Regular Council Meeting April 28, On Table Items

Transcription

1 Regular Council Meeting April 28, 2015 On Table Items Item Type Date Item No. Item Name Reason For On-Table Distribution Presentation April 28, Introduction of Art at Council Received after agenda production Presentation April 28, Delegation: RainCity Housing Received after agenda production Presentation April 28, City Owned and Operated Boat Received after agenda production Presentation April 28, Five Year Financial Plan and Related Bylaw Amended after agenda published Bylaw No April 28, Five Year Financial Plan and Related Bylaw Amended after agenda published Bylaw No Schedule A April 28, Property Tax Rates Bylaw No Amended after agenda published Document:

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3 Denise Dupré Acrylic End of Summer

4 Art at Council April 28, 2015 Tonight s artwork comes to us from Denise Dupre (PR: dew-pray) who hones her craft at the City s 2709 Esplande Studios. She is a selftaught artist inspired by the Impressionists, Picasso and Matisse. Denise s art-making styles include Contemporary Realism and Abstract. Her abstract paintings are inspired by color, movement and landscape. They reflect a fresh sense of immediacy and connect with an emotive style of painting. Denise enjoys working with a full spectrum of color and hopes this may engage the viewer to share in her joy of creating with a free sense of spirit and a purity of expression. The work we see tonight is titled End of Summer. It describes the setting of the hot summer sun, the apple orchards ready to be harvested and the autumn leaves beginning to make their presence. Denise would like to extend an invitation for everyone to check out her current exhibition titled Abstracts The Joy of Color at the Gallery Bistro down on Clarke Street which is on until May 24 th. Document Number: Version: 1

5 Gordon timeline: December 2011 RainCity selected as operators Early 2012 RainCity joined Tri-Cities Homelessness & Housing Task Group October 2012 RainCity staff participated at Tri-Cities Connect Day in Coquitlam October 2012 Community Open House in Coquitlam on design, site planning, safety & security Gordon timeline: Spring & Summer 2013 Tri-Cities H&H Task Group Design Subcommittee for building October 2014 Community Open House on Development Permit Application submission Spring 2014 Tri-Cities H&H Task Group Operations Subcommittee struck for 3030 Gordon July 2014 Good Neighbour Agreement signed 1

6 Gordon timeline: August 2014 update newsletter went out to the community from RainCity Housing August/September 2014 site cleared November 2014 construction began update flyer to neighbours from Ventana, the general contractors Next steps Gordon timeline next steps: RainCity Housing and Hope For Freedom are going door to door, providing project information and generating an contact list Regular updates will be ed and posted online Monthly articles in Tri-Cities media A Community Advisory Committee to be formed prior to opening Building to open November

7 7 CAC Community Advisory Committee A forum to freely exchange information A solution focused group An opportunity for volunteers A way to access local knowledge and history A way to celebrate successes A way to monitor community impact CAC Community Advisory Committee Community Advisory Committee membership: Two RainCity staff reps Program Manager, Associate Director One tenant rep (selected once fully tenanted) Four partner reps City staff, Health Authority staff, RCMP or Community Policing, BC Housing Seven community reps local businesses, neighbours, other service providers 3

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9 9 4/27/15 City of Port Moody FIRE-RESCUE FIRE-RESCUE 1

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15 15 City of Port Moody DRAFT Financial Plan Tuesday, April 28 th, 2015 posted online at Financial Plan Budget Timeline Budget Guidelines approved Library Board Budget presentation to Council October 28, 2014 Police Board Budget presentation to Council November 25, Council Budget Workshop January 17, 2015 Town Hall Meeting March 5, 2015 Budget & Tax Rate Bylaw first three readings April 28, 2015 Budget & Tax Rate Bylaw adopted May 12, 2015 Budget packages to Departments 2014 July August Sept Oct Nov Dec Jan Feb March April May 2015 Departments Drafting Budgets Staff Reviews (Finance, Senior Management) NEW Council Deliberations 2 prepared by Financial Services Department

