HomeMy WebLinkAboutCS 30-03
Citq o~
REPORT TO FINANCE &
OPERATIONS COMMITTEE
Report Number: CS 30-03
Date: June 18, 2003
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
2003 Tax Rates for all Classes of Property and Final Tax Due Dates for
All Realty Tax Classes Except for Commercial, Industrial & Multi-
Residential Realty Classes
Recommendation:
1.
It is recommended that Report CS 30-03 of the Director, Corporate Services &
Treasurer be received and that;
2.
the 2003 tax rates for the City of Pickering be approved as contained in
Schedule A to By-law No. 6160/03 attached hereto;
3.
the tax levy due dates for the Final Billing be August 15, 2003 and September
26, 2003 excluding the industrial, multi-residential and commercial realty tax
classes;
4.
the attached By-law No. 6160/03, providing for the imposition of the tax rates
approved under Recommendation 1 above, be read three times and approved;
5.
the Director, Corporate Services & Treasurer be authorized to make any
changes or undertake any actions necessary, including altering due dates, in
order to ensure the tax billing process is completed;
6.
the Director, Corporate Services & Treasurer be authorized to make any
changes to the final tax rates to comply with Provincial regulations; and,
7.
the appropriate City of Pickering officials be authorized to take the necessary
actions to give effect thereto.
Executive Summary: Adoption of the above recommendations a nd t he attached
By-law provides for the levying of tax rates required to raise the levy approved in the
2003 Current Budget of the City of Pickering and to levy tax rates for education and for
the Region of Durham.
Report CS 30-03
Date: June 18, 2003
Subject: Tax Rates for all Classes of Property and Final
Tax Due Dates for All Realty Tax Classes Except for
Commercial, Industrial & Multi-Residential Realty Classes
Page 2
Financial Implications: Adoption of the recommendations and passing the by-law
will allow staff of the Corporate Services Department to bill the Final 2003 levy for all
properties except for the industrial, commercial and multi residential tax classes.
Passing of the by-law will assist the City of Pickering to meet its financial obligations
and reduce any borrowing costs.
Background:
components:
The 2003
final tax billing process will consist of two separate
1.
2.
residential properties; and,
commercial, industrial and multi-residential realty classes.
Later this year, a report will be presented to Council asking for Council's approval to bill
the non-residential tax classes. The non-residential tax classes are subject to tax
capping and Pickering's staff in conjunction with the other lower tier municipal tax staff
and the Region's finance staff will be working on the tax capping calculations during the
summer.
City's Net Tax Levy and Tax Rate Increase
On March 24, 2003, City Council approved Report CS 05-03 of the Director, Corporate
Services & Treasurer that provided for a levy of $29,694,042 resulting in a budgetary
increase of 4.9% and an overall increase of 6.8%. This increase is applied to the "City
portion" of the property tax bill.
2003 Tax Rates & Property Taxes
The 2003 tax rates are based on the revised assessment data that reflects higher
assessment values due to the change in valuation from June 1999 to June 2001.
Table one below, provides a comparison of the property taxes to be levied on a typical
mid-price range single detached residential property assessed at $224,000 for 2002
and $251,000 for 2003. The median increase in residential assessment due to the
change in valuations from June 1999 to June 2001 was 12.05%. A residential property
that has an increase of less than 12.05% in current value assessment will experience a
smaller increase than that shown below as a result of the re-assessment.
Report CS 30-03
Date: June 18, 2003
Subject: Tax Rates for all Classes of Property and Final
Tax Due Dates for All Realty Tax Classes Except for
Commercial, Industrial & Multi-Residential Realty Classes
Page 3
Table One
2002 & 2003 Residential Property Taxes
2002 2003 INCR INCR.
$224,000 $251,000 $ %
ASSESSMENT ASSESSMENT
City $841.25 $898.45 $57.20 6.8
Region 1,637.21 1,750.35 113.14 6.9
Education 835.52 840.85 5.33 0.6
Total $3,313.98 $3,489.65 $175.67 5.3
Overall, the combined 2003 residential taxes for City of Pickering residents will increase
by $175.67 or 5.3% for a household assessed at $251,000. (The residential education
rate is established by the Province).
