Dispute with NCC adds to tax increase in Chelsea, Que.

Councillors in Chelsea, Que., passed a budget Tuesday evening with a 3.5 per cent tax increase,placing part of the blame at the feet of the National Capital Commission.

The NCC disputed its property assessment in 2018 and submitted $242,000 less than Chelsea demanded.

The community expects that the agency will make the same decision in 2019, leaving municipal coffers short.

"It is higher than our usual increases,"said MayorCarylGreen.

"We have tried to stay at the cost of living, however there is $500,000 that is missing from our 2018-2019 [budgets] because of the non-payment of taxes from the NCC."

Talks ongoing

There are other factors driving the increase as well, with higher costs for road salt and higher payments to the regional municipality.

For an average home in the community valued at $409,300, the increase will mean an additional $106 in property taxes per year.

• Tax dispute between Chelsea, NCC could cost residents

The community is in talks with the NCC about the issue and Green said she hopes the two sides can come to a settlement.

"My hope is it can be resolved without going to court," she said.

NCC disputes value

The NCC has said itdisagrees with property valuations.

Spokesperson Jean Wolff said last month some of the municipality's assessments of its property valueshave gone up by close to 20 per cent.

"Like with any property owner, private or public, there are occasions when assessments are questioned," Wolff wrote in an email.

He said the NCC is "committed to resolving this matter" and will work with the municipality to "identify a reasonable outcome."

Green said the community can't cave on this issue, because it will mean lower payments from the NCC going into the future.

"We'll hold our position. Certainly residents are very supportive," she said.