16 2015 Financial Plan 16 Budget Drivers - Revenues Utility Fees 14% Taxation 47% Reserve Transfers 23% Fees and Charges 9% Grants 6% Other Sources 1% 3 prepared by Financial Services Department 2015 Financial Plan Budget Drivers - Growth Growth (new construction estimate) Taxation from new growth offsets costs related to growth Year New Growth ($) Tax Impact (%) , % ,107, % , % , % , % , % , % , % , % , % , % , % 4 prepared by Financial Services Department

17 Tax paid by utility companies to use ROWs to place infrastructure (pipes, poles, fiber optic cables, wires, etc.) Tax is 1% of gross sales within the City from two years previous (e.g tax based on 2013 gross sales within Port Moody) Financial Plan Non Property Tax Revenues 1% Utility Tax FortisBC (natural gas sales) $ 189,500 $ 184,000 $ 178,500 $ 172,900 $167,400 BC Hydro (electricity sales) 176, , , , ,100 Shaw (basic cable sales) 51,900 49,900 47,900 45,900 43,900 Telus (basic land line sales) 35,300 34,300 33,300 32,300 31,300 Total Annual Revenues $ 453,500 $ 449,400 $ 445,200 $ 440,900 $ 436,700 5 prepared by Financial Services Department 2015 Financial Plan Non Property Tax Revenues Generating Capacity Grant Provincial Order in Council Requires BC Hydro to pay an annual grant to cities hosting hydro generating facilities (Burrard Thermal in Port Moody) 2007: Order in Council Revised Amount increased from $503,000 to $876,000 based on annual index Year Amount ($) Increase ($) , , , ,000 54, ,003,000 73, ,072,000 69, ,126,000 54, ,173,000 47, ,235,000 62, ,288,000 53, ,319,000 31, ,340,000 21, ,375,000 35, ,411,000 36, ,420,000 9,000 6 prepared by Financial Services Department

18 CPR Lease Public Safety Building $52,800 - Annual Lease Payments $11,200 - Property Taxes Financial Plan Non Property Tax Revenues Lease $38,500 Maintenance Recovery 7 prepared by Financial Services Department 2015 Financial Plan Non Property Tax Revenues Lease Inlet Centre Residences 96 Units ($1.3M lease payments over a 60 year lease) $55,000 in annual lease payments and investment earnings Ongoing property tax ($46,000) & utilities ($73,000) 8 prepared by Financial Services Department

19 Financial Plan Non Property Tax Revenues Lease Boathouse Restaurant (30 Year Agreement to 2036) Land Lease $ 45,000 $ 45,000 $ 48,800 $ 60,000 $ 60,000 Sales Revenue 45,000 45,000 45,000 45,000 45,000 Property Tax 38,000 39,000 40,000 41,000 42,000 Utilities (Water, Sewer) 18,000 18,000 18,000 18,000 18,000 Total Annual Revenues $ 146,000 $ 147,000 $ 151,800 $164,000 $165,000 Land Lease increases to $60,000 in 2018 City shares 3.5% in revenues above $3 Million Utility amounts estimated based on average metered usage for water and sewer 9 prepared by Financial Services Department 2015 Financial Plan Budget Drivers Asset Funding 10 City has approximately $651 Million in assets Depreciating, or using up, approximately $7 Million annually Traditional Capital Asset Funding Land Sales not a sustainable source of revenue Development builds infrastructure but does not replace Asset Renewal Levy % $171, % $ 84, % $137, % $285, % $309, % $321,000 Proposed % $334,000 Proposed % $348,000 Proposed % $358,000 Proposed % $368,000 Proposed

20 2015 Financial Plan 20 Budget Drivers Asset Management 11,500,000 AMIP 9,500,000 Water Utility $1,229,000 7,500,000 Sewer Utility $1,679,000 Annual Funding 5,500,000 3,500,000 1,500, ,000 Drainage $1,612,000 Op Budget $293,000 Major Roads $830,530 Equip Reserve $792,300 Asset Reserve $4,027,470 Water Utility $1,412,000 Sewer Utility $1,740,000 Drainage $550,000 Major Roads $540,000 Equip Reserve $792,300 Asset Reserve $2,100,000 Shortfall Water Utility $183,000 Sewer Utility $61,000 Asset Reserve $1,927,470-2,500,000 Major Roads $290,530 Op Budget $293,000 Drainage $1,062,000-4,500,000 $10,463,300 $7,134,300 $3,329, prepared by Financial Services Department 2015 Financial Plan Budget Drivers Debt Recreation Centre Debt Final Payment included in 2015 Budget $625,000 in annual Debt Service will be considered during the 2016 budget deliberations Projected Projected Projected Projected Projected 12 prepared by Financial Services Department

