By Pepper Parr
April 4, 2015
BURLINGTON, ON
It was a little complicated but for Russ Weegar it was pretty simple. We paid the taxes, we are entitled to a rebate and we would like that rebate if you don’t mind
Russ Weegar and Pastor Rosalie Schwarm delegating before a Standing Committee.
Weegar and Pastor Rosalie Schwarm were delegating on behalf of Lighthouse Church International requesting a grant.
Lighthouse is a non-profit, non-denominationalchurch with charitable status that has in the past provided funding to various Burlington community programs (West Plains Food Bank and Habitat for Humanity) as well as pastoral advocacy services to indigenous groups, locally and internationally.
They used to lease space on Fairview Street. Property taxes were included in their rent. They have been leasing their current location since October 1, 2012.
Where a charity leases space in a taxable building, the charity is eligible for a rebate equal to 40% of the taxes paid by the charity. A charity rebate application was submitted in November 2014 for the years 2012 (part year), 2013 and 2014.
And this is where the problems for the Lighthouse Church began. Only the 2014 tax year rebate was processed because they did not get their application for the rebate in on time.
Weegar pointed out that they didn’t even know they were entitled to a charitable rebate.
When the city collects taxes – they don’t get to keep all the money. City hall collects taxes for the Region and for the school boards.
Of each dollar collected in taxes 28.2% goes to the city; they send 24.6 % to the Region and 47.2% to the province on behalf of the school boards.
The city denied the applications for 2012 (part year) and 2013 because they had missed the deadlines – which Weegar continually pointed out they weren’t aware of – had the 2012 and 2013 applications been submitted before the respective deadlines, the rebates would have been shared as follows:
2012 2013 Total
City 605.70 2,476.64 3,082.34
Region 571.09 2,237.16 2,808.25
School Boards 1,095.02 4,312.98 5,408.00
Total $2,271.81 $9,026.78 $11,298.59
Filing deadlines are legislated under the Municipal Act and must be made after January 1 of the year and no later than the last day of February of the following year.
The municipality may accept applications after that deadline if, in the opinion of the municipality, extenuating circumstances justify the applicant being unable to make the application by the deadline.
“Extenuating circumstances” generally means an event that is unusual or beyond the control of the parties. In this case, Lighthouse Church explained that they did not know about the rebate until 2014. Not knowing about a rebate or deadline is not considered an extenuating circumstance.
The Municipal Act does give a municipality with the general power to make grants if Council considers to be in the interests of the municipality.
If council chooses to provide a grant to Lighthouse Church, there is the risk that other charitable and non-profit organizations, which have missed application deadlines, may seek similar funding in the future.
Rosalie Schwarm – Pastor at the Lighthouse church
City Council has made grants to other charitable organizations in the past – The Humane Society had taxes written of – the circumstances were deemed to be extenuating.
There hasn’t been a single grant application since the Humane Society was given a helping hand.
The Lighthouse Church at this point does not have a home. Their congregation of about 85 people has dwindled as a result but they continue to do what they believe they were sent here to do – help people. In the meantime they meet in people’s homes and hold their services.
In the past the church has sent people to Cuba. Yemen, Bulgaria and the Congo.
At one point they had a home in Waterdown where they rented from another church that decided they wanted to sell the property. Lighthouse could not afford to buy it at the time.
When it came to making a decision it took several votes to arrive at a decision that would get sent to the Council meeting on April 20th.
Councillor Meed Ward wanted the city to give Lighthouse a grant for the full amount they were asking for $11, 298.50 That got just three votes – they needed four
Give Lighthouse a portion of their ask including part that is educational and let them go to the Region and ask for a rebate at that level – that too lost
The final vote was to give the church the city portion – $3,082.30 – that passed.
Now that the Lighthouse church people understand the rules – expect them to mount a stronger argument at Council on the 20th.
In the meantime their Easter Sunday service will be in the home of one of the parishioners.
