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Home My WebLink AboutFIN 11-14 C,fy o¢ A Report to Executive Committee PICKERING Report Number: FIN 11-14 Date: May 12, 2014 • From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: 2014 Tax Rates and Final Tax Due Dates for All Realty Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes Recommendation: 1. That Report FIN 11-14 of the Director, Corporate Services & City Solicitor regarding the 2014 tax rates be received; 9 9 2. That the 2014 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 26, 2014 and September 26, 2014 excluding the industrial, multi-residential and commercial realty tax classes; 4. That for the year 2014, the City shall levy upon designated Universities and Colleges an annual tax at the prescribed amount for each full-time student enrolled in the university or college, as determined by the Minister of Training, Colleges and Universities, payable on or after July , 5. That the attached By-law be approved; 6. That the Division Head, Finance & 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, 7. 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 2014 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. 101 Report FIN 11-14 May 12, 2014 Subject: 2014 Tax Rates and Final Tax Due Dates for All Realty Page 2 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 Finance Division to bill the Final 2014 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 2014 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 City's 2014 budget provided for an average property tax increase of 3.75% and was adopted by Council through Corporate Services Report FIN 5-14. The 2014 Council approved budget levy of$52,172,413 plus assessment growth of $1,146,000 translates into the total property tax levy of $53,318,413. The Region's tax increase for Pickering . was 1.5% and the School Board increase is zero, resulting in a total average residential increase of approximately 1.88%. Tax Due Date Instalments Recommendation 3 provides for the due dates for the payment of residential taxes being June 26, 2014 and September 26, 2014. The table below lists the tax instalment due dates for the last three years. Year 1st Instalment 2nd Instalment 2014 June 26, 2014 September 26, 2014 2013 June 27, 2013 September 27, 2013 2012 June 27, 2012 September 27, 2012 2011 June 29, 2011 September 29, 2011 102 Report FIN 11-14 May 12, 2014 Subject: 2014 Tax Rates and Final Tax Due Dates for All Realty Page 3 Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes Communication Strategy In addition to mailing the tax bills, the City will advertise the tax instalment due dates on - the City's webpage and in the Pickering News Advertiser prior to each tax due date. 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 have not yet been determined. Therefore, staff will bring a separate report to Council for the non- residential billing in May or June. Staffs preliminary estimate for the final non- residential due date is September 26, 2014. Recommendation 4 provides for the levying of an annual tax for institutions designated under section 323 of the Municipal Act. In the fall of 2013, the Ministry of Training, • Colleges & Universities (MTCU) implemented a new enrolment system for colleges, which resulted in Durham College of Applied Arts and Technology (CAAT) being reported under the City of Pickering. Each year the Ministry of Municipal Affairs and Housing (MMAH) provides a listing of institutions and their respective capacity figures as of December 31st of the prior year. The Minister of Training, Colleges and Universities prescribes the amount to be levied for each full-time student enrolled in the college. The institution is billed directly, and levies are payable on or after July 1st each year. It is estimated that the gross billing under recommendation 4 is approximately $9,750. Changes to the Billing Schedule Recommendation 5 will allow the Division Head, Finance & Treasurer some latitude, limited by Provincial legislation, in effecting whatever changes may be necessary in order to ensure that the taxes are billed properly and in a timely fashion. Recommendation 5 will be used only if required to meet Provincial legislative requirements, such as the requirements in subsection 343(1) of the Municipal Act that property owners must have at least twenty-one days notice to pay their taxes. A further report to Council will be prepared if there is any substantial change proposed to the • billing of the final taxes. Attachments: 1. By-law to Establish the 2014 Tax Rates and Final Instalment Due Dates for All Realty Classes Except Non-Residential 103 Report FIN 11-14 May 12, 2014 Subject: 2014 Tax Rates and Final Tax Due Dates for All Realty Page 4 Tax Classes Except for Commercial, Industrial & Multi-Residential Realty Classes Prepared By: Approved/Endorsed By: baa Wj Donna DeLong / Stan Karwowski • Supervisor, Taxation Division Head Finance & Treasurer • Paul Bigioni Director, Corpora - - ices & City Solicitor DD:vw Recommended for the consideration of Pickering City Council caejeg 22, 2,0(4- Tony Prevedel, P.Eng. Chief Administrative Officer 104 • ATTACHMENT# I TO REPORT#F L 11-'4 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 2014 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.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 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. 13-2014 to establish tax ratios, and By-law 15-2014 to adopt estimates of all sums required by The Regional Municipality of Durham for the Durham Region Transit Commission, and By- law 16-2014 to set and levy rates of taxation for Regional Solid Waste Management, and By-law No. 14-2014 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 2014 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 2014; and, Whereas an interim levy was made by the Council of The Corporation of the City of Pickering (pursuant to By-law No. 7331/14 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 2014, The Corporation of the City of Pickering (the "City") on February 24, 2014, approved Council Report FIN 05-14 and corresponding schedules and attachments as presented, resulting in a taxation levy of $53,318,413. 105 By-law No. Page 2 2. For the year 2014, 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 2014. 4. The Tax Levy due dates for the Final Billing be June 26, 2014 and September 26, 2014 for all classes excluding the non-residential tax classes (commercial, industrial and multi-residential). 5. For the year 2014, the City shall levy upon designated Universities and Colleges an annual tax at the prescribed amount for each full-time student enrolled in the university or college, as determined by the Minister of.Training, Colleges, and Universities, payable on or after July 1st in accordance with section 343 of the Municipal Act. 6. 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. 7. This By-law comes into force on the date of its final passing. • By-law passed this 20th day of May 2014. David Ryan, Mayor • Debbie Shields, City Clerk • • • • 106