21 2015 Financial Plan 21 Budget Drivers Debt Based on population topping out at 38,200 in prepared by Financial Services Department 2015 Financial Plan Budget Drivers Services Taxed (excludes utility funds) Arts & Recreation Services 14% Support Services 18% Emergency Services 50% Engineering, Operations & Parks Services 12% Fiscal Services 1% Library Services 5% 14 prepared by Financial Services Department

22 2015 Financial Plan 22 Budget Drivers Expense Categories Debt 1% Supplies & equipment 13% Transfers to reserves 15% Salaries & Wages 50% Contracts and fees 16% Heat, Light & Phone 2% 15 Vehicles 2% Training & development 1% prepared by Financial Services Department 15 prepared by Financial Services Department 2015 Financial Plan 2015 Budget Summary (1% = $321,000) Item Amount Tax Comment 2015 Maintain Service Levels: $ % Revenue Changes -98, Revenue increase in arena rentals, recreational memberships and children s programs Growth -157, New tax revenues from growth Salaries 678, Miscellaneous -72, COL (estimated), steps, reclassifications, New position Internal recoveries, Equipment and Fleet costs, Contracted Services, Property insurance Reserves 55, Net changes in transfers to/from reserves Unavoidable Regulations 96, Increase to WCB, EI, CPP Subtotal City Operations 501, Police 264, Labour Increases, K9 Integrated Unit, Growth allocation Subtotal City & Police Operations 765, Asset Renewal Levy - Capital 321, Increase the levy by 1% per Council approved Guidelines TOTAL Proposed Tax Increase 1,086, prepared by Financial Services Department

23 Financial Plan 2015 Budget Summary (1% = $321,000) 2014 Budget 2015 Budget $ Variance $ Per House Administration $ 949,928 $ 953,406 $ 3,478 $ 0.20 Corporate Services 2,764,828 2,795,427 30, Financial Services 1,278,927 1,295,595 16, Community Services 4,109,594 4,436, , Engineering, Parks & Operations 4,005,209 4,082,552 77, Development Services 856, ,398 22, Fire Services 6,779,637 7,018, , Library Services 1,531,342 1,574,711 43, Fiscal Services - 1,191,307-1,450, , General Government Total 21,084,369 21,585, , Police Services 9,321,794 9,585, , Asset Levy (1%) 1,446,250 1,767, , Totals $ 31,852,413 $ 32,938,668 $ 1,086,255 $ prepared by Financial Services Department 2015 Financial Plan Budget Summary 2016 (tax revenue required ~ $943,000) New Construction Tax Revenues (1.44% growth) 481,338 Asset Renewal Levy (1.0%) 334,000 Labour Impact (cost of living, step increases, reclassifications) 531, (tax revenue required ~ $997,000) New Construction Tax Revenues (0.02% growth) 7,044 Asset Renewal Levy (1.0%) 348,000 Labour Impact (cost of living, step increases, reclassifications) 587, (tax revenue required ~ $994,000) New Construction Tax Revenues (0.02% growth) 7,044 Asset Renewal Levy (1.0%) 358,000 Labour Impact (cost of living, step increases, reclassifications) 575, (tax revenue required ~ $1,020,000) New Construction Tax Revenues (0.02% growth) 7,044 Asset Renewal Levy (1.0%) 368,000 Labour Impact (cost of living, step increases, reclassifications) 519, prepared by Financial Services Department

