HomeMy WebLinkAboutFIN 20-17c/v
PICKERING
Report to
Executive Committee
Report Number: FIN 20-17
Date: November 6, 2017
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Analysis of the 2017 Property Tax Grant for Low Income Seniors and Low
Income Persons with Disabilities
Recommendation:
It is recommended that Report FIN 20-17 of the Director, Finance & Treasurer regarding
the 2017 Property Tax Grant for Low Income Seniors and Low Income Persons with
Disabilities be received for information.
Executive Summary: This report on the 2017 Property Tax Grant for Low Income
Seniors and Persons with Disabilities provides an analysis of the program's first year.
This program provides a $200 grant for low income seniors who are in receipt of
Guaranteed Income Supplement (GIS) or for persons who are disabled and receiving
financial assistance from Ontario Disability Support Plan (ODSP).
Financial Implications: None
Discussion: On April 11, 2017 Council passed by-law 7552/17 to assist low income
seniors and persons with disabilities by developing the Low Income Property Tax Grant.
Pickering tax staff developed and administered a program to track and issue the grant
to eligible applicants.
Promotional/Communication Strategy
This was the program's first year and staff recognized the importance of the promotional
strategy as it relates to the program's success. A special emphasis and effort were
required in order to inform and reach as many Pickering senior and ODSP residents as
possible.
Report FIN 20-17 November 6, 2017
Subject: Analysis of the 2017 Property Tax Grant for Low Income Seniors Page 2
and Low Income Persons with Disabilities
Taxation staff employed the following strategies:
1) The program details were included in the 2017 final property tax brochure. This
brochure is distributed to all Pickering property owners.
2) The City's website was updated to reflect the program's details and also included an
electronic version of the application form.
3) In the Community Page section of the Pickering News Advertiser, an ad was placed
for six weeks.
4) The Pickering News Advertiser posted a story about the grant when Council passed
the By-law.
Program Statistics Based on Senior Grants
The City received 179 applications. 148 were approved and 31 were denied.
Applications were denied if the applicant was not receiving the GIS or ODSP financial
support. As expected, most of the successful applicants were seniors. 143 of the 148
(96.6%) approved applications were for seniors and five were ODSP recipients.
The breakdown by approved applicants is presented below:
• 50% of the applicants were women
• 25.6% were men
• 24.4% were married
The average life expectancy for women (83.8 years) is greater than men (79.6 years)
and this is reflected in the program's users.
Chart One
Grant Age Demographics
14.01%.
32.16%
23.77%
Age 65-69 Age 70-74
a Age 75-79 Age 80+
Report FIN 20-17 November 6, 2017
Subject: Analysis of the 2017 Property Tax Grant for Low Income Seniors Page 3
and Low Income Persons with Disabilities
As the above chart indicates, over 62.2% of the successful grant applicants were over
the age of 75. With a majority of Canadians retiring between the ages of 62 to 65, the
inference may be drawn from the above data that some level of financial stress may be
experienced by seniors after ten years of retirement. With inflation averaging around 2
per cent per year, the compound affect of the inflationary increase over ten years is
21.89%. In other words, the buying power of those seniors who retired ten years ago
has been eroded by at least 21.89% unless their pensions are indexed to some level of
inflation.
A breakdown by ward of successful grant applicants is presented in chart two.
Chart Two
Breakdown by Ward
Successful Applicants
80
70 -
60
50
40
30
20 -
10 -
0
Ward 1
Ward 2 Ward 3
Almost 46% of the applicants reside in ward 3. This anomaly could be due to the fact
that the "population data set" of 148 successful applicants is not large enough. In other
words, a larger population of successful applicants may not have produced such a
variance by ward.
An interesting statistic is the average assessment value by ward as presented below:
• Ward 1 - $532,024 — Range: $274,000 to $710,000
• Ward 2 - $446,718 — Range: $244,000 to $703,000
• Ward 3 - $362,1132 — Range: $198,000 to $724,000
Report FIN 20-17 November 6, 2017
Subject: Analysis of the 2017 Property Tax Grant for Low Income Seniors Page 4
and Low income Persons with Disabilities
The average assessment value is based on MPAC data and reflects the value of a
"home" as of January 1, 2016. In other words, the assessment values are almost two
years old and do not reflect today's real estate values. A partial explanation for the
variance in the assessment value may be due to the fact that the population data set for
ward 3 is based on 68 applications in contrast to the 41 applications received from ward
1. A larger number of successful applications generates a more reflective average
assessment value.
A breakdown of housing structure by successful applicant is shown in chart three.
Chart Three
Housing Structure
Detached Townhouse Semi -Detached Condo
A large majority of the successful applicants occup single detached homes which bear a
higher proper tax responsibility than other housing types. The 2017 grant strategy
based on $200, was to "hold the line" on City share property taxes when comparing
2014 to 2017. The average City Share of property taxes for the eligible applicants was
$1,131 in 2014 and for 2017 was $1,283 - a difference of $152. In other words, the
City has achieved its goal of freezing the City Share property taxes at the 2014
level. For 2018, staffs preliminary recommendation will be to increase the grant to
$225 to ensure that the City Share of property taxes remains at the 2014 level. Since
residents are required to apply and provide proof of eligibility every year, an application
form will be mailed to the successful 2017 applicants. Taxation staff will employ the
same communication and marketing strategy for 2018.
Report FIN 20-17 November 6, 2017
Subject: Analysis of the 2017 Property Tax Grant for Low Income Seniors Page 5
and Low Income Persons with Disabilities
Attachments: None
Prepared By: Approved I Endorsed By:
Mi Jones
Supervisor, Taxation
Stan Karwowski
Director, Finance & Treasurer
Recoil"
of Pick
ded for the consideration
City Council
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Tony Prev.-:-I, •. Eng.
Chief Admistrative Officer