HomeMy WebLinkAboutCS 16-04PICKERING
REPORT TO COUNCIL
Report Number: CS 16-04
Date: June 7, 2004
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
2004 Tax Rates for all Classes of Property Except Non- Residential 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 16-04 of the Director, Corporate Services &
Treasurer be received and that;
2. the 2004 Non-residential tax rates for the City of Pickering be approved as
contained in Schedule A to By-law No. 6341/04 attached hereto;
3. the tax levy due dates for the Final Billing be July 16, 2004 and September 29,
2004 excluding the industrial, multi-residential and commercial realty tax classes;
4. the attached By-law No. 6341/04, providing for the imposition of the non-
residential 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 and the attached
By-law provides for the approval of tax rates required to raise the levy approved in the
2004 Current Budget of the City of Pickering and to levy taxes for School Boards and
for the Region of Durham.
Report CS 16-04 Date: June 7, 2004
Subject: 2004 Tax Rates Except Non-Residential 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 2004 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 2004 final tax billing process will consist of two separate
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 June 1, 2004, City Council approved Report CS 14-04 of the Director, Corporate
Services & Treasurer that provided for a property tax levy of $32,490,889 resulting in
a budgetary increase of 8,9%, This increase is applied to the "City portion" of the
property tax bill.
Comparison of Pickerinq's Residential Total Tax Rate with our Eastern Neiqhbors
Pickering 284,000 0.01326167 3,766.31
W hitby 284,000 0.01369123 3,888.31 $122.00
As the above chart indicates, Pickering residents continue to enjoy having the lowest
tax rates and therefore, paying a lower property tax rate 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 total tax rates had to be used for
comparison purposes.
Report CS 16-04
Date:
Subject: 2004 Tax Rates Except Non-Residential and Final
Tax Due Dates for All Realty Tax Classes Except for
Commercial, Industrial & Multi-Residential Realty Classes
June 7,2004
Page 3
2004 Tax Rates & Property Taxes
The 2004 tax rates are based on the revised assessment data that reflects higher
assessment values due to the change in the valuation date from June 2001 to June
2003. As expected, property values have increased over the last two years which has
resulted in an increase in property assessment values. In other words, 2004 tax rates
have been calculated to reflect the increase in property assessment values. When re-
assessment occurs, many taxpayers are confused as to why their property tax bill
does not reflect the various budgetary changes as announced by the different levels of
Government. Table One provides a summary of the municipal tax changes by
basically eliminating the effects of property re-assessment. (Table One measures the
property tax bill change by using the 2003 tax bill as the basis for the calculation.)
Table One
Government Budgetary Percentage %
Level Increase On Tax Bill Total
City
Region
Sub Total
Est. Regional Waste
Change
Est. Regional Tax
Policy Changes
Total Increase
8.90 25.75 2.3
6.63 50.16 3.3
5.6
1.5
0.8
7.9
A residential property that has a property tax increase above 7.9% is mainly due to the
fact that their property's assessment value increase was above the municipal average
increase of 13.15 per cent. In other words, for those properties who had a residential
assessment increase below 13.15%, they will experience a smaller increase on their
property tax bill.
For the 2004 taxation year, the City of Pickering transferred responsibility and
corresponding costs for solid waste to the Region of Durham. This transfer resulted in
the Durham Region Waste Tax Rate increasing from 0.00034263 to 0.00049675 or
64.5%. The transfer has resulted on an average increase of approximately $55.00 on
the Regional portion of the property tax bill in addition to the Region's general
budgetary increase.
This year, Regional Council approved changes to the tax ratios such as lowering the
large industrial tax ratio which has shifted property tax responsibilities onto the
residential property tax payer.
Report CS 16-04 Date: June 7, 2004
Subject: 2004 Tax Rates Except Non-Residential and Final
Tax Due Dates for All Realty Tax Classes Except for
Commercial, Industrial & Multi-Residential Realty Classes
Page 4
Tax Rate Based On Best Estimate
The City of Pickering is able to retain the education portion of the property taxes of
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.
When the City received the assessment roll in December of last year, for 2004 tax
billing, the negotiated settlement for the OPG property was not reflected in the returned
roll. At the end of May, the City received from MPAC, a 2004 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 2004 tax rates.
Tax Due Date Installments
Recommendation 3 provides for the due dates for the payment of residential taxes
being July 16, 2004 and September 29, 2004. In the past, the first residential final
installment has traditionally been by the end of June. The last installment has always
been around the end of September. Last year, due to the late receipt of information,
the residential due dates were August 15, 2003 and September 26, 2003. In order to
meet the Provincial billing requirements of 21 days notice, the tax bills have to be in the
mail by June 24, 2004.