24 2015 Financial Plan 2015 Major Capital Projects 24 Road Reconstruction (various locations) $ 1,875,000 North Shore Artificial Turf Field & Track $ 1,700,000 Chestnut Pump Station Upgrades $ 750,000 Vehicle Replacements $ 747,000 IT Hardware and Software Upgrades $ 629,000 Transportation Projects (Traffic Calming, Signage & Bus Stops) $ 470,000 Recreation Complex - Building Improvements $ 340,000 Asset Management Planning $ 250,000 Works Yard - Air handling in garage $ 175,000 Replace Float & Dredging at Rocky Point Park $ 100,000 Storm & Sanitary Sewer System Upgrades (various locations) $ 95, prepared by Financial Services Department 2015 Financial Plan Major Capital Projects 2016 Vehicle Replacements $ 1,418,400 Watermain Upgrades $ 825,000 Storm & Sanitary Sewer System Upgrades $ 715, Landfill Closure $ 2,320,000 Storm & Sanitary Sewer System Upgrades $ 1,550,000 Road Reconstruction $ 1,350,000 Watermain Upgrades $ 1,160, Storm & Sanitary Sewer System Upgrades $ 2,040,000 Road Reconstruction $ 1,500,000 Arts Centre - Building Improvements $ 535, Recreation Complex - Building Improvements $ 2,320,000 Storm & Sanitary Sewer System Upgrades $ 1,200,000 Transportation Improvements (Traffic Calming, Signage & Bus Stops) $ 775, prepared by Financial Services Department

25 2015 Financial Plan Property Tax Increases - $566,700 Average assessed Household Budget 2016 Budget 2017 Budget 2018 Budget 2019 Budget General Government 1.56% 1.14% 1.14% 1.14% 1.14% Port Moody Police 0.82% 0.68% 0.72% 0.64% 0.63% Subtotal - Operations 2.38% 1.82% 1.86% 1.78% 1.77% Asset Renewal Levy - Capital 1.00% 1.00% 1.00% 1.00% 1.00% Total Tax Increase 3.38% 2.82% 2.86% 2.78% 2.77% * Average value based on April, 2015 BC Assessment revised Assessment Roll ** Approximately $18 for every 1% increase (e.g. 3.38% x $18 ~ $62) 21 prepared by Financial Services Department 2015 Financial Plan Utility Charges - $566,700 Average Assessed Household 2014 Budget 2015 Budget $ Variance % Variance Sanitary Sewer Services (approved) $ 303 $ 313 $ % Water Services (approved) $ 357 $ 371 $ % Garbage & Recycling Services (approved) $ 304 $ 304 $ % Subtotal (User Fee Charges) $ 964 $ 988 $ % Storm Drainage Services (proposed) $ 55 $ 58 $ % Total Utility Charges $ 1,019 $ 1,046 $ % 22 prepared by Financial Services Department

26 Financial Plan Total Charges - $566,700 Average Assessed Household 2014 Budget 2015 Budget $ Variance User Fee/Tax Impact General Government $1,201 $1,230 $ % Port Moody Police $535 $550 $ % Subtotal $1,736 $1,780 $ % Asset Renewal Levy $84 $102 $ % Fire Hall #1 Replacement Levy $26 $26 $0 0.00% Subtotal $1,846 $1,908 $ % Storm Drainage $55 $58 $3 5.45% User Fee Utilities (Water, Sewer, Garbage & Recycling) $964 $988 $ % Total Property Charges $2,865 $2,954 $ % * Average value based on April, 2015 BC Assessment Roll 23 prepared by Financial Services Department 2015 Financial Plan Total Dollar Increases $566,700 Average Assessed Household General Government Police Asset Levy Subtotal Storm Drainage Utility User Fee Utilities Total with Utilities 2015 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $110 * Approximate value based on April, 2015 BC Assessment revised Assessment Roll 24 prepared by Financial Services Department

27 2015 Financial Plan Service Costs/Service VALUE 27 Police Services Fire Services Water Utility Sewer Utility Solid Waste Services Storm Drainage Engineering & Parks Community Services Development Services Library Services Financial Services Corporate Services City Administration Fiscal Services Total ,954 Cable TV (HD Basic) Telephone & Internet Home Security System Home Insurance Gas & Electricity Total , ,044 4, proposed Costs based on Average 2014 Assessed value of household $566, prepared by Financial Services Department 2015 Financial Plan Tri City Comparison Average Assessed Household Average Assessed Value Total Charges Average Household Total $ Increase Total % Increase Port Moody $ 566,700 $ 2,954 $ % Coquitlam $ 594,500 $ 2,982 $ % Port Coquitlam $ 463,800 $ 2,583 $ % Total Charges includes taxes, levies and utility user fees Information provided by City of Coquitlam Information provided by City of Port Coquitlam 26 prepared by Financial Services Department

