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RFD- 4151 Bylaws   Item #   10. h.    
Regular Council Meeting Agenda   
Meeting Date: 04/26/2021  
Title:    C-1158-21 2021 Property Tax and Supplementary Property Tax Rate Bylaw - First Reading - Frostad
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.

Information
Request for Decision Summary
First reading of Bylaw C-1158-21 – 2021 Property Tax and Supplementary Property Tax Rate Bylaw is presented for Council’s consideration. This bylaw sets the 2021 property tax rates.

Proposed Motion
That first reading be given to Bylaw C-1158-21 - 2021 Property Tax and Supplementary Property Tax Rate Bylaw.
Background/Analysis
Municipal Tax Rate
The Municipal Government Act authorizes a municipality to pass an annual property tax rate bylaw imposing a property tax sufficient to raise the necessary revenue to pay requisitions, expenditures and transfers as set out in the approved budget.  The 2021 rates include a 1% municipal tax increase and establishes a multi-family dwelling rate split of 1.4 and a non-residential rate split of 1.405.  These rate splits are aligned with the recent Property Tax Distribution Policy passed by Council.  All increases included in this tax rate bylaw are dedicated to building transfers to lifecycle reserves per recent budget decisions. 

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 is established in the 2021-2023 Corporate Plan and subsequent spring adjustment.

Education Requisition
The 2021 Education requisition has increased $97,294 over 2020; an increase of 0.6%; (2020 requisition had increased 1.64%)


Meridian Housing Foundation Requisition
The 2021 Housing Foundation operating requisition of $306,143.74  is $5,063.58 lower than the 2020 requisition; a 1.63% decrease (2020 requisition had increased 3.3% over 2019 level). 

Annexed Lands
Lands annexed in 2007 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.  Lands annexed in 2021 from Parkland County must be taxed at the County’s municipal tax rate until 2051 or until a portion becomes a new registered parcel or land as set out in the 2020 Lieutenant Governor in Council’s Annexation Order.  At the time this report was created, Parkland County rates were unavailable; 2021 rates are anticipated to be approved in time to be included in the report to Council for second and third reading of the tax rate bylaw, scheduled for May 10.  First reading has been prepared using this year's assessments with last year's rates.

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.  On average, for the twelve months ending June 30, 2020 non-residential properties experienced a decrease in market value of 4.63%, multi-family decreased 3.34% and residential decreased 4.35%.
The 2021 bylaw incorporates a multi-family dwelling rate split of 1.4 and a non-residential rate split of 1.405 per the Property Tax Distribution policy.  The split rate used in the previous property tax rate bylaw was 1.3776.

Taxable Assessment Growth
Taxable assessment on new development was 92,488,540 comprised of 74,837,580 in residential, 1,327,200 in multi-family and 16,323,760 in non-residential assessment.
Options/Alternatives
n/a
Consultation/Engagement
As established by provincial legislation, the assessments have been prepared based on property sales between June 2019 and July 2020.  Assessment notices were mailed on February 5.  Due to health restrictions the Assessment Open House was held virtually over the assessment complaint period.  Assessors and Finance staff were available to discuss current assessments, comparable assessments and related concerns.
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 21 and are due on June 30 (excluding those on pre-authorized payment plan).
 
Impacts
n/a

Fiscal Impact
Financial Implications:
The 2021 municipal tax requirement is $42,290,292, comprised of annual tax revenue of $42,075,463, estimated annexed lands revenue of $81,029, and estimated supplementary tax revenue of $133,800.
 
Attachments
Proposed C-1158-21 - 2021 Property Tax and Supplementary Property Tax Rate Bylaw

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