Loading...
HomeMy WebLinkAboutCS 16-04PICKERING REPORT TO COUNCIL Report Number: CS 16-04 Date: June 7, 2004 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2004 Tax Rates for all Classes of Property Except Non- Residential 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 16-04 of the Director, Corporate Services & Treasurer be received and that; 2. the 2004 Non-residential tax rates for the City of Pickering be approved as contained in Schedule A to By-law No. 6341/04 attached hereto; 3. the tax levy due dates for the Final Billing be July 16, 2004 and September 29, 2004 excluding the industrial, multi-residential and commercial realty tax classes; 4. the attached By-law No. 6341/04, providing for the imposition of the non- residential 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 and the attached By-law provides for the approval of tax rates required to raise the levy approved in the 2004 Current Budget of the City of Pickering and to levy taxes for School Boards and for the Region of Durham. Report CS 16-04 Date: June 7, 2004 Subject: 2004 Tax Rates Except Non-Residential 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 2004 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 2004 final tax billing process will consist of two separate 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 June 1, 2004, City Council approved Report CS 14-04 of the Director, Corporate Services & Treasurer that provided for a property tax levy of $32,490,889 resulting in a budgetary increase of 8,9%, This increase is applied to the "City portion" of the property tax bill. Comparison of Pickerinq's Residential Total Tax Rate with our Eastern Neiqhbors Pickering 284,000 0.01326167 3,766.31 W hitby 284,000 0.01369123 3,888.31 $122.00 As the above chart indicates, Pickering residents continue to enjoy having the lowest tax rates and therefore, paying a lower property tax rate per assessment dollar. The total tax rates are used to facilitate an "apples to apples" comparison. With the transfer of solid waste responsibility to the Region, the total tax rates had to be used for comparison purposes. Report CS 16-04 Date: Subject: 2004 Tax Rates Except Non-Residential and Final Tax Due Dates for All Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes June 7,2004 Page 3 2004 Tax Rates & Property Taxes The 2004 tax rates are based on the revised assessment data that reflects higher assessment values due to the change in the valuation date from June 2001 to June 2003. As expected, property values have increased over the last two years which has resulted in an increase in property assessment values. In other words, 2004 tax rates have been calculated to reflect the increase in property assessment values. When re- assessment occurs, many taxpayers are confused as to why their property tax bill does not reflect the various budgetary changes as announced by the different levels of Government. Table One provides a summary of the municipal tax changes by basically eliminating the effects of property re-assessment. (Table One measures the property tax bill change by using the 2003 tax bill as the basis for the calculation.) Table One Government Budgetary Percentage % Level Increase On Tax Bill Total City Region Sub Total Est. Regional Waste Change Est. Regional Tax Policy Changes Total Increase 8.90 25.75 2.3 6.63 50.16 3.3 5.6 1.5 0.8 7.9 A residential property that has a property tax increase above 7.9% is mainly due to the fact that their property's assessment value increase was above the municipal average increase of 13.15 per cent. In other words, for those properties who had a residential assessment increase below 13.15%, they will experience a smaller increase on their property tax bill. For the 2004 taxation year, the City of Pickering transferred responsibility and corresponding costs for solid waste to the Region of Durham. This transfer resulted in the Durham Region Waste Tax Rate increasing from 0.00034263 to 0.00049675 or 64.5%. The transfer has resulted on an average increase of approximately $55.00 on the Regional portion of the property tax bill in addition to the Region's general budgetary increase. This year, Regional Council approved changes to the tax ratios such as lowering the large industrial tax ratio which has shifted property tax responsibilities onto the residential property tax payer. Report CS 16-04 Date: June 7, 2004 Subject: 2004 Tax Rates Except Non-Residential and Final Tax Due Dates for All Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes Page 4 Tax Rate Based On Best Estimate The City of Pickering is able to retain the education portion of the property taxes of 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. When the City received the assessment roll in December of last year, for 2004 tax billing, the negotiated settlement for the OPG property was not reflected in the returned roll. At the end of May, the City received from MPAC, a 2004 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 2004 tax rates. Tax Due Date Installments Recommendation 3 provides for the due