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RFD- 3900 Bylaws   Item #   10. f.    
Regular Council Meeting Agenda
Meeting Date: 03/23/2020  
Title:    C-1113-20 - Supplementary Assessment Bylaw - First Reading - Boje
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 increased 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 for supplementary assessments of new improvements for the purpose of taxation in 2020.

Proposed Motion
That first reading be given to Bylaw C-1113-20 - Supplementary Assessment Bylaw.
Introduced through Bill 25 - Red Tape Reduction Implementation Act, the MGA has been amended to include authorization for continuous bylaws. Historically, to authorize assessment on new improvements which are complete, occupied or in operation during the current year, but were not assessed at 100 per cent completion on the annual assessment prepared as of December 31 of the prior year, a Supplementary Assessment bylaw  was required to be passed annually before May 1. The MGA now includes section 325.1 which allows for a Supplementary Assessment bylaw passed prior to May 1 to remain in effect for subsequent years until they are repealed.

In any year where the proposed budget amount to be raised through taxation is equal to or greater than the prior year, any reduction to taxable assessment, as with the elimination of supplemental assessments, would result in an increase to the annual tax rate. As such, consideration to continue with supplemental assessments or repeal the bylaw is well aligned with the corporate planning process and budget approval.  

Supplementary assessments are pro-rated to reflect the period from which the improvement is complete, occupied or in operation to December 31. An increase in property value subsequent to a zoning change is due to market and is not included as supplemental assessment. In Alberta, most municipalities prepare supplementary assessments.
Supplemental assessment is optional for municipalities but has been the practice in the city for more than 15 years. It can only continue if Council passes the recommended bylaw. Council may opt to not authorize supplementary assessments which would require the budgeted supplementary revenue to be raised through annual taxes. 
Assessments are prepared by the Appointed Assessor and are subject to review and appeal by the owner of an assessed property. The notification process for supplementary assessment is similar to the process for annual assessments and details of costs and procedures for an appeal are included with the notice.

Assessments are only calculated on improvements completed, occupied or in operation from January through to September. Each May, directly after the annual tax notices are issued, a combined tax and assessment notice is issued for construction completed up to April 30. Combined notices will also be mailed in October for new improvements completed between May to September 30. Construction occurring between November and December is not separately assessed for supplementary however, the annual assessment issued the following year will reflect this growth. 

Property owners may file a complaint on any supplementary assessment notice, timelines for appeal are the same as for annual assessment notices.
An estimated 205 properties will receive a supplementary assessment in 2020.

Fiscal Impact
Financial Implications:
The approved 2020-2022 Corporate Plan includes a revenue from the taxation of supplemental assessment in the amount of $133,800. This is equivalent to 27% of the $418,565 which represents a 1% tax increase in 2020.
Proposed Bylaw C-1113-20 - Supplementary Assessment Bylaw

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