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RFD- 3500 Bylaws   Item #   9. e.    
Regular Council Meeting Agenda
Meeting Date: 04/23/2019  
Title:    C-1076-19 - First and Second Reading - 2019 Property Tax and Supplementary Property Tax Bylaw - Pungur-Buick
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.

Information
Request for Decision Summary
The purpose of this report is to seek Council's authorization of the 2019 rates of taxation.
Proposed Motion
That first reading be given to Bylaw C-1076-19 - 2019 Property Tax and Supplementary Property Tax Bylaw.

That second reading be given to Bylaw C-1076-19 - 2019 Property Tax and Supplementary Property Tax Bylaw.
Background/Analysis
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, expenditures and transfers as set out in the approved budget. The 2019 rates include a 3.5% municipal tax increase and a split rate of 1.4180.  

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 Distribution Policy are both established in the 2019 - 2021 Corporate Plan.

Education and Housing Foundation Requisitions
At the time this report was created, Alberta Education had not yet issued the 2019 requisition. Administration has estimated the 2019 education requisition by applying the 2018 Provincial Basic Rates to the City's 2019 equalized assessment. This estimation is $306,472 higher than the 2018 requisition; a 1.9% increase (2018 requisition had increased 3%).

The 2019 Housing Foundation requisition is $25,777 higher than the 2018 requisition; a 9.3% increase (2018 requisition had increased 8.35%).

Annexed Lands
Lands annexed from Parkland County must be taxed at the County's municipal tax rate 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 and stipulates that the rates will be those established by the 2019 Parkland County Property Tax Bylaw. The County rates will be available in time for third reading.

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, 2018, non-residential properties experienced an increase in market value of 0.5%, multi-family decreased 2.89% and residential decreased 1.69%.

The 2019 bylaw includes a split rate of 1.4180 as per policy. The split is based on the prior year's regional average or 25% of the total requirement, whichever is higher. The 2018 regional average was 1.4180 while 25% of the requirement would be a split rate of 1.26. The 2018 split rate was 1.4284.

Taxable Assessment Growth
The 2019  - 2021 Corporate Plan assumes that new development assessment on taxable properties would be $143 million. Actual new development was $153 million (assessment growth of 2.6%). Actual growth for both residential and multi-family is higher than anticipated in the Corporate Plan and non-residential was lower. The 2019 ratio of residential assessment to non-residential assessment remains unchanged since 2017 at 82/18.
Options/Alternatives
Not applicable
Consultation/Engagement
As established by provincial legislation, the assessments have been prepared based on property sales between June 2017 and July 2018. Assessment notices were mailed on February 6th and an Open House was well attended on March 13th where the Assessors were available to discuss current assessments, comparables and related concerns. The deadline for assessment complaints is April 16th. 
Implementation/Communication
The City advertises the tax notice mailing through the Examiner, City website, social media and the reader boards. Tax notices must be mailed no later than May 24th and are due on June 30 (excluding those on pre-authorized payment plan).
Impacts
Not applicable

Fiscal Impact
Financial Implications:
The 2019 municipal tax requirement is $40,448,000 comprised of annual tax revenue of $40,093,117, estimated supplementary tax revenue of $187,000 and estimated annexed lands revenue of $167,883.
Attachments
C-1076-19 2019 Property Tax Bylaw

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