Loading...
HomeMy WebLinkAboutCS 38-05PICKERING REPORT TO EXECUTIVE COMMITTEE Report Number: CS 38-05 Date: June 10, 2005 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2005 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: 0 It is recommended that Report CS 38-05 of the Director, Corporate Services & Treasurer be received and that; the 2005 Residential tax rates for the City of Pickering be approved as contained in Schedule A to By-law No. 6534/05 attached hereto; the tax levy due dates for the Final Billing be July 15, 200!5 and September 29, 2005 excluding the industrial, multi-residential and commercial realty tax classes; the attached By-law No. 6534/05, providing for the imposition of the tax rates approved under Recommendation 1 above, be read three times and approved; 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; the Director, Corporate Services & Treasurer be authorized to make any changes to the final tax rates to comply with Provincial regulations; and, 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 approvai of tax rates required to raise the levy approved in the 2005 Current Budget of the City of Pickerin§ and to levy taxes f,..~r School Boards and for the Region of Durham. Report CS 38-05 Date: June 10, 2005 Subject: 2005 Tax Rates and Final Page 2 Tax Due Dates for All Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes Financial Implications: Adoption of the recommendations and passing the by-law will allow staff of the Corporate Services Department to bill the Final 2005 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: The 2005 final tax billing process will consist of two separate components: 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 May 2, 2005, City Council approved Report CS 30-05 of the Director, Corporate Services & Treasurer that provided for a property tax levy of $34,277,887 resulting in a budgetary increase of 5.5%. This increase is applied to the "City portion" of the property tax bill. Comparison of Pickerinq's Residential Total Tax Rate with our Eastern Neighbors Total TaxRate Pickering 284,000 0.01380542 3,920.74 Ajax 284;000 0.01425260 4,047.74 $127.00 Whitby 284,000 0.01431210 4,064.6z~ $143.90 As the above chart indicates, Pickering residents continue to enjoy having the lowest tax rates and therefore, are paying lower property taxes 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 tota! tax rates had to be used for comparison purposes. Report CS 38-05 Date: June 10, 2005 Subject: 2005 Tax Rates and Final Tax Due Dates for All Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes Page 3 2005 is not a "re-assessment year" and the valuation date of June 30, 2003 remains unchanged from 2004. Therefore the only tax increase experienced by property owners this year will be due to City of Pickering and Region of Durham budgetary increases. For 2006 taxation, the valuation date will be changed from June 30, 2003 to January 1, 2005. With the City, being located closest to Toronto, (in relation to the other Durham Lakeshore municipalities), the City may experience higher than average reassessments in contrast to other Durham Lakeshore communities. It is anticipated that the mailing of the assessment notices to property owners will begin on or around September 15th of this year. 2005 Farm Class Ratio This year, Regional Council approved a reduction in the "Farm" ratio. This ratio will be reduced from 0.25 (2004 Ratio) to 0.20 over a three-year phase-in period, with the 2005 ratio being 0.2333. Tax Due Date Installments Recommendation 3 provides for the due dates for the payment of residential taxes being July 15, 2005 and September 29, 2005. The table below lists the tax installment due dates for the last three years. The 1st installment due date in 2003 was delayed until August due to late receipt of information required to prepare the final billing. Year 1st Installment 2na Installment 2004 July 16/04 September 29/04 2003 August 15/03 September 26/03 2002 July 15/02 September 16/02 Revised Tax Bill Prior to 2001, the City had used an one page (legal sized) tax bill. In 2001, the Province through regulation mandated the format of the tax bills. One of their changes was the inclusion of schedules explaining the budgetary and assessment changes from the prior year. To accommodate the Provincial government changes, the City of Pickering in conjunction with the municipalities of Ajax and Whitby adopted a two page tax bill format. To accommodate the Provincial regulations, changes were required to the tax billing system and the programming cost was share among the three municipalities. This year, taxation staff from the three municipalities decided to improve the tax bill format and design and a revised tax bill is planned to be used for the 2005 