28 28 Your Tax Notice Thursday, July 2, prepared by Financial Services Department Your Tax Notice (cont d.) Increases $ 29 (1.56%) City Services $ 15 (0.82%) Police Services $ 18 (1.00%) Asset Renewal Levy $ 0 (0.00%) Firehall Replacement Levy $ 3 (5.45%) Storm Drainage 28 prepared by Financial Services Department

29 Financial Plan Bylaw 2015 Tax Rate Bylaw 29 The Financial Plan Bylaw and the 2015 Tax Rate Bylaw are presented to Council for consideration of first three readings: THAT City of Port Moody Five Year Financial Plan Bylaw No as presented in item 9.4 of the on-table package distributed at the April 28, 2015 Regular Council Meeting be now read a first, second, and third time. THAT City of Port Moody 2015 Property Tax Rates Bylaw No as presented in item 9.5 of the on-table package distributed at the April 28, 2015 Regular Council Meeting be now read a first, second, and third time. 29 prepared by Financial Services Department

30 30 Bylaw No A Bylaw to establish the budget for the Five Year Financial Plan. The Council of the City of Port Moody enacts as follows: 1. Citation 1.1 This Bylaw may be cited as City of Port Moody Financial Plan Bylaw, 2015, Bylaw No Attachments and Schedules 2.1 The following schedule attached hereto is hereby adopted and made part of this Bylaw: Schedule "A" - Financial Plan 2015 Schedule B - Revenue Plan Objectives and Policies 3. Severability 3.1 If a portion of this bylaw is found invalid by a court, it will be severed and the remainder of the bylaw will remain in effect. Read a first time this day of, Read a second time this day of, Read a third time this day of, Adopted this day of, M.E. Clay Mayor D. Shermer, Corporate Officer Document:

31 31 I hereby certify that the above is a true copy of Bylaw No of the City of Port Moody. Corporate Officer City of Port Moody Financial Plan Bylaw, 2015, Bylaw No

32 32 Schedule A - Financial Plan, REVENUES Taxation $34,699,291 $36,125,067 $37,130,790 $38,133,292 $39,161,914 Sales, Fees and User Charges $17,411,579 $18,151,138 $18,871,166 $19,531,389 $20,177,071 Other Revenue $6,686,869 $6,541,136 $7,558,763 $6,059,530 $6,118,190 Development Levies $100,322 $15,045 $15,045 $15,045 $15,045 $58,898,061 $60,832,386 $63,575,764 $63,739,256 $65,472,220 EXPENSES Operating Expenses ($60,682,794) ($58,970,486) ($61,672,434) ($63,637,793) ($66,280,478) SURPLUS/(DEFICIT) ($1,784,733) $1,861,900 $1,903,330 $101,463 ($808,258) NON-CASH ITEMS Capital Asset Amortiz. & Disp. $7,540,640 $8,294,703 $9,124,173 $10,036,590 $11,040,250 $7,540,640 $8,294,703 $9,124,173 $10,036,590 $11,040,250 Cash Items Capital Expenditures ($12,201,621) ($7,024,238) ($8,221,790) ($6,152,404) ($10,858,630) Debt principle repayment ($1,272,625) ($730,758) ($743,988) ($757,748) ($772,058) ($13,474,246) ($7,754,996) ($8,965,778) ($6,910,152) ($11,630,688) TRANSFERS FROM Accumulated Surplus $255,540 $0 $0 $0 $0 Reserves/Funds $15,474,491 $6,786,911 $7,586,341 $8,012,456 $13,123,542 Equip. Replace. Reserve Fund $1,015,187 $1,422,655 $742,421 $355,698 $424,722 Heritage Fund $10,188 $0 $0 $0 $0 Land Sales Reserve Fund $549,928 $60,000 $773,333 $0 $0 $17,305,334 $8,269,566 $9,102,095 $8,368,154 $13,548,264 TRANSFERS TO Reserves/Funds ($8,585,028) ($9,670,882) ($10,167,104) ($10,602,914) ($11,160,102) Equip. Replace. Reserve Fund ($1,001,967) ($1,000,291) ($996,716) ($993,141) ($989,466) ($9,586,995) ($10,671,173) ($11,163,820) ($11,596,055) ($12,149,568) TOTAL City of Port Moody Financial Plan Bylaw, 2015, Bylaw No

