Bylaws    Item #   9. a.            
Regular Council Meeting Agenda
Meeting Date: 05/13/2019  
Title: C-1076-19 - Third Reading - 2019 Property Tax and Supplementary Property Tax Bylaw - Pungur-Buick
Department: Corporate Services
This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan
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 2019 rates of taxation.

Proposed Motion
That third reading be given to Bylaw C-1076-19 - 2019 Property Tax and Supplementary Property Tax Bylaw, as amended.
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 1.418.

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 policy. The amount of the tax revenue required and the Property Tax Distribution Policy are stated in the approved 2019 - 2021 Corporate Plan.

Education and Housing Foundation Requisitions
The Education requisition has not been issued as a result of the delayed 2019 Provincial budget. Administration has estimated the requisition by applying the 2018 Provincial Basic Rates to the City's 2019 equalized assessment. The estimation is $306,472 higher than the 2018 requisition; a 1.9% increase (2018 requisition had increased 3%).

Creation of the 2019 Housing Foundation requisition was unaffected by the status of the Provincial budget. It is $25,777 higher than last year; 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 Lieutenant Governor in Council's Annexation Order. Bylaw C-1076-19 has been amended for third reading and includes rates that have been established in the approved Parkland County Property Tax Bylaw 2019-05. Tax revenue to be raised through annexed lands is lower than budgeted. This is the effect of new parcel registration as mentioned earlier and the subsequent transition from annexed land assessment to City.

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 1.418 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 is 1.418 while 25% of the requirement would equate to 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 growth was $153 million or 2.6%. Both residential and multi-family assessments are higher than budgeted and non-residential assessment is lower. The 2019 ratio of residential to non-residential assessment remains unchanged since 2017 at 82/18.
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 valuations, comparables and related concerns. The deadline for assessment complaints was April 16th.
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 30th (excluding those on the pre-authorized payment plan).

Fiscal Impact
Financial Implications:
The 2019 municipal tax requirement of $40,448,000 is composed of estimated supplementary revenue of $187,000 and annual revenue of $40,261,000.

Draft Bylaw C-1076-19