dates for the payment of residential taxes being July 16, 2004 and September 29, 2004. In the past, the first residential final installment has traditionally been by the end of June. The last installment has always been around the end of September. Last year, due to the late receipt of information, the residential due dates were August 15, 2003 and September 26, 2003. In order to meet the Provincial billing requirements of 21 days notice, the tax bills have to be in the mail by June 24, 2004. Other Recommendations 1 and 2 provide for the levying of all tax rates on all classes of property except for the non residential properties where the tax rates and the property taxes 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 non-residential tax rates and tax billing hopefully for Council's summer meeting. Staff's preliminary estimate for the final non-residential due date is October 15, 2004. Changes to the Billing 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 Report CS 16-04 Date: Subject: 2004 Tax Rates Except Non-Residential and Final Tax Due Dates for All Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes June 7, 2004 Page 5 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. (Sect/on 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 2004 Tax Rates Except Non-Residential Installment Due Dates for All Realty Classes Except Non-Residential & Final Prepared By: Stan Karwowski Manager, Finance & Taxation Approved / Endorsed By: Director, Corporate Services & Treasurer GAP:vw Attachment Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council Thomas J. Quinn, Chief Administrative Officer BY-LAW NO. 834i/04 Being a by-iaw to adopt the estimates of all sums required to be raised by taxation for the year 2004 and to establish the Tax Rates Except Non-Residential 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 properly 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 Picketing 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. 29-2004 to establish tax ratios and By-law 27-2004 to adopt estimates of all sums required by The Regional Municipality of Durham for the purposes of the Regional Corporation and By- law 30-2004 to set and levy rates of taxation for Regional Solid Waste Management and By-law No, 28-2004 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 2004 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 2004; and, WHEREAS an interim levy was made by the Council of The Corporation of the City of Pickering (pursuant to By-law No. 6257/04) 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: For the year 2004, The Corporation of the City of Pickering (the "City")'on June 1st, approved Council Report CS 14-04 and corresponding schedules and attachments as presented including the budgetary levy of $32,336,812 and assessment growth of $154,077 for a total tax levy of $32,490,889. For the year 2004, 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. The levy provided for in Schedule "A" shall be reduced by the amount of the interim ~evy for 2004. The Tax Levy due dates for the Final Billing be July I6, 2004 and September 29, 2004 for all classes excluding the non-residential tax classes (commercial, industrial and multi-residential.) 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 :he ~::;ty of ;-:ici<erina i:na-i ail :emainina sections a '~: ~is s.F.c Bchaduies ~'A" continue in :orca and effec":, This By-iow comes into force on ~ne date of its i'inai passing. BY-LAW read a first, second and third time and finally passed this 7th day of June 2004, David Ryan, Mayor Bruce Taylor, Clerk By-Law No. 6341104 Schedule A 2004 Tax Rates 2004 City Region Education CV_..AA Tax Rate Tax Rate Tax Rate Property Class Residential 6,924,776,696 0.00347988 0.00682179 0.00296000 Farm 66,843,070 0.00086997 0.00170545 0.00074000 Managed Forest 4,420,500 0.00086997 0.00170545 0.00074000 Pipelines 22,782,000 0.00427816 0.00838670 0.01596771 Total Picketing Region Education TOTAL Tax Rate B IlinR Billin<~ B Itinn BILLING 0.01328167 24,097,392 47,239,372 20,497,339 91,834,103 0.00331542 58,151 t t 3,998 49,464 221,613 0.00331542 3,846 7,539 3,271 14,656 0.02863257 97,465 191,066 383,776 652,307 Total Payments in Lieu Properties 7,018,822,266 Residential 88,954,340 0.00347988 0.00682179 0.00296000 Residential - Tax Tenant 64,856,320 0.00347988 0,00682179 0.002960D0 Residential- General 42,569,140 0.00347988 0,00682179 Farm 44,595,600 0.00086997 0.00170545 0.00074000 Farm- Tax Tenant 10,542,800 0.00086997 0.00170545 0.00074000 $ 24,256,854 $ 47,551,975 $ 20,9t3,850 $ 92,722,679 0,01326167 309,550 606,828 263,305 1,179,683 0.01326167 225,692 442,436 191,975 860,103 0.01030167 148,135 290,398 438,533 0.00331542 38,797 76,056 33,001 147,853 0.00331542 9,172 17,980 7,802 34,954 Total PILS 251,518,200 $ 731,347 $ 1,433,698 $ 496,082 $ 2,661,126 Total Assessment 7,270,340,466 Footnotes Payments in lieu of taxes at the General Rate excludes the education tax rate component. $ 24,988,201 $ 48,935,672 $ 21,409,932 $ 95,383,806 07/0c~2004 By Law Schedule 2004 Final Tax Billing Non Capped.xls