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HomeMy WebLinkAboutCS 30-03 Citq o~ REPORT TO FINANCE & OPERATIONS COMMITTEE Report Number: CS 30-03 Date: June 18, 2003 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2003 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: 1. It is recommended that Report CS 30-03 of the Director, Corporate Services & Treasurer be received and that; 2. the 2003 tax rates for the City of Pickering be approved as contained in Schedule A to By-law No. 6160/03 attached hereto; 3. the tax levy due dates for the Final Billing be August 15, 2003 and September 26, 2003 excluding the industrial, multi-residential and commercial realty tax classes; 4. the attached By-law No. 6160/03, providing for the imposition of the tax rates approved under Recommendation 1 above, be read three times and approved; 5. 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; 6. the Director, Corporate Services & Treasurer be authorized to make any changes to the final tax rates to comply with Provincial regulations; and, 7. the appropriate City of Pickering officials be authorized to take the necessary actions to give effect thereto. Executive Summary: Adoption of the above recommendations a nd t he attached By-law provides for the levying of tax rates required to raise the levy approved in the 2003 Current Budget of the City of Pickering and to levy tax rates for education and for the Region of Durham. Report CS 30-03 Date: June 18, 2003 Subject: 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 Page 2 Financial Implications: Adoption of the recommendations and passing the by-law will allow staff of the Corporate Services Department to bill the Final 2003 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: components: The 2003 final tax billing process will consist of two separate 1. 2. 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 March 24, 2003, City Council approved Report CS 05-03 of the Director, Corporate Services & Treasurer that provided for a levy of $29,694,042 resulting in a budgetary increase of 4.9% and an overall increase of 6.8%. This increase is applied to the "City portion" of the property tax bill. 2003 Tax Rates & Property Taxes The 2003 tax rates are based on the revised assessment data that reflects higher assessment values due to the change in valuation from June 1999 to June 2001. Table one below, provides a comparison of the property taxes to be levied on a typical mid-price range single detached residential property assessed at $224,000 for 2002 and $251,000 for 2003. The median increase in residential assessment due to the change in valuations from June 1999 to June 2001 was 12.05%. A residential property that has an increase of less than 12.05% in current value assessment will experience a smaller increase than that shown below as a result of the re-assessment. Report CS 30-03 Date: June 18, 2003 Subject: 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 Page 3 Table One 2002 & 2003 Residential Property Taxes 2002 2003 INCR INCR. $224,000 $251,000 $ % ASSESSMENT ASSESSMENT City $841.25 $898.45 $57.20 6.8 Region 1,637.21 1,750.35 113.14 6.9 Education 835.52 840.85 5.33 0.6 Total $3,313.98 $3,489.65 $175.67 5.3 Overall, the combined 2003 residential taxes for City of Pickering residents will increase by $175.67 or 5.3% for a household assessed at $251,000. (The residential education rate is established by the Province). Tax Rate Based On Best Estimate The City of Pickering is able tor etain the education portion 0 f t he property taxes 0 f non-residential Payment-in-lieu (PIL) property. The City's largest PIL property is the Ontario Power Generation (OPG) nuclear facility. As Members of Council are aware, the assessment appeal (for the years 1999 to 2002) between the City and OPG has almost reached a successful conclusion. During the last few months, MPAC staff have been working on the revised Minutes of Settlement for the years 1999 to 2002 and are at the stage where Draft Minutes of Settlement have been prepared. When the City received the assessment roll in December of last year, for 2003 tax billing, the negotiated settlement for the OPG property was not reflected in the returned roll. On June 