33 Schedule B Revenue Policy Disclosure Policies & Objectives Requirement: the proportion of total revenue proposed to come from each funding source 33 Table one below depicts the proportionate share of revenue received from the various funding sources in The greatest proportion of revenue generated by the City is property taxes. Property taxes are a stable and consistent revenue source for many services including protective, community and transportation services that would be complicated to fund on a user-pay basis. For this reason, property taxation will continue to be the City s major source of revenue. The second largest revenue source is user fees and charges. City services such as water, sewer, garbage and recycling utilize user fees to attempt to fairly apportion the value of that service to those who use the service. Council recognizes residential water metering to be an equitable method to distribute costs to the user. However, the business case has not been adequately undertaken to fully understand the financial implications that a water metering system would have to the individual users. Policy: Council is committed to reducing taxation in favour of the following practices: Fees and charges are reviewed annually to maximize the revenues from services and also to ensure they are in line with the market rate for similar services or programs. Council recognizes that costs of some services could be more fairly recovered from user fees than property taxes. Council has considered, where feasible, to shift the cost burden of municipal services from property taxes to user fees. However, with respect to user fees Council has concerns that the overall interests of the community are not always best served. Savings transferred from taxpayers by shifting costs to users also shift a financial burden to some service users that cannot absorb the shifts. Senior government, as well as other agency grant opportunities are applied for and leveraged wherever possible, as an external source of revenue to supplement scarce capital and operating property taxation revenues. However, Council will pursue federal and provincial funds and other grant opportunities only after assessing their full-cost implications. When certain and applicable City land parcels have been identified for development, leasing opportunities rather than straight land sales are a consideration as ownership of City land inventories can be retained while still generating ongoing and sustainable lease, tax, and utility revenue streams, thereby reducing property taxation. Wherever possible the City maximizes development opportunities to provide community amenities. Also, new developments generally should fund new increased infrastructure requirements. Council is committed to developing a sustainable infrastructure replacement plan by moving towards a pay-as-you go strategy for infrastructure replacement. This is put into practice through the process of transferring a portion of tax revenues to the Asset Reserve. These funds are then set aside and will be utilized as capital funding in recognition that other more historical capital revenue sources, such as land sales, are finite capital funding sources and will not be as available in the future. City of Port Moody Financial Plan Bylaw, 2015, Bylaw No

34 34 Objective: The 2015 financial plan includes the following distribution of revenue: Table one: proportions of total revenue Revenue Source % Total Revenue Municipal Taxation 57% Fees and Charges 30% Government Contributions 4% Investment Revenue 1% Payment in Lieu of Taxes 4% Utility Taxes 1% Development Levies 0% Other 3% TOTAL 100% City of Port Moody Financial Plan Bylaw, 2015, Bylaw No

