8- PORT PERRY STAR - Tuesday, January 27, 1998 "Scugog's Community Newspaper of Choice" Brace yourself: Tax hike's likely in '98, councillors say By John B. McClelland Port Perry Star Scugog ratepayers could be in for a nasty shock later this spring: a tax hike; the first in several years. And if that happens, newly elected Mayor Doug Moffatt wants to make sure that it is not because of wild spending on the part of Scugog Township councillors. "People must understand that the municipal portion of their tax bill is being well managed," he said Monday morning as the finance committee held a lengthy and detailed meeting on the upcoming budget. "We (the township) have to show people what caused (any) increase in taxes," said the mayor. ¢ After the meeting, he told the Star that spelling out to residents exactly why their property taxes are going up -- if that happens -- could take the form of a special notice mailed out with the tax bills. Or, any increase could be spelled out directly in the budget document itself, he suggested. In any event, the message the mayor wants to get to the people is that if their taxes go up in 1998, "it won't be our (local council's) fault. At least it better not be our fault." The township's treasury department, in a report presented to the finance com- mittee on Monday, notes that Scugog is facing a revenue shortfall of about $548,000 this year compared with 1997. Most of that shortfall is a result of the loss of $440,000 from the provincial gov- ernment in what used to be called the a municipal support grant. It won't be in the mail from Queens Park in 1998. And there are other major unknown variables facing Scugog in what is becom- ing an incredibly complex process for setting a new budget this year. The first is the impact of a new method of setting assessment values on property. This year it will be on the actual 1996 value of each specific property. That information is expected in the near future from the provincial assessment department. As well, Scugog does not yet know how much of a tax hike may be required at the regional level. Durham officials are suggesting the region may need an additional $10 million in 1998. Also unknown at this time is the impact of changes in the farm tax rebate plan, and the loss of revenue from busi- ness occupancy taxes. The latter in Scugog's case is estimated at about $130,000. Township administrator Earl Cuddie pointed out to the committee on Monday that loss of $130,000, and any loss in farm taxes, is money that the township is going to have to make up from some- place else. "The demand and the need for those tax dollars is not going to go away, no matter how much shuffling and reshuf- fling is done," said Mr. Cuddie. He is not confident that statements by Ontario Premier Mike Harris that downloading and other changes imposed by the province will end up "revenue neutral" when it comes to the final bill for property owners. "It (downloading) will gobble up more than the province has put back," he pre- dicted. And Scugog treasurer Kathryn McCann told the committee that based on the information the municipality now has, "individual tax bills are going to go up." Preliminary estimates for 1998 show that Scugog needs to raise $4,352,778 in property taxes to pay the bills this year. Homeless teens spending winter ni From page 1 nagers aged 15 to 17 who have no place to go at night, and teenage girls as young as 15 are "doing anything to get money." And she cited one recent case where a local store was robbed by a teenager "desperate to get money to buy food." Ms Hill said she approached township council for assistance because she is very concerned, and doesn't know where else to go after being turned away by social service agencies. "What they (the teenagers) need is a place to go at night, where they can get a cot to sleep and some food," she told council. Councillors were dismayed to hear that this kind of "inner city" issue is appearing in the community. And they agreed they don't have any ready-made answers for what is a complex societal problem. Council members agreed, however, that they can't just turn a blind eye to the problem. Mayor Doug Moffatt said he will open dialogue with the Childrens Aid Society to see if there are long-term solutions that can be tried. And Ward 2 rep Ken Carruthers will get in touch in with local churches to see if they can assist on a short-term basis to make sure teens at least have a place to get in out of the cold at night. Ms Hill told council she would be willing to attend a meeting with church groups and relate the story. She said teens in this situation don't qualify for welfare because they don't have a permanent address. While stating that something should be done ghts outside, speaker says about the issue, councillors were concerned about getting the municipality involved in a long-term solution, as this might just encourage other teens to move out of their family homes for trivial reasons. "Some of the teens don't want to go home (to their parents) for very good reasons, others because their parents tell them to be in at midnight," said Regional Councillor Ken Gadsden. "This is a very complex issue and I don't have any answers," Ms Hill said she has tried to help individuals. Others have turned down offers by Durham Police to drive them to Oshawa, where they can at least get a warm place to sleep for the night. : She said the door to the Water St. building has been damaged recently by teens trying to get into the, lobby to stay overnight. 