WHAT IS A LOCAL SERVICE DISTRICT? •  A local service district or LSD is managed by the provincial government. •  It may have a volunteer advisory committee or not. The advisory committee

has no authority over the community and no responsibility for the community.

•  The provincial minister of local government has final say on all rules, regulations and tax rates in an LSD. Provincial employees administer the community on behalf of the minister.

•  Community zoning is done through a rural plan that is administered by the

Regional Service Commission.

HOW PROPERTY TAXES WORK

Residential property taxes are based on two things:

1)   Assessed value of the property. This is controlled by the province.

2)   The tax rate. In an LSD, this is entirely controlled by the province. It is expressed as cents charged per $100 of assessed value. Our current rate is 83 cents.

3)   Example: A home assessed at $100,000 pays $830 in property taxes in 2013.

THE TAX RATE IN OUR COMMUNITY

1)  Our tax rate is 83 cents per $100

2)  The portion for local services such as garbage collection and fire protection is 25.16 cents of the 83 cents.

3)  The provincial portion is 57.84 cents

AVERAGE TAXES IN OUR COMMUNITY

Year Average Assessed Value Average Tax Bill

2011 $131,464 $1171

2012 $145,597 $1272

2013 $165,424 $1448

The average homeowner in our community is paying about 23% more in property taxes in 2013 than in 2011.

THE LSD BUDGET Service Cost

Administration $19,448

Rural Planning $64,624

Cost of Assessment $47,627

Fire Protection $173,939

Police Services $110,924

Dog Control $7,862

Recreation $1,400

Solid Waste $233,310

Total $659,134

CURRENT STATE OF RUSAGONIS-WAASIS LSD

Population

2011 3,318 residents 2006 2,747 residents 20.8% growth

Property value

2012: $245 million. 2007: $136 million 80% growth in five years.

With a population of more than 3,000 residents and a property tax base greater than $200 million dollars Rusagonis-Waasis has sufficient human and fiscal capacity to establish a viable Rural Community.

FUTURE CHALLENGES FOR OUR COMMUNITY

•  We are one of the fastest growing communities in the province

•  The value of properties in our community is rising rapidly, making us an attractive target for other cash-strapped municipalities.

•  Over the past five years, the provincial government has become concerned about the sustainability of local government. This led to studies such as the Finn Report, which recommended we become part of a regional municipality based around Oromocto.

THE RURAL COMMUNITY PROJECT

WHAT IS A RURAL COMMUNITY?

•  Is a form of municipal government •  Has a locally elected mayor and council •  The authority to own land, buildings, infrastructure and

equipment. •  Better access to federal and provincial funding programs, and

authority to borrow for capital projects. •  Puts community decisions in the hands of community members •  Has oversight over land use planning and zoning

TIMELINE

•  Informal discussions began in 2011 •  Worked with the province to learn more about the model •  A volunteer group known as the steering committee met over the

course of two years to discuss the benefits and costs of a rural community

•  A preliminary feasibility study was requested in spring 2012. •  The study began in spring 2013 and completed in June 2013 •  Widespread community discussion on the concept begin in

Spring / Summer 2013.

ABOUT THE PROPOSED RURAL COMMUNITY

•  The entire LSD of Rusagonis-Waasis and a small portion of the LSD of Gladstone that is accessed through Rusagonis-Waasis, would together form the Rural Community.

•  The name of the Rural Community would be Rusagonis-Waasis, but existing civic/postal addresses and community names would not change.

•  The council would consist of a mayor and four councilors. Mayor would be elected by the entire community, councilors would be elected according to a ward system.

WHAT SERVICES WOULD THE RURAL COMMUNITY PROVIDE?

•  Land-use planning

•  Emergency measures

•  Recreation and Community Services

•  Administration

WHAT SERVICES WOULD THE PROVINCE CONTINUE TO PROVIDE?

•  Police and fire protection

•  Garbage

•  Roads

•  Animal Control

WHAT WOULD A RURAL COMMUNITY COST?

•  The cost of forming a rural community is approximately $102,460.

•  This equals an increase of 1.15 cents per $100 of assessed value for a residential homeowner.

IMPACT ON PROPERTY TAXES

Property type 2013 Tax Rate

2013 Tax Bill

2014 Impact 2015 Impact

Residential (Owner-Occupied)

$.83 $830 +$11 -$18

Residential (Non-Owner-Occupied)

$1.65 $1,651 +$6 -$23

Other Residential (Farms, Woodlots)

$1.65 $1,651 +$6 -$23

Business $2.48 $2,480 +$17 -$26

*Tax bill value and impact based on a home valued at $100,000

NEXT STEPS

•  Community-wide consultation and discussion on the feasibility of a rural community. June to August 2013

•  Gauge community interest in the concept and decide whether there is sufficient interest to hold a community-wide vote (plebiscite). August 2013

•  If there is sufficient interest, request a plebiscite is held in October 2013

•  If a majority of voters support the rural community concept, it would come into effect on July 1, 2014.

•  Municipal elections for mayor and council would be help in May 2014.

POTENTIAL ADVANTAGES

•  Have a greater say over development so that we can preserve our unique, rural way of life.

•  Work with developers to set aside land for future community use such as parks, playgrounds or green space.

•  Protect and support resources that have been built by volunteer efforts in the community

•  Demonstrate the capacity for local governance and shows that there is no need or requirement to merge our community with anyone else.

POTENTIAL DISADVANTAGES

•  There is a small start-up cost to pay for the administration of a rural community.

•  Can be sued.

•  A rural community council can own land, buildings and can take on debt.

•  Has the authority to institute by-laws that can affect community members.

QUESTIONS AND COMMENTS?