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RFD- 3974 Bylaws   Item #   10. a.    
Regular Council Meeting Agenda
Meeting Date: 05/11/2020  
Title:    C-1116-20 - 2020 Property Tax and Supplementary Property Tax Rate Bylaw - Second and Third 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.

Request for Decision Summary
Second and third reading of Bylaw C-1116-20 - 2020 Property Tax and Supplementary Property Tax Rate Bylaw are being brought forward for Council's consideration. This bylaw sets the 2020 property tax rates.
Proposed Motion
That second reading be given to Bylaw C-1116-20 - 2020 Property Tax and Supplementary Property Tax Rate Bylaw.
That third reading be given to Bylaw C-1116-20 - 2020 Property Tax and Supplementary Property Tax Rate Bylaw.
Municipal Tax Rate
The Municipal Government Act, RSA 2000 cM-26, as amended, 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 2020 rates include a 0% municipal tax increase and a split rate of 1.3776.

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 2020 - 2022 Corporate Plan, as amended April 14, 2020.

Education Requisition
The 2020 Education requisition is $268,656 higher than the 2019 requisition; a 1.64% increase (2019 requisition had increased 1.9%).

Meridian Housing Foundation Requisition
The 2020 Housing Foundation requisition is $9,949 higher than the 2019 requisition; a 3.3% increase (2019 requisition had increased 9.3%).

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. Parkland County has passed Bylaw 2020-06 which authorizes rates of taxation for 2020. Actual revenue raised is 1.1% higher than budgetted.  

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, 2019, non-residential properties experienced an increase in market value of 0.11%, multi-family increased 4.02% and residential decreased 1.08%.

The 2020 bylaw includes a split rate of 1.3776 as per the Property Tax Distribution policy. As per policy, the split is based on the prior year's regional average split, or 25% of the total revenue requirement, whichever is higher. The 2019 regional split average was 1.3776, while 25% of the revenue requirement would be a split rate of 1.2389.  Therefore, the higher split of 1.3776 was used to calculate the non-residential rate.  The split rate used in the previous property tax rate bylaw was 1.418. 

Taxable Assessment Growth
Taxable assessment on new development was 102,083,300 comprised of 80,640,860 in residential, 142,500 in multi-family and 21,299,940 in non-residential assessment.
As established by provincial legislation, the assessments have been prepared based on property sales between June 2018 and July 2019. Assessment notices were mailed on January 30 and the Assessment Open House was well attended on March 4 where the Assessors and Finance staff were available to discuss current assessments, comparable assessments and related concerns. 
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 24 and are due on June 30 (excluding those on pre-authorized payment plan).

Fiscal Impact
Financial Implications:
The 2020 municipal tax requirement of $41,072,390 is comprised of estimated supplementary revenue of $133,800 and annual revenue of $40,938,590.
Proposed Bylaw - C-1116-20

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