5 YEAR: 10 YEAR: 18.5% Build Yourself A Future: Fidelity International Portfolio The Fidelity International Portfolio is the only fund you may need for the foreign content portion of your RSP. This fund gives you exposure the developed markets of the U.S., Europe and Japan as well as the emerging markets of Southeast Asia, Latin America and Eastern Europe. Unlike other global or international funds, the Fidelity International Portfolio does not exclude specific countries or regions from its investment mandate. This provides the flexibility for the fund managers to take advantage of investment opportunities all over the world. For more information on a sensibly conservative strategy dedicated to building growth and preserving capital for your RSP investments, please call me for a free copy of our Mutual Fund Spotlight, which highlights on our top 27 mutual funds Call Investment Advisor Robert J. Gow, FCSI (905) 434-7156 or 1-800-267-1522 Professional Wealth Management Your RSP is a 'magic box' I remember when I first same manner. They may started in school I learned Over the next few advantages to their fullest my ABCs without really understanding how these letters would later enable me to create sentences, paragraphs - even newspa- per columns like this one. I find many Canadians treat their Retirement know something about it now, and they may think about it once a year, but like understanding your ABCs, understanding your RSP will allow you to tell a wonderful story when you're older and you know how all its parts go togeth- INVEST WISELY: Important information about this mutual fund is contained in the simplified prospectus. Investors should obtain a copy from their Investment Advisor and read carefully before investing. Returns to Decernber 31, 1997 are historical annual compounded total returns including changes in unit value and reinvestment of all distributions, and do not take into account sales, redemption or optional charges payable by an investor which would have reduced returns. When purchasing mutual funds, investors should be aware that: » mutual fund investments are not guaranteed, * unit values and investment returns will fluctuate over time; and + past performance does ot assure simiar future returns. Fidelity has agreed to pay part of the cost of this advertisement. ----: ORS Savings Plan (RSP) in the er. BERKSHIRE INVESTMENT GROUP INC. R.M. (MIKE) McLAREN AIC ADVANTAGE FUND * Re-opened Jan. 1, 1998 » Limited Time Opportunity | A EAR 3 YEAR 5 YEAR 10 YEAR | 43.3" 46.1" ARP GF 14 0% FOREIG! aa [IYEAR™ 3YEAR SYEAR 10 YEAR 137.3% 34.7% 26.1 N/A* Co-sponsored 3 "AIC Advantage Fund capped 1o how investors 96. 3nd pa-opened Frrited y Advantage Fund i) after hat date. The rsarves the dght Io recommence the acceptance of purchases and transfers from Ghar lune af a Aiur cate, All relums an annual total rates of relums as of Doc. 31/97. These rehums reflect or par Ar ott on Important information about any mutual kind Is contained in is simpiiled prospechus. You can obtain one from AIG Limited by calling 1-800-263-2144 or Swough your financial advisor. Please read your prospackis carey bolors inveeing RRSP'S & RRIF SPECIALIST 985-0948 1-888-522-0844 weeks I'll be writing a series of columns about the basics of RSPs, including some "tried and true" investment strategies that will increase the growth power of your RSP - so you have more money when you want to retire. If you're looking to start with a definition, you could say an RSP is a tax-shel- tered investment vehicle that provides individuals with an effective means of saving for retirement. We say "vehicle," but you can think of it as a spe- cial "box" that the govern- ment makes you register at a financial institution. What makes this "box" special is two-fold: first, contributions to the box result in a tax deduction, 80 you pay less income tax, and second, the money your contributions earn in the box gets to grow on a tax-deferred basis, which means you don't pay tax on that growth until you take the money out of the box. While most people rec- ognize the benefits of investing in an RSP, many do not exploit its unique potential. There are three primary benefits to invest- ing in an RSP. Today, we'll look at one of them: tax savings. We all like to save taxes. RSPs are the best tax-saving investment in Canada. Basically, what you contribute to your RSP is deductible for tax pur- poses. This deduction reduces your amount of taxable income and thus your tax payable. The actual tax savings will depend on your marginal tax rate. For example, if your tax rate is 40 per cent, you'll et back $400 of every 1,000 you put in your RSP. Which means you're actually contributing $1,000 for just $600. That's a great deal. In another article, we'll look at tax-deferred com- pounding in your RSP, Courtesy of, Robert Gow, Investment Advisor Oshawa Branch of RBC Dominion Securities od mm _--_------._.------_.--------_----_--_--w"-.. ET ___| BT -- CA hy wha GY