final tax bills. With the re-design of the tax bill, it was decided to proceed with a joint tender Report CS 38-05 Date: Subject: 2005 Tax Rates and Final Tax Due Dates for All Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes June 10, 2005 Page 4 (Pickering, Ajax and Whitby) and with Ajax acting as the host municipality to obtain better pricing and to ensure that the printer selected could accommodate the proposed tax bill format changes. The revised tax bill is now one page (legal size) format. The one page legal size format provides the following advantages: · With the new bill format, the printer is now able to use a larger font size. · Some taxpayers lose or forget to bring the second page of the tax bill which contained the tax payment stubs. It is anticipated that the new one page format would reduce this problem. · With the one page bill format, the City is also able to save on printing costs due to the fact the printer was charging for every page. · It also appears that the City may also same on some postage costs when multiple tax bills are mailed in one envelope. Tax Rate Based On Best Estimate When the City received the assessment roll in December of last year, for 2005 tax billing, the negotiated settlement for the OPG property was not reflected in the returned roll. In February of this year, the City received from MPAC, a 2005 assessment estimate reflecting MPAC's interpretation of the negotiated settlement for the Pickering nuclear facility which was lower than previously agreed upon amount. However, this is still an estimate and subject to change. In addition, this year the Region of Durham continued its goal of reducing the large industrial tax ratio. The Region's long term goal is to eventually have the large industrial tax rate to be the same as the industrial tax rate. When the Region reduces its large industrial tax ratio, the Province has to issue a revised education tax rate. As of June 9th, the Province has not yet issued the revised tax rate. In order for the City to issue its residential tax bills on time, staff have to proceed with the billing process and without the final industrial education tax rates. However, the final non-residential tax billing report will include the education tax rates for the industrial tax class. 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 14, 2005. Report CS 38-05 Date: June 10, 2005 Subject: 2005 Tax Rates and Final Page 5 Tax Due Dates for All Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes Changes to the Billinq 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 2005 Tax Rates Realty Classes Except Non-Residential Final Installment Due Dates for All Prepared By: Approved ! Endorsed By: Stan Karwowski Manager, Finance & Taxation Gillis A. Paterson Director, Corporate Services & Treasurer GAP:vw Attachment Copy: Chief Administrative Officer Recommended for the consideration of THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO.6534/05 Being a by-law to adopt the estimates of all sums required to be raised by taxation for the year 2005 and to establish the Tax Rates necessary to raise such sums and establish the final due dates for the residential, pipeline, farmland and managed forest realty tax classes. 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 Picketing, pursuant to the Municipal Act, to levy on the whole rateable 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. 16-2005 to establish tax ratios and By-law 17-2005 to adopt estimates of all sums required by The Regional Municipality of Durham for the purposes of the Regional Corporation and By- law 15-2005 to set and levy rates of taxation for Regional Solid Waste Management and By-law No. 14-2005 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 2005 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 2005; and, WHEREAS an interim levy was made by the Council of The Corporation of the City of Pickering (pursuant to By-law No. 6451-05) 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 2005, The Corporation of the City of Pickering (the "City") on May 2, 2005, approved Council Report CS 30-05 and corresponding schedules and attachments as presented including the budgetary levy of $34,277,887 and assessment growth of $375,873 for a total tax levy of $34,653,760. For the year 2005, 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 le~/ provided fo~' in Schedule "A" shafl be reduced by the amount of the interim levy for 2005. The Tax Levy due dates for the Final Billing be July 15, 2005 and September 29, 2005 for all classes excluding the non-residential tax classes (commercial, industrial and multi-residential.) If any section or portion of this By-Paw or of Schedule "A" is found be' 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. This By-Paw comes