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
15, 2004.
Changes to the Billing 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
Report CS 16-04 Date:
Subject: 2004 Tax Rates Except Non-Residential and Final
Tax Due Dates for All Realty Tax Classes Except for
Commercial, Industrial & Multi-Residential Realty Classes
June 7, 2004
Page 5
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. (Sect/on 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 2004 Tax Rates Except Non-Residential
Installment Due Dates for All Realty Classes Except Non-Residential
& Final
Prepared By:
Stan Karwowski
Manager, Finance & Taxation
Approved / Endorsed By:
Director, Corporate Services & Treasurer
GAP:vw
Attachment
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Council
Thomas J. Quinn, Chief Administrative Officer
BY-LAW NO. 834i/04
Being a by-iaw to adopt the estimates of all sums required to be
raised by taxation for the year 2004 and to establish the Tax
Rates Except Non-Residential 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 properly 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 Picketing 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. 29-2004 to
establish tax ratios and By-law 27-2004 to adopt estimates of all sums required by The
Regional Municipality of Durham for the purposes of the Regional Corporation and By-
law 30-2004 to set and levy rates of taxation for Regional Solid Waste Management
and By-law No, 28-2004 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 2004 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 2004; and,
WHEREAS an interim levy was made by the Council of The Corporation of the City of
Pickering (pursuant to By-law No. 6257/04) 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 2004, The Corporation of the City of Pickering (the "City")'on June
1st, approved Council Report CS 14-04 and corresponding schedules and
attachments as presented including the budgetary levy of $32,336,812 and
assessment growth of $154,077 for a total tax levy of $32,490,889.
For the year 2004, 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 levy provided for in Schedule "A" shall be reduced by the amount of the
interim ~evy for 2004.
The Tax Levy due dates for the Final Billing be July I6, 2004 and September 29,
2004 for all classes excluding the non-residential tax classes (commercial,
industrial and multi-residential.)
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
:he ~::;ty of ;-:ici<erina i:na-i ail :emainina sections a '~: ~is s.F.c
Bchaduies ~'A" continue in :orca and effec":,
This By-iow comes into force on ~ne date of its i'inai passing.
BY-LAW read a first, second and third time and finally passed this 7th day of June
2004,
David Ryan, Mayor
Bruce Taylor, Clerk
By-Law No. 6341104
Schedule A
2004 Tax Rates
2004 City Region Education
CV_..AA Tax Rate Tax Rate Tax Rate
Property Class
Residential 6,924,776,696 0.00347988 0.00682179 0.00296000
Farm 66,843,070 0.00086997 0.00170545 0.00074000
Managed Forest 4,420,500 0.00086997 0.00170545 0.00074000
Pipelines 22,782,000 0.00427816 0.00838670 0.01596771
Total Picketing Region Education TOTAL
Tax Rate B IlinR Billin<~ B Itinn BILLING
0.01328167 24,097,392 47,239,372 20,497,339 91,834,103
0.00331542 58,151 t t 3,998 49,464 221,613
0.00331542 3,846 7,539 3,271 14,656
0.02863257 97,465 191,066 383,776 652,307
Total
Payments in Lieu Properties
7,018,822,266
Residential 88,954,340 0.00347988 0.00682179 0.00296000
Residential - Tax Tenant 64,856,320 0.00347988 0,00682179 0.002960D0
Residential- General 42,569,140 0.00347988 0,00682179
Farm 44,595,600 0.00086997 0.00170545 0.00074000
Farm- Tax Tenant 10,542,800 0.00086997 0.00170545 0.00074000
$ 24,256,854 $ 47,551,975 $ 20,9t3,850 $ 92,722,679
0,01326167 309,550 606,828 263,305 1,179,683
0.01326167 225,692 442,436 191,975 860,103
0.01030167 148,135 290,398 438,533
0.00331542 38,797 76,056 33,001 147,853
0.00331542 9,172 17,980 7,802 34,954
Total PILS 251,518,200
$ 731,347 $ 1,433,698 $ 496,082 $ 2,661,126
Total Assessment 7,270,340,466
Footnotes
Payments in lieu of taxes at the General Rate excludes the education tax rate component.
$ 24,988,201 $ 48,935,672 $ 21,409,932 $ 95,383,806
07/0c~2004 By Law Schedule 2004 Final Tax Billing Non Capped.xls