Tax Rate Based On Best Estimate
The City of Pickering is able tor etain the education portion 0 f t he property taxes 0 f
non-residential Payment-in-lieu (PIL) property. The City's largest PIL property is the
Ontario Power Generation (OPG) nuclear facility. As Members of Council are aware,
the assessment appeal (for the years 1999 to 2002) between the City and OPG has
almost reached a successful conclusion. During the last few months, MPAC staff have
been working on the revised Minutes of Settlement for the years 1999 to 2002 and are
at the stage where Draft Minutes of Settlement have been prepared.
When the City received the assessment roll in December of last year, for 2003 tax
billing, the negotiated settlement for the OPG property was not reflected in the returned
roll. On June 13, 2003, the City received from MPAC, a 2003 assessment estimate
reflecting the principles of the negotiated settlement for the Pickering nuclear facility.
However, this is still an estimate and subject to change. In addition, the industrial
assessment for the City and the OPG facility is based on MPAC's new Automated Cost
System or ACS. Concerns have been rasied by industry experts regarding the
valuations produced by ACS. At this current time, staff are using the best information
available to calculate the 2003 tax rates.
Tax Due Date Installments
Recommendation 3 provides for the due dates for the payment of residential taxes
being August 15, 2003 and September 26, 2003. Last year the residential due dates
were July 15, 2002 and September 16, 2002. In order to meeting the Provincial billing
requirements of 21 days notice, the tax bills have to be in the mail by July 25th.
Report CS 30-03
Date: June 18, 2003
Subject: Tax Rates for all Classes of Property and Final
Tax Due Dates for All Realty Tax Classes Except for
Commercial, Industrial & Multi-Residential Realty Classes
Page 4
Other
Recommendations 1 and 2 provide for the levying of all tax rates on all classes of
property even though the non residential properties will be billed at a later date because
the claw back percentages have not yet been determined. Staff have received advice
that the claw back percentages should be included in the billing by-law. Therefore,
staff will bring a separate report to Council regarding the tax billing of non-residential
realty classes hopefully for Council's summer meeting. Staff's preliminary estimate for
the final non-residential due date is October 29, 2003.
Chanaes to the Billina Schedule
Recommendation 5 and 6, will allow the Director, Corporate Services & Treasurer some
latitude, limited by Provincial legislation, in effecting whatever may be necessary in
order to ensure that the taxes are billed properly and in a timely fashion. It was always
staff's understanding that Recommendation 5 would be used to change the due dates
by a few days in order to meet Provincial legislation requirements. (Section 343,
subsection one of the Municipal Act states the property owner must have at least
twenty-one days to pay their taxes.) A report would be prepared to Council if there was
a substantial delay in the billing of the final taxes.
Attachments:
1.
By-law to Establish the 2003 Tax Rates & Final Installment Due Dates
Prepared By:
Approved 1 Endorsed By:
/,¿' ~-
Stan Karwowski
Manager, Finance & Taxation
.~ ~ .J.¿ ----... -
Glílis A. Paterson
Director, Corporate Services & Treasurer
GAP:vw
Attachment
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Council
.,r
ATTACHMENT#-L..ro REPORT#~30-o3
THE CORPORATION OF THE CITY OF PICKERING
BY-LAW NO. 6160/03
Being a by-law to adopt the estimates of all sums required to be
raised by taxation for the year 2003 and to establish the Tax
Rates necessary to raise such sums.
WHEREAS it is necessary for the Council of The Corporation of the City of Pickering,
pursuant to the Municipal Act, 2001, S.O. 2001, c25, as amended, to pass a by-law to
levy a separate tax rate on the assessment in each property class; and,
WHEREAS the property classes have been prescribed by the Minister of Finance under
the Assessment Act, R.S.O. 1990, ch.A.31 , as amended and its Regulations; and,
WHEREAS it is necessary for the Council of The Corporation of the City of Pickering,
pursuant to the Municipal Act, to levy on the whole ratable property according to the last
revised assessment roll for The Corporation of the City of Pickering the sums set forth
for various purposes in Schedule "A", for the current year; and,
WHEREAS the Regional Municipality of Durham has passed By-law No. 21-2003 to
establish tax ratios and By-Law 20-2003 to adopt estimates of all sums required by The
Regional Municipality of Durham for the purposes of the Regional Corporation and By-
Law 34-2003 to set and levy rates of taxation for Regional Solid Waste Management
and By-law No. 22-2003 to set and levy rates of taxation for Regional General Purposes
and set tax rates on Area Municipalities; and,
WHEREAS the Regional Municipality of Durham has provided the 2003 education tax
rates for the realty classes; and,
WHEREAS sub section 342(2) of the Municipal Act, 2001, S.O. 2001, c25, as
amended, permits the issuance of separate tax bills for separate classes of real
property for 2003; and,
WHEREAS an interim levy was made by the Council of The Corporation of the City of
Pickering (pursuant to By-law No. 6097/03) before the adoption of the estimates for the
current year.
