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