Catalyst made good on its threat not to pay its full municipal tax bill, and while a meeting about provincial bridge funding has been set the company's court action looms.

City director of finance Ann Hopkins confirmed that the corporation partially paid its tax bill Thursday, July 2.

“They gave two cheques: one for $1.5 million for municipal taxes, and another for $559,757 for collection of other taxes school, regional district and hospital,” she said.

In another development, city manager Ken Watson confirmed that a meeting between municipalities and Bill Bennett, the B.C. Minister of Community and Rural Development will take place next week to re-visit the issue of bridge funding.

Previously, the government stated that they won’t subsidize a private corporation. “I haven’t heard differently with regard to their position,” Watson said.

Regarding their partial payment of municipal taxes, a letter from Catalyst CEO Richard Garneau to Mayor Ken McRae notes that the amounts are significantly less than what was billed, but still 30 per cent more than the cost of services provided.

Catalyst’s total municipal tax bill was $4,846,464, leaving a shortfall of $3,346,464.

“We regret the circumstances that resulted in this disparity,” Garneau wrote.

Previously, Catalyst informed the city that they would pay their municipal taxes based on a consumptive based tax rate.

The company has tried to sensitize the city to its situation, commitment to a sustainable municipal tax structure, and “…the need for your community to also adjust to the fiscal situation that both Catalyst and the world finds itself in,” Garneau wrote.

Mayor Ken McRae responded with a letter to city residents “Council is concerned about the ability of residential tax payers to pay higher taxes given the social indicators for the Alberni Valley,” he wrote. “Deeper reductions demanded by Catalyst, are unsustainable and would disrupt the needed services provided to our community.”

A court date hasn’t been set yet to hear Catalyst’s challenge to municipal tax bylaws, but it’s in the works, city manager Ken Watson said.

“The date is pending, but it should happen this summer,” Watson said. “The outcome shouldn’t take long, and we should know the final outcome by fall.”