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF
PICKERING HEREBY ENACTS AS FOLLOWS:
1.
For the year 2003, The Corporation of the City of Pickering (the "City") shall levy
upon the Property Classes set out in Schedule "A", the rates of taxation as set
out in Schedule "A", for the City of Pickering, the Region of Durham and for
Education purposes on the current value assessment as also set out in Schedule
"A". Where applicable, taxes shall be adjusted in accordance with Bill 140, as
amended and its Regulations.
2.
The levy provided for in Schedule "A" shall be reduced by the amount of the
interim levy for 2003.
3.
The Tax Levy due dates for the Final Billing be August 15, 2003 and September
26, 2003 for all classes excluding the non-residential tax classes.
4.
If any section or portion of this By-law or of Schedule "A" is found by a court of
competent jurisdiction to be invalid, it is the intent of Council for The Corporation
of the City of Pickering that all remaining sections and portions of this By-law and
of Schedules "A" continue in force and effect.
5.
This By-law comes into force on the date of its final passing.
BY-LAW read a first, second and third time and finally passed this 23rd day of June
2003.
Wayne Arthurs, Mayor
Bruce Taylor, Clerk
By-Law No. 6160/03
Schadula A
2003 Tax Rat..
2003 City Region Education Total Pickeril19 Region Education TOTAL
CVA Tax Rate Tax Rate Tax Rate Tax Rate §!lling §!lling §!lling BilLING
Property Class
Reslden"" 6.033.290.345 0.00357950 0,00697352 0.00335000 0.01390302 21.59£.163 42.073.271 20.211.523 83.860.956
Falm 56.676.359 0,00089488 0,00174338 0.00083750 0,00347576 50,719 96,606 47.466 196.993
Managed Forest 2,184,990 0,00089488 0.00174338 0.00083750 0.00347576 1,955 3,609 1.630 7,595
Mu",.ReSidential 53,440,330 0,00810005 0,01578038 0,00335000 0.02723043 432,869 643,309 179,025 '1,455,203
CommefCial 481,864,415 0.00530446 0.01033406 0,01770647 0.03334499 2,556,031 4,979,616 8,532,116 16,067.764
Comm€fcial.Genaral 0.00530446 0,01033406 XXXXXXX 0.01563852
Commercial. Excess Land 9,141,545 0.00371312 0.00723363 0.01239453 0,02334128 33,944 66,127 113,305 213,375
Commercial Vacant Land 10,247,000 0.00371312 0,00723363 0,01239453 0.02334128 38,048 74,123 127,007 239,176
Shopping Centres 251,547,145 0.00476074 0,00927478 0.01589150 0,02992702 1,197.551 2,333,044 3,997.461 7,528.056
Shopping Centres Excess Land 242,000 0.00333251 0.00649235 0.01112405 0.02094891 806 1,571 2.692 5,070
Office Building 17,488,000 0.00530446 0,01033406 0,01770647 0.03334499 92.764 180,722 309,651 583.137
Office Building Excess Land 0.00371312 0.00723363 0,01239453 0.02334128
Industrial 119,814,485 0,00808895 0.01575877 0,02193986 0.04578758 969,173 1,888,129 2,626.713 5.466,015
Industrial Excess Land 2,BI1,760 0.00525782 0.01024340 0.01426091 0.02978213 14,784 28,602 40,098 63.684
Industrial Vacant Land 27,928,000 0.00525782 0.01024340 0.01426091 0.02976213 146,840 286,078 396,279 831.197
large Industrial 29,684,870 0,01005303 0.01958513 0.02726705 0.05890521 296.423 581,382 609.419 1,689.224
Large Industrial. Excess land 594,930 0.00653447 0.01273016 0.01772359 0.03698822 3,666 7,574 10,544 22,005
Parking Lot Full 0.00530446 0.01033406 0.01770647 0,03334499