13, 2003, the City received from MPAC, a 2003 assessment estimate reflecting the principles of the negotiated settlement for the Pickering nuclear facility. However, this is still an estimate and subject to change. In addition, the industrial assessment for the City and the OPG facility is based on MPAC's new Automated Cost System or ACS. Concerns have been rasied by industry experts regarding the valuations produced by ACS. At this current time, staff are using the best information available to calculate the 2003 tax rates. Tax Due Date Installments Recommendation 3 provides for the due dates for the payment of residential taxes being August 15, 2003 and September 26, 2003. Last year the residential due dates were July 15, 2002 and September 16, 2002. In order to meeting the Provincial billing requirements of 21 days notice, the tax bills have to be in the mail by July 25th. Report CS 30-03 Date: June 18, 2003 Subject: 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 Page 4 Other Recommendations 1 and 2 provide for the levying of all tax rates on all classes of property even though the non residential properties 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 tax billing of non-residential realty classes hopefully for Council's summer meeting. Staff's preliminary estimate for the final non-residential due date is October 29, 2003. Chanaes to the Billina 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 2003 Tax Rates & Final Installment Due Dates Prepared By: Approved 1 Endorsed By: /,¿' ~- Stan Karwowski Manager, Finance & Taxation .~ ~ .J.¿ ----... - Glílis A. Paterson Director, Corporate Services & Treasurer GAP:vw Attachment Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council .,r ATTACHMENT#-L..ro REPORT#~30-o3 THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. 6160/03 Being a by-law to adopt the estimates of all sums required to be raised by taxation for the year 2003 and to establish the Tax Rates necessary to raise such sums. 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 ratable 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. 21-2003 to establish tax ratios and By-Law 20-2003 to adopt estimates of all sums required by The Regional Municipality of Durham for the purposes of the Regional Corporation and By- Law 34-2003 to set and levy rates of taxation for Regional Solid Waste Management and By-law No. 22-2003 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 2003 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 2003; and, WHEREAS an interim levy was made by the Council of The Corporation of the City of Pickering (pursuant to By-law No. 6097/03) 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 2003, The Corporation of the City of Pickering (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. 2. The levy provided for in Schedule "A" shall be reduced by the amount of the interim levy for 2003. 3. The Tax Levy due dates for the Final Billing be August 15, 2003 and September 26, 2003 for all classes excluding the non-residential tax classes. 4. 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. 5. 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 23rd day of June 2003. Wayne Arthurs, Mayor Bruce Taylor, Clerk By-Law No. 6160/03 Schadula A 2003 Tax Rat.. 2003 City Region Education Total Pickeril19 Region Education TOTAL CVA Tax Rate Tax Rate Tax Rate Tax Rate §!lling §!lling §!lling BilLING Property Class Reslden"" 6.033.290.345 0.00357950 0,00697352 0.00335000 0.01390302 21.59£.163 42.073.271 20.211.523 83.860.956 Falm 56.676.359 0,00089488 0,00174338 0.00083750 0,00347576 50,719 96,606 47.466 196.993 Managed Forest 2,184,990 0,00089488 0.00174338 0.00083750 0.00347576 1,955 3,609 1.630 7,595 Mu",.ReSidential 53,440,330 0,00810005 0,01578038 0,00335000 0.02723043 432,869 643,309 179,025 '1,455,203 CommefCial 481,864,415 0.00530446 0.01033406 0,01770647 0.03334499 2,556,031 4,979,616 8,532,116 16,067.764 Comm€fcial.Genaral 0.00530446 0,01033406 XXXXXXX 0.01563852 Commercial. Excess Land 9,141,545 0.00371312 0.00723363 0.01239453 0,02334128 33,944 66,127 113,305 213,375 Commercial Vacant Land 10,247,000 0.00371312 0,00723363 0,01239453 0.02334128 38,048 74,123 127,007 239,176 Shopping