35 Requirement: the distribution of property taxes among the property classes 35 Table two provides the distribution of property tax revenue among the property classes. Table three provides the comparison of the mill rates among the property taxes. The share of property tax revenue by class in 2015 is budgeted to be similar to levels in The City has delineated six property tax classes within the City, with separate rates levying taxes to six different types of property. Class 4 Major Industry has three rates, two of which are set by the Province to cap certain port properties to encourage new investments in those properties. The City s tax rate ratios are relatively consistent over the years except for classes where external forces, such as provincial capping and assessment calculation practices, are mandated by the Province. This practice allows taxpayers to be confident that their property taxes will only increase as much as their proportionate share of the increase required by the City year over year. Policy: Taxation versus Services Consumed The City does not relate the amount of the tax levied on each individual property with the amount of service the City provides each property. Similarly, the City does not levy its taxes based on the number of occupants in a household utilizing services. Further to this, Council commits to ongoing reviews with the objective to establish a tax policy that best distributes property taxes among the property classes. Tax Class Capping Council is concerned regarding the distribution of property taxes for classes where provincial capping has been legislated. Provincial tax rate capping can affect the equity of the allocation due to the capping being only applied to certain properties within the class. The Ports Property Tax Act Bill 2004 restricts the municipal tax rates to $27.50 per $1,000 of assessment value. Eligible new construction relating to port properties is taxed at $22.50 per $1,000 of assessment value. The Province provides an annual grant to the City to assist in offsetting the capping, but since the grant is indexed to inflation and the tax increase may be higher, other tax payers are allocated the variance. Class 2 Utilities with respect to Local Government Act 329/96 - is capped at the greater of $40 or 3.28 times Class 6 Business/Other. Allocating the Tax Burden After the provincial restrictions or capping of tax rates are met, the tax rates for the remaining classes are established by adding the Council approved percentage tax increase to distribute the tax burden as equitably as possible across all tax classes, utilizing a fixed share approach. Port Moody reviews its tax rates and the revenue derived from the different property tax classes periodically, and strives to keep the tax rates comparable to neighbouring jurisdictions. As mentioned, Council s policy is to allocate the tax percentage increase equitably to each of the different tax classes recognizing that all the different tax classes have their own individual financial challenges. The impact to tax rates can appear inequitable in some classes even though the tax dollars paid rise more equitably. The reason some tax rates rise more while other tax rates remain more City of Port Moody Financial Plan Bylaw, 2015, Bylaw No

36 36 constant is due to the fact that the assessed values, which the tax rates are based on to generate the required revenues, can move in different directions by class as well. When assessed values move in opposite directions for certain classes, the tax rates also need to move in step to keep the tax dollars paid equitable. Over time, tax rates moving in opposite directions to adjust for assessed values moving in opposite directions, create significant variances in the tax rates between the classes. The only equity Council can achieve, without purposely directing tax shifts, is to try and keep the percentage increases to the tax dollars paid as equitable as possible. Objective: The 2015 financial plan includes relatively little change in the distribution of property taxes among the property classes. Council s informal policy is to spread the tax burden equitably to each taxpayer in each class. Table two: distribution of property tax revenue among the property classes (2014) Property Class % Property Tax Residential (1) 68.3% Utilities (2) 0.3% Major Industry - Ports (4) Major Industry Other (4) 2.0% 13.7% Light Industry (5) 1.8% Business (6) 13.8% Recreation (8) 0.1% TOTAL 100.0% Table three: distribution of property tax mill rates (2014) Property Class Ratio Residential (1) 1.00: 1 Utilities (2) 11.04: 1 Major Industry - Ports (4) 7.81: 1 Major Industry Other (4) 19.46: 1 Light Industry (5) 5.28: 1 Business (6) 2.89: 1 Recreation (8) 0.81: 1 City of Port Moody Financial Plan Bylaw, 2015, Bylaw No

37 Requirement: the use of permissive and revitalization tax exemptions Section 224 of the Community Charter provides Council with the authority to grant permissive property tax exemptions on land or improvements. In 2014, Council approved the list of permissive tax exemptions granted for the 2015 taxation year and the estimated amount of tax revenue foregone. The list demonstrates the policy of Council that permissive exemptions are granted to not-for-profit institutions, including religious, historical and cultural, that form a valuable part of our community. The City provided 2015 permissive tax exemptions to: The B.C. Conference of The Mennonite Brethren Churches The Roman Catholic Archbishop of Vancouver - St. Joseph's Catholic Church The Trustees of St. Andrews Congregation of the United Church of Canada Parish of St. John the Apostle His Highness Prince Aga Khan Shia Imami Ismaili Council (Tenants,) Churchill Ventures Inc. (Owner) Simon Fraser Society for Community Living Port Moody Heritage Society (Tenants), City of Port Moody (Owner) Port Moody Ecological Society Port Moody Senior Housing Society Port Moody Arts Centre Society (Tenants), City of Port Moody (Owner) 37 Royal Canadian Legion Port Moody Branch #119 Sasamat Outdoor Centre (Tenants), Association of Neighbourhood Houses of BC (Owner) In accordance with the Community Charter, notice to adopt the bylaws must be published, and the bylaws adopted by October 31. Civic tax revenue foregone, as a result of the permissive tax exemptions for charitable organizations is estimated to be $97,000 for As per Section 227 of the Community Charter, notice of this exemption was given to the public. As per Section 98(2) of the Community Charter, this amount of foregone revenue will be disclosed in the City of Port Moody 2015 Annual Report. Policy: Permissive tax exemptions Council is committed to the continued support of local organizations for permissive tax exemptions since the organizations provide value to our community that, in Council s view, should be supported by tax payers. City of Port Moody Financial Plan Bylaw, 2015, Bylaw No