Parking Lots Excess Land 0.00371312 0,00723363 0.01239453 0.02334128
Pipelines 21,631,000 0.00440064 0,00857325 0.01625565 0.02922954 95,190 165.446 351,626 632,264
Total 711B5B7174 $ 27.529,148 $ 53,631.812 $ 37,760,757 $ 118.921,718
Pavments In Lieu Prooerties
Residential 120,386,150 0,00357950 0,00697352 0.00336000 0.01390302 430,922 839,515 403.294 1,673,731
Residential. Tax. Tenant 64,684,645 0.00357950 0,00697352 0.00335000 0.01390302 231,539 451,080 216,694 899.312
Residential. Gen 36,904,905 0.00357950 0.00697352 XXXXXXXX 0.01055302 132,101 257,357 369.456
Farm 0.00089488 0,00174338 0.00083750 0.00347576
Managed Forest 0.00089488 0,00174338 0.00083750 0.00347576
Multi Res 0.00810005 0,01578038 0,00335000 0.02723043
Commercial Full 40,194,345 0.00530446 0.01033406 0.01770647 0,03334499 213,209 415,371 711.700 1,340,280
Commercial Full. Shared PIL 20,094,605 0.00530446 0.01033406 0.01770647 0,03334499 106,591 207.659 355,805 670,054
Commercial Full. Tax. Tenant 2,005,380 0.00530446 0,01033406 0,01770647 0,03334499 10,637 20,724 35.508 66.869
Commercial Gen 7,854,645 0.00530446 0,01033406 XXXXXXXX 0.01563852 41,665 81,170 122.835
Commercial Full- Excess Land 8.424,855 0.00371312 0,00723363 0,01239453 0,02334128 31,282 60,942 104.422 196,647
Commercial Gen, Excess Land 251,420 0.00371312 0.00723363 XXXXXXXX 0,01094675 934 1,819 2,752
Commercial Gen - Vacant Land 2.162,000 0.00371312 0,00723363 XXXXXXXX 0.01094675 8,028 15.639 23.667
Commercial Vacant land Full 0.00371312 0.00723363 0.01239453 0,02334128
Office Buildil19 Full. Shared PIL 4,711,635 0.00530446 0.01033406 0.01770647 0,03334499 24,993 48,690 83,426 157,109
Office Building Gen 0,00530446 0.01033406 XXXXXXXX 0.01563852
Office 6uildin9 Excess Land Full 0.00371312 0.00723363 0,01239453 0.02334128
Office Building Excess land Gen 0.00371312 0.00723363 XXXXXXXX 0.01094675
Parking Lot Full 75,000 0,00530446 0,01033406 0,01770647 0.03334499 398 775 1,328 2,501
Industrial Full 961,685 0,00808895 0,01575877 0,02193986 0,04578758 7,779 15,155 21,099 44,033
Industnal Gen 0.00808895 0.01575877 XXXXXXXX 0.02384772
Industrial Full- Shared PIL 14,581,080 0,00808895 0.01575877 0,02193986 0.04578758 117.946 229,780 319,907 667,632
Industrial Full- Tax Tenant 148,595 0,00808895 0.01575877 0.02193986 0.04578758 1,202 2,342 3,260 6,804
Ind. Exc... Land. Shara<! PIL 7,847,190 0,00525782 0.01024340 0.01426091 0.02976213 41,259 80,382 111.908 233,549
Industrial Excess Land Gen 0,00525782 0,01024340 XXXXXXXX 0.01550122
Industnal Vacant Land Full 1,956,905 0.00525782 0.01024340 0.01426091 0.02976213 10,289 20,045 27,907 58,242
Industrial Vacant Land Gen 829,500 0,00525782 0.01024340 XXXXXXXX 0.01550122 4,361 8,497 12,858
Large Industrial Full. Shared PIL 74,159,325 0.01005303 0,01958513 0.02726705 0.05690521 745,526 1,452.420 2,022,106 4,220,052
Large Industrial Gen 0.01005303 0.01958513 XXXXXXXX 0.02963816
Large Ind Excess Land. Shared Pil 649,335 0.00653447 0.01273016 0.01772359 0,03698822 4,243 8,266 11,509 24,016
Total PllS 408,883,200 $ 2,164.904 $ 4,217,628 $ 4.429,873 $ 10,812.404
Exempt 251,638,844
Total Assessment 7,779,309,218 $ 29,694,042 $ 57,849.440 ~ $ 129.734.122
~
Payments in lieu of taxes at the General Rate excludes the education tax rate component.