into force on the date of its final passing. BY-LAW read a first, second and third time and finally passed this 20th day of June 2005. David Ryan, Mayor Debi Bentley, Clerk ProPerty Class 2005 CV..._&A City Tax Rate Residential 7,010,140,819 0.00367541 Farm 65,377,500 0.00085750 Managed Forest 4,011,000 0.00091890 Pipelines 22,878,000 0.00451850 Multi-Res dential 59,853,890 0.00762650 Commercial 582,510,611 0.00532930 Commercial - Excess Land 20,857,930 0.00373050 Commercial Vacant Land 9,373,000 0.00373050 Shopping Centres 261,007,390 0.00532930 Shopping Centres Excess Land 278,040 0.00373050 Office Building 19,570,920 0.00532930 Office Building Excess Land 0.00373050 Industrial 135,705,730 0.00830570 Industrial Excess Land 3,452,265 0.00539870 Industrial Vacant Land 27,038,290 0.00539870 Large Industrial 26,581,805 0.00953770 Large Industrial - Excess Land 643,195 0.00619950 Parking Lot Full 0.00532930 Parking Lots Excess Land 0~00373050 By-Law No,6534/05 Schedule A 2005 Tax Rates Region Education Tax Rate Tax Rate Total Tax Rate 0.00717001 0.00296000 0.01380542 0.00167277 0.00074000 0.00327027 0.00179250 0.00074000 0.00345140 0.00881481 0.01596771 0.02930102 0.01487777 0.00296000 0.02546427 0.01039651 0.01645136 0.03217717 0.00727756 0.01151595 0.02252401 0.00727756 0.01151595 0.02252401 0.01039651 0.01645136 0.03217717 0.00727756 0.01151595 0.02252401 0.01039651 0.01645136 0.03217717 0.00727756 0.01151595 0.02252401 0,01620279 ** 0,01053203 ** 0.01053203 ** 0.01860618 0.01209437 *' 0,01039651 0,01645136 0.03217717 0.00727756 0.01151595 0.02252401 Pickering Billinq Region Education TOTAL Billing 8illinq BILLING 25,765,161 50,262,780 56,061 109,362 3,686 7,190 103,374 201,665 456,476 890,492 3,104,374 6,056,077 77,811 151,795 34,966 68,213 1,390,987 2,713,566 1,037 2,023 104,299 203,469 1,127,13! 2,198,81t 18,638 36,359 145,972 284,768 253,529 494,586 3,987 7,779 20,750,017 96,777,957 48,379 213,802 2,968 13,844 365,309 670,349 177,168 1,524,136 9,583,092 18,743,543 240,199 469,804 107,939 211,118 4,293,927 8,398,479 3,202 6,263 321,968 629,737 Total . 8,249,280,385 Payments in Lieu Properties Residential 84,802,540 0.00367541 Residential - Tax Tenant 60,388,120 0.00367541 Residential - General 42,171,740 0.00367541 Farm 49,231,900 0.00085750 Farm - Tax Tenant 12,213,000 0.00085750 Commerc al Full 41,883,695 0.00532930 Commercal Full - Shared PIL 29,030,720 0.00532930 Commercial Full - Tax Tenant 2.488,640 0.00532930 Commercial General 9,273,990 0.00532930 Commercial Full - Excess Land 9,310,125 0.00373050 Commercial General Excess Land 447,500 0.00373050 Commercial Gan - Vacant Land 2,425,000 0.00373050 Commercial Vacant Land Fult 0,00373050 Office Building Full - Shared PIL 7,215,710 0.00532930 Parking Lot 0.00532930 Industrial Full 1,102,350 0.00830570 Industrial General 0.00830570 Industrial Full- Shared PIL 6,808,730 0~00830570 Industrial Full- Tax Tenant 112,830 0,00830570 Ind. Excess Land · Shared PIL 7,382,125 0.00539870 Ind, Excess La nd Tax Tenant PIL 133,170 0.00539870 Industrial Excess Land Gert 1,365,215 0.00539870 IndustrlalVacant Land Full 0.00539870 Industrial Vacant Land Gert 0.00539870 Industrial Vacant Land Shared PIL 2,265,500 0.00539870 Large Industrial Full - Shared PIL 63,667,330 0.00953770 Large Ind. Excess Land -Shared PIL 1,028,885 0.00619950 Total PILS 434,748,815 0.00717001 0.00296000 0.01380542 0~007!7001 0.00296000 0.01380542 000717001 0.00000000 0.01084542 0.00167277 0.00074000 0.00327027 0.00167277 0.00074000 0.00327027 0.01039851 0.01645136 0.03217717 0.01039651 0.01645136 0.03217717 0.01039651 0.01645136 0,03217717 0.01039651 0.00000000 0.01572581 0.00727756 0.01151595 0.02252401 0.00727756 0.00000000 0.01100806 0.00727756 0.00000000 0.01100806 0.00727756 0.01151595 0.02252401 0.01039651 0.01645136 0.03217717 0.01039651 0.01645136 0.03217717 0.01620279 ** 0.01620279 0.00000000 0.02450849 0,01620279 ** 0,01620279 ** 0.01053203 ** 0.01053203 ** 0.01053203 0.00000000 0.01593073 0.01053203 ** 0.01053203 0.00000000 0.01593073 0.01053203 ** 0.01860618 ** 0.01209437 ** 32.647,488 63,688,936 311,684 608,035 251,016 1,170,735 221,951 432,983 178,749 833,883 154.998 302,372 457,370 42,216 82,354 36,432 161,002 10,473 20,430 9,038 39,940 223,211 435,444 689,044 1,347,699 154,713 301,818 477,595 934,126 I3,263 25,873 40,942 80,077 49,424 96,417 !45,841 34,731 67,755 107.215 209.70! 1,669 3,257 4,926 9,046 17,648 26,695 38,455 75,018 118,708 232,181 9,156 17,861 56,551 1 10,320 937 !.828 ** 39,854 77,749 ** 719 1,403 ** 7,370 14,378 12,231 23,860 ** 607,240 1,1 84,606 ** 6,379 12,444 2,006,272 3,9 13,854 ** Final Education tax rates for Industrial and Large Industrial tax class not yet available from the Province. Grand Total 34,653,760 67,602.789 -II;(~ Assessme;lt figures ~or OPG are an estimate