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RFD- 3265 Bylaws   Item #   9. a.    
Regular Council Meeting Agenda
Meeting Date: 04/23/2018  
Title:    C-1038-18 - First and Second Reading - 2018 Property Tax and Supplementary Property Tax Bylaw - Goodwin
Department: Corporate Services  
Strategic Vision Element: This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan Related Goal: Spruce Grove has a robust, growing economic base that generates balanced revenues to support the City’s high standards for services and programs.

Request for Decision Summary
The purpose of this report is to seek Council's authorization of the 2018 rates of taxation.

Proposed Motion
That first reading be given to Bylaw C-1038-18 - 2018 Property Tax and Supplementary Property Tax Bylaw.

That second reading be given to Bylaw C-1038-18 - 2018 Property Tax and Supplementary Property Tax Bylaw.
The Municipal Government Act, R.S.A., 2000, c.M-26 authorizes a municipality to pass an annual property tax bylaw to impose a property tax sufficient to raise the revenue necessary to pay requisitions and expenditures and transfers set out in the approved budget. The 2018 rates include a 3.9% municipal tax increase, a split mill rate of 1.4284 and the education and seniors housing requisitions.

The annual property tax bylaw sets out the assessed property values by class and calculates the tax rates required to raise budgeted tax revenue in accordance with property tax policies. The amount of the tax revenue required and the property tax policies were established in the 2018 - 2020 Corporate Plan.

Education and Seniors Requisitions
The 2018 education requisition of $16,030,419 is .3% less than the estimate included in the approved corporate plan. It's $477,394 more than the prior year, a 3.07% increase (2017 - 10.7%; 2016 - 12.1%).

The 2018 seniors housing requisition of $275,481 is 20% higher than the estimate included in the approved corporate plan. It's $21,223 more than the prior year, a 8.35% increase (2017 - 12.64% 2016 - 12.96%).

Annexed Properties
Annexed lands must be taxed at Parkland County municipal tax rates until 2023 or until a portion becomes a new registered parcel of land as set out in the 2008 Lieutenant Governor in Council's Annexation Order. The Property Tax Bylaw refers to the Order for the annexation and stipulates that the rates for the annexed lands will be those established by the 2018 Parkland County Property Tax Bylaw.

Parkland County 2018 tax rates will be available for the rates to be presented in third reading and any subsequent adjustments will be made at that time.

Property Tax Policy
The City does not tax overall market value appreciation or depreciation; however, individual market value changes will be different for each property with different impacts to their tax levies.

For the twelve months ending June 30, 2017 non-residential properties experienced a increase in market value of .25%, multi-family decreased 5.65% and residential decreased 1.04%.

The 2018 bylaw includes a split mill rate of 1.4284 as per policy. The split mill rate is based on the prior year's Edmonton regional average or 25% of the total municipal tax requirement, whichever is higher. The 2017 Edmonton regional average split mill rate was 1.4284 while 25% of the total requirement results in a rate of 1.27%. The 2017 split mill rate was 1.5186.

Taxable Assessment Growth
The 2018 - 2020 Corporate Plan assumes that new development assessment on taxable properties would be $162 million. Actual new development was $210 million (assessment growth of 3.4%). Actual growth for both residential and non-residential is higher than anticipated in the corporate plan and multi family was lower. The 2018 ratio of residential assessment to non-residential assessment is 82/18 (2017 - 82/18).

Not applicable
As established by provincial legislation, the assessments have been prepared based on property sales between June 2016 and July 2017. Assessment notices were mailed on February 5, 2018. An Assessment Open House was held on March 14, 2018. The Assessors were available during the open house to discuss market value changes and Finance staff were available to discuss related concerns, the deadline to make a complaint on an assessment was April 6, 2018.
The City advertises the tax notice mailing through the Examiner, City website, social media and reader boards.

Tax notices must be mailed no later than May 24, 2018 and are due on or before June 30, 2018 (excluding those on the pre-authorized payment plan).
Not applicable

Fiscal Impact
Financial Implications:
The 2018 municipal tax requirement is $37,997,000 comprised of annual tax revenues of 37,681,000; estimated supplementary tax revenue of $187,000; and estimated annexed tax revenue of $129,000.
Property Tax Bylaw

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