
woodinnds operations as one entity, rather than breaking them
up and selling them individually.

Mills ate specialized in terms of the sizes of wood they deal
with, so keeping the sawmills together means more efficient use

Pea tTard? q

City may welcome
photo radar vans

AFTER REJECTING photo radar several times a majority of
Terrace city councillors are now poised to invite the service
inside city limits.

The turnaround happened at a committee meeting behind
closed doors Monday night, when councillors voted 3-2 to rec-
ommend cauncil bring pholo radar to Terrace.

Councillors Ron Vanderlee, Tim Down and David Hull were
in favour, while Val George and Rich McDaniel were opposed.

Absent were councillor Linda Hawes, who has said she’s in
favour of trying photo radar here, and mayer Jack Talstra.

The full council will vote on the recommendation when they
meet on July 28.

Photo radar vans ate operating on the highways surrounding
Terrace, bul attomey-general Ujjal Dosanjh has said they would
not go inside municipalities’ borders without their approval.

Hull said he’s not-yet completely convinced inviting photo
radar into town is the right thing to do, but said he now believes
the vans do slow drivers down, potentially saving lives.

McDaniel said he’s opposed to bringing in photo radar,
adding it’s a waste ol taxpayers’ money.

“Tt was intended to be a cash cow,” McDaniel said. “Maybe it
isn’t turning outto be a cash cow, but it is a cash drain.”

“We have a drug problem here, and-if we’re going ta spend
the money that we are having a guy-sit in a van laking pictures,
we could be using that money to apprehend people selling drugs
in the City of Terrace.” rs

of the range of logs that come out of the timber licences,

Selling Skeena Cellulose as a sawmills-only operation
wouldn't be a simple mattereither

‘The central problem is what to do with pulp logs that would be
harvested along withsawlogs.. ttt?

Chips from sawmills here might be sold elsewhere, Schwartz
said, hinting that there are potential buyers elsewhere in the
province. :

He said the company might also request a government exemp-
tion from requirements that all wood — even low-quality pulp
wood ~ be utilized.

Miller said he likes the idea of having employees buying into
the operation and various creditors exchanging debt forequity
inthe company. —

Schwartz said that would be wonderful, but isn’t hopeful the
idea would pan out.

And Sandhu confirms it’s not the direction the union is plan-
ning to head.

“The union does not awn pulp mills, we run pulp mills,”
Sandhu said.

Schwartz is also hoping the unions will take the same
approach as the government and recognize that the high-pulp
lower quality forests of the region justify a separate approach
than operations in the rest of the province. :

Schwartz is worried provinelal bargaining between the indus-
try and pulp unions will bara “unique solution” that could keep

Skeena operating.

Daryl Anaka, Father John Smith and Mana Botelho

A correction

A CAPTION under a photo on Page A6 of the July 9 The
Terrace Standard referred to three people as ‘‘speaking out
against the planned teaching in public schools of tolerance
toward homosexuals.’’ This gave the impression the three
—» Father John Smith, Maria Batelho and Daryl Anaka —
ate against homosexuals.

The word ‘“‘homosexuality’’ should have been used in-
stead of “homosexuals’’, In fact, the three say they and
other Catholics accept homosexuals as individuals but ob-
ject to homosexuality as a lifestyle.

Additionally, the three object to the word ‘‘angry”’ in a
headline for a story accompanying the photograph. They
say they are not angry but are worried and concemaed. -

The Terrace Standard regrets the errors in the caption
and headline. ,

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