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RFD- 2959 Bylaws   Item #   10. f.    
Regular Council Meeting Agenda
Meeting Date: 05/08/2017  
Title:    C-992-17 - Third Reading - 2017 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.

Information
Request for Decision Summary
The purpose of this report is to seek Council's authorization of the 2017 rates of taxation.
Proposed Motion
That third reading be given to Bylaw C-992-17 - 2017 Property Tax and Supplementary Property Tax Bylaw, as amended.
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 and expenditures and transfers set out in the approved budget. The 2017 rates include a 2.9% municipal tax increase, a split mill rate of 1.5186 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 2017 - 2019 Corporate Plan.

Education and Seniors Requisitions
The 2017 education requisition of $15,553,026 is 3.61% higher than the estimate included in the approved corporate plan. It is $1,500,740 more than the prior year, a 10.7% increase (2016 - 12.1%; 2015 - 9%).

The 2017 seniors housing requisition of $254,258 is 10.8% higher than the estimate included in the approved corporate plan. It is $28,549 more than the prior year, a 12.64% increase (2016 - 12.96%; 2015 14%).

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 2017 Parkland County Property Tax Bylaw.

Parkland County 2017 tax rates were approved on April 25 and the actual revenue to be raised from annexed lands taxes has been incorporated into the City's rates as shown on the amended bylaw. The result of this recalculation on properties taxed at Spruce Grove rates is a levy reduction of approximately 12 cents per $100,000 of assessment.

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, 2016 non-residential properties experienced a decrease in market value of 2.9%, multi-family decreased 12.4% and residential decreased 3.6%.

The 2017 bylaw includes a split mill rate of 1.5186 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 1.5186 which 25% of the total requirement results in a rate on 1.2887. the 2016 split mill rate was 1.5158.

Taxable Assessment Growth
The 2017 - 2019 Corporate Plan assumes that new development assessment on taxable properties would be $127 million. Actual new development was over $194 million (assessment growth of 3.4%). Actual residential growth was higher than assumed in the corporate plan and multi-family and non-residential were lower than assumed. The 2017 ratio of residential assessment to non-residential assessment is 82/18 (2016 - 83/17).

 
Options/Alternatives
Not Applicable
Consultation/Engagement
As established by provincial legislation, the assessments have been prepared based on property sales between June 2015 and July 2016. Assessment notices were mailed on February 3, 2017. An Assessment Open House was held on March 8, 2017. The Assessor was 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 4, 2017.
Implementation/Communication
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, 2017 and are due on or before June 30, 2016 (excluding those on the pre-authorized payment plan).
Impacts
Not applicable

Fiscal Impact
Financial Implications:
The 2017 municipal tax requirement is $35,683,000 (annual taxes - $35,367,000, - supplementary taxes - $187,000 and annexed lands - $129,000).
Attachments
2017 Tax Bylaw

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