38 38 Revitalization tax exemptions Section 226 of the Community Charter provides Council with the authority to grant revitalization property tax exemptions on land or improvements to encourage revitalizations within the municipality. The City does not currently provide tax exemptions on property or improvements to encourage revitalization of different areas of the City. Objective: Each year Council will examine its permissive tax exemption policy to determine if it should be expanded. In the future, with appropriate public consultation, council may choose to provide revitalization tax exemptions in other ways. City of Port Moody Financial Plan Bylaw, 2015, Bylaw No

39 39 Bylaw No A Bylaw to establish the City of Port Moody Property Tax rates for The Council of the City of Port Moody enacts as follows: 1. Citation 1.1 This Bylaw may be cited for all purposes as "City of Port Moody Annual Property Tax Rates Bylaw, 2015, No Repeal 2.1 Bylaw No. 2978, 2014, City of Port Moody Annual Property Tax Rates Bylaw and any amendments thereto are repealed. 3. Intent 3.1 The following rates are hereby imposed and levied for the year 2015: For all lawful general purposes of the municipality on the assessed value of land and improvements taxable for general municipal purposes, rates appearing in column "A" (City Services), B (Police Services), C (Asset Renewal Levy), D (Firehall No. 1 Replacement Levy) & E (Storm Drainage) of the Schedule attached to and forming a part of this Bylaw For purposes of the Greater Vancouver Regional District on the assessed value of land and improvements taxable for hospital purposes, rates appearing in column "F" of the Schedule attached to and forming a part of this Bylaw. 4. Attachments and Schedules 4.1 Schedule "A" detailing tax rates for 2015 is attached hereto and made part of this Bylaw. 5. Severability 5.1 If a portion of this Bylaw is found invalid by a court, it will be severed and the remainder of the Bylaw will remain in effect. Document: D

40 40 Read a first time this day of, Read a second time this day of, Read a third time this day of, Adopted this day of M.E. Clay Mayor D. Shermer, Corporate Officer I hereby certify that the above is a true copy of Bylaw No of the City of Port Moody. Corporate Officer City of Port Moody Annual Property Tax Rates Bylaw, 2015, No

41 41 SCHEDULE "A" Tax Rates (dollars of tax per $1, taxable value) CLASS A B C CITY SERVICES POLICE SERVICES ASSET RENEWAL LEVY 1. Residential $ $ $ Utility $ $ $ Supportive Housing $ $ $ Major Industry $ $ $ Major Industry-Port Properties $ $ $ Major Industry-Port Properties (New Investment) $ $ $ Light Industry $ $ $ Business/Other $ $ $ Managed Forest Land $ $ $ Recreational/Non-Profit $ $ $ Farm $ $ $ CLASS D E F FIREHALL NO.1 REPLACEMENT LEVY STORM DRAINAGE REGIONAL DISTRICT 1. Residential $ $ $ Utility $ $ $ Supportive Housing $ $ $ Major Industry $ $ $ Major Industry-Port Properties $ $ $ Major Industry-Port Properties $ $ $ (New Investment) 5. Light Industry $ $ $ Business/Other $ $ $ Managed Forest Land $ $ $ Recreational/Non-Profit $ $ $ Farm $ $ $ City of Port Moody Annual Property Tax Rates Bylaw, 2015, No