Centres 251,547,145 0.00476074 0,00927478 0.01589150 0,02992702 1,197.551 2,333,044 3,997.461 7,528.056 Shopping Centres Excess Land 242,000 0.00333251 0.00649235 0.01112405 0.02094891 806 1,571 2.692 5,070 Office Building 17,488,000 0.00530446 0,01033406 0,01770647 0.03334499 92.764 180,722 309,651 583.137 Office Building Excess Land 0.00371312 0.00723363 0,01239453 0.02334128 Industrial 119,814,485 0,00808895 0.01575877 0,02193986 0.04578758 969,173 1,888,129 2,626.713 5.466,015 Industrial Excess Land 2,BI1,760 0.00525782 0.01024340 0.01426091 0.02978213 14,784 28,602 40,098 63.684 Industrial Vacant Land 27,928,000 0.00525782 0.01024340 0.01426091 0.02976213 146,840 286,078 396,279 831.197 large Industrial 29,684,870 0,01005303 0.01958513 0.02726705 0.05890521 296.423 581,382 609.419 1,689.224 Large Industrial. Excess land 594,930 0.00653447 0.01273016 0.01772359 0.03698822 3,666 7,574 10,544 22,005 Parking Lot Full 0.00530446 0.01033406 0.01770647 0,03334499 Parking Lots Excess Land 0.00371312 0,00723363 0.01239453 0.02334128 Pipelines 21,631,000 0.00440064 0,00857325 0.01625565 0.02922954 95,190 165.446 351,626 632,264 Total 711B5B7174 $ 27.529,148 $ 53,631.812 $ 37,760,757 $ 118.921,718 Pavments In Lieu Prooerties Residential 120,386,150 0,00357950 0,00697352 0.00336000 0.01390302 430,922 839,515 403.294 1,673,731 Residential. Tax. Tenant 64,684,645 0.00357950 0,00697352 0.00335000 0.01390302 231,539 451,080 216,694 899.312 Residential. Gen 36,904,905 0.00357950 0.00697352 XXXXXXXX 0.01055302 132,101 257,357 369.456 Farm 0.00089488 0,00174338 0.00083750 0.00347576 Managed Forest 0.00089488 0,00174338 0.00083750 0.00347576 Multi Res 0.00810005 0,01578038 0,00335000 0.02723043 Commercial Full 40,194,345 0.00530446 0.01033406 0.01770647 0,03334499 213,209 415,371 711.700 1,340,280 Commercial Full. Shared PIL 20,094,605 0.00530446 0.01033406 0.01770647 0,03334499 106,591 207.659 355,805 670,054 Commercial Full. Tax. Tenant 2,005,380 0.00530446 0,01033406 0,01770647 0,03334499 10,637 20,724 35.508 66.869 Commercial Gen 7,854,645 0.00530446 0,01033406 XXXXXXXX 0.01563852 41,665 81,170 122.835 Commercial Full- Excess Land 8.424,855 0.00371312 0,00723363 0,01239453 0,02334128 31,282 60,942 104.422 196,647 Commercial Gen, Excess Land 251,420 0.00371312 0.00723363 XXXXXXXX 0,01094675 934 1,819 2,752 Commercial Gen - Vacant Land 2.162,000 0.00371312 0,00723363 XXXXXXXX 0.01094675 8,028 15.639 23.667 Commercial Vacant land Full 0.00371312 0.00723363 0.01239453 0,02334128 Office Buildil19 Full. Shared PIL 4,711,635 0.00530446 0.01033406 0.01770647 0,03334499 24,993 48,690 83,426 157,109 Office Building Gen 0,00530446 0.01033406 XXXXXXXX 0.01563852 Office 6uildin9 Excess Land Full 0.00371312 0.00723363 0,01239453 0.02334128 Office Building Excess land Gen 0.00371312 0.00723363 XXXXXXXX 0.01094675 Parking Lot Full 75,000 0,00530446 0,01033406 0,01770647 0.03334499 398 775 1,328 2,501 Industrial Full 961,685 0,00808895 0,01575877 0,02193986 0,04578758 7,779 15,155 21,099 44,033 Industnal Gen 0.00808895 0.01575877 XXXXXXXX 0.02384772 Industrial Full- Shared PIL 14,581,080 0,00808895 0.01575877 0,02193986 0.04578758 117.946 229,780 319,907 667,632 Industrial Full- Tax Tenant 148,595 0,00808895 0.01575877 0.02193986 0.04578758 1,202 2,342 3,260 6,804 Ind. Exc... Land. Shara<! PIL 7,847,190 0,00525782 0.01024340 0.01426091 0.02976213 41,259 80,382 111.908 233,549 Industrial Excess Land Gen 0,00525782 0,01024340 XXXXXXXX 0.01550122 Industnal Vacant Land Full 1,956,905 0.00525782 0.01024340 0.01426091 0.02976213 10,289 20,045 27,907 58,242 Industrial Vacant Land Gen 829,500 0,00525782 0.01024340 XXXXXXXX 0.01550122 4,361 8,497 12,858 Large Industrial Full. Shared PIL 74,159,325 0.01005303 0,01958513 0.02726705 0.05690521 745,526 1,452.420 2,022,106 4,220,052 Large Industrial Gen 0.01005303 0.01958513 XXXXXXXX 0.02963816 Large Ind Excess Land. Shared Pil 649,335 0.00653447 0.01273016 0.01772359 0,03698822 4,243 8,266 11,509 24,016 Total PllS 408,883,200 $ 2,164.904 $ 4,217,628 $ 4.429,873 $ 10,812.404 Exempt 251,638,844 Total Assessment 7,779,309,218 $ 29,694,042 $ 57,849.440 ~ $ 129.734.122 ~ Payments in lieu of taxes at the General Rate excludes the education tax rate component.