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HomeMy WebLinkAboutCST 13-12 Report To Executive Committee, PICKERING Report Number: CST 13-12 Date: May 14, 2012 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2012 Tax Rates and Final Tax Due Dates for All Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes Recommendation: 1. That Report CST 13-12 of the Director, Corporate Services & Treasurer regarding the 2012 tax rates be received; 2. That the 2012 tax rates for the City of Pickering be approved as contained in Schedule A of the By-law attached hereto; 3. That the tax levy due dates for the Final Billing be June 27, 2012 and September 27, 2012 excluding the industrial, multi-residential and commercial realty tax classes; 4. That the attached By-law providing for the imposition of the tax rates approved under Recommendation 2 and 3 above, be read three times and approved; 5. 'That the Director, Corporate Services & Treasurer be authorized to make any changes or undertake any actions necessary to comply with Provincial regulations including altering due dates or final tax rates to ensure that the property tax billing process is completed; and, 6. That 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 2012 Current Budget of the City of Pickering and to levy taxes for School Boards and for the Region of Durham. This is for all realty tax classes except for commercial, industrial and multi-residential which will be dealt with later this year. Report CST 13-12 Date: May 14, 2012 152 Subject: 2012 Tax Rates and Final Tax Due Dates for All Page 2 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 2012 levy for all properties except for the industrial, commercial and multi-residential tax classes which will be dealt with later this year. Passing of the by-law will assist the City of Pickering to meet its financial obligations and reduce any borrowing costs. This levy also raises taxes for the Region of Durham and the School Boards. Discussion: The 2012 final tax billing process will consist of two separate components: 1. Residential and residential related (farm, managed forest) properties; and, 2. 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 next few months. City's Net Tax Levy and Tax Rate Increase The 2012 budget provided for an average property tax increase of 2.93% was adopted by Council through Corporate Services Report CST 03-12. The 2012 Council approved budget levy of $47,274,470 plus assessment growth of $463,000 translates into the total property tax levy of $47,737,470. Tax Due Date Instalments Recommendation 3 provides for the due dates for the payment of residential taxes being June 27, 2012 and September 27, 2012. The table below lists the tax instalment due dates for the last three years. Year 1S Instalment 2" Instalment 2012 June 27, 2012 September 27, 2012 2011 June 29, 2011 September 29, 2011 2010 June 28, 2010 September 28, 2010 2009 June 26, 2009 September 28, 2009 Communication Strategy In addition to mailing the tax bills, the City will advertise the tax installment due dates on the City's webpage and in the Pickering News Advertiser prior to each tax due date. Report CST 13-12 Date: May 14, 2012 153 Subject: 2012 Tax Rates and Final Tax Due Dates for All Page 3 Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes Pre-Authorized Payment Plans (PAP) The City offers three Pre-Authorized Payment Plans (PAP): regular monthly (for current accounts), installment based, and the monthly defined arrears plan (implemented November 2011). 1. Regular Plan This plan has 7,610 participants and consists of eleven payments on the 1St day of each month, starting in January with the last payment withdrawn in November. (There is no payment required in December which participants appreciate. 2. Installment Plan This plan has 287 participants and is based on the property tax due dates. This plan is popular with the "snow birds." 3. Monthly Arrears Plan Staff developed this payment option initiative to assist those taxpayers who are in arrears. This plan was introduced in November of last year and we currently have 80 participants. Preliminary estimates indicate that this plan will collect approximately $620,000 in outstanding property taxes and late fees. 4. PAP Promotional Initiative & Operational Efficiencies When the 2012 interim property tax bills were mailed earlier this year, every bill included the standard property tax brochure and a PAP application form. As a result of this PAP promotional initiative, PAP enrollment increased by 10.2% the largest such increase in the last few years. 5. Efficiencies The PAP payment program creates the following efficiencies: • Reduce counter activity • Reduce processing errors • Reduce costs of 3rd party processing (Symcor-RBC) • No additional staff resources required after initial set-up The staffing level for the Taxation Section has remained unchanged since 2002. However, property tax activity has increased by approximately 85% during this time and the extra workload has been absorbed by using operational efficiencies such as the PAP program. The promotion of this program will continue with each annual interim tax billing. Report CST 13-12 Date: May 14, 201 .154 Subject: 2012 Tax Rates and Final Tax Due Dates for All Page 4 Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes Other Recommendations 2 and 3 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 that have not yet been determined. Therefore, staff will bring a separate report to Council for the non- residential billing in June. Staff's preliminary estimate for the final non-residential due date is October 12, 2012. Changes to the Billing Schedule Recommendation 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 6 would be used only if required to meet Provincial legislation requirements. Section 343, subsection one of the Municipal Act states the property owner must have at least twenty-one days notice to pay their taxes. A report would be prepared to Council if there was a substantial change in the billing of the final taxes. Attachments: 1. By-law to Establish the 2012 Tax Rates and Final Instalment Due Dates for All Realty Classes Except Non-Residential Prepared By: Approved / Endorsed By: ck~, /_~_2 I - r asr~ Donna DeLong Gillis A. Paterson, CMA Supervisor, Taxation Director, Corporate Services & Treasurer Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council 2- Zo/ Tony Prevedel, P. Eng. Chief Administrative Officer ATTACHMENT#_~_TO REPORT# 3-t,~, The Corporation of the City of Pickering By-law No. - - Being a by-law.to adopt the estimates of all sums required to be raised by taxation for the year 2012 and to establish the Tax Rates necessary to raise such sums and establish the final due dates for the residential, pipeline, farm 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. 0. 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 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. 07-2012 to establish tax ratios and By-law 09-2012 to adopt estimates of all sums required by The Regional Municipality of Durham for the Durham Region Transit Commission and By- law 08-2012 to set and levy rates of taxation for Regional Solid Waste Management and By-law No. 10-2012 to set and levy rates of taxation for Regional General Purposes and set tax rates on Area Municipalities; and, Whereas the Province of Ontario has provided the 2012 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 2012; and, Whereas an interim levy was made by the Council of The Corporation of the City of Pickering (pursuant to By-law No. 7186/12 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 2012, The Corporation of the City of Pickering (the "City") on February 21, 2012, approved Council Report CST 03-12 and corresponding schedules and attachments as presented resulting in a taxation levy of $47,274,470. By-law No. Page 2 1 56 2. For the year 2012, 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. 3. The levy provided for in Schedule "A" shall be reduced by the amount of the interim levy for 2012. 4. The Tax Levy due dates for the Final Billing be June 27, 2012 and September 27, 2012 for all classes excluding the non-residential tax classes (commercial, industrial and multi-residential). 5. 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. 6. 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 22nd day of May 2012. David Ryan, Mayor Debbie Shields, Clerk 157 . 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