August 23, 2016 at 9:00 a.m. Page. A. CALL TO ORDER Chair B. APPROVAL OF AGENDA:

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1 CITY OF QUESNEL QUESNEL MUNICIPAL COUNCIL Standing Committee FINANCIAL SUSTAINABILITY & AUDIT Special Open AGENDA August 23, 2016 at 9:00 a.m. Page A. CALL TO ORDER Chair B. APPROVAL OF AGENDA: C. ADOPTION OF REGULAR MINUTES: 2-3 1) Minutes of July 12, 2016 D. ACTIONS / OLD BUSINESS: 4 1) Action Summary E. NEW BUSINESS: 1) Finance Department Update 2) Spending Issues (Overage) 5-8 3) Capital Review ) Permissive Exemptions F. MOVE TO SPECIAL CLOSED MEETING Pursuant to the Community Charter: s.90(l); Discussions with City officers and employees respecting City objectives, measures and progress reports for the purposes of preparing an annual report under Section 98 of the Community Charter. 1) Special Closed G. MOVE TO RELEASE ITEMS FROM SPECIAL CLOSED TO SPECIAL OPEN H. MOVE TO ADJOURN SPECIAL CLOSED AND RETURN TO SPECIAL OPEN I. CORRESPONDENCE: J. NEXT MEETING September 13, 2016 K. ADJOURNMENT: Page 1 of 18

2 MEETING NO. 13 A Municipal Council Standing Committee - FINANCIAL SUSTAINABILITY & AUDIT Meeting was held on the 12th day of July, 2016 commencing at 9:00 a.m. at Council Chambers, City Hall, 410 Kinchant Street. Present: Committee Members: Mayor Bob Simpson [CHAIR], Councillors Scott Elliott Staff: City Manager Byron Johnson, Deputy City Manager/Director Finance and Corporate Services Kari Bolton Guests: Councillor Laurey-Anne Roodenburg Regrets[R]/Absences[A]: Councillor Thapar [R] A. CALL TO ORDER - CHAIR Chair Simpson called the meeting to order at 9:00 a.m. B. APPROVAL OF AGENDA: B.1) Addenda: E(7) Investments MOTION-39 MOVED Councillor Elliott, Seconded City Manager Johnson and resolved: THAT the Financial Sustainability and Audit Committee approve the July 12, 2016 Agenda, as amended: Addition: E(7) Investments CARRIED C. ADOPTION OF REGULAR MINUTES: C.1) Special Open Minutes of June 21, 2016 MOTION-40 MOVED Councillor Elliott, Seconded Mayor Simpson and resolved: THAT the Financial Sustainability and Audit Committee adopt the Special Open Minutes of June 21, 2016 as presented. CARRIED C.2) Special Open Minutes of June 22, 2016 MOTION-41 MOVED Councillor Elliott, Seconded Mayor Simpson and resolved: THAT the Financial Sustainability and Audit Committee adopt the Special Open Minutes of June 22, 2106 as presented. CARRIED D. ACTIONS / OLD BUSINESS: D.1) Action Summary Reviewed and revised E. NEW BUSINESS: E.1) Finance Department Update Property Tax season went well. 95% of taxes were collected by the due date. E.2) E.3) Spending Issues (Overage) Potential overlay project on Brownmiller discussing cost sharing with West Fraser Timber Co. Ltd. Gas Tax Policy - Attached Reserves and Deferred Revenue Policy The Committee discussed the policy and agreed to leave it as it currently stands which maintains flexibility for use of gas tax funds. Minutes of July 12, 2016 Page 2 of 18

3 Meeting No. 13 Financial Sustainability & Audit Committee 12 July, 2016 E.4) E.5) Old Playground Equipment Report - Director Bolton Discussion occurred around old equipment at the West Fraser Timber Park and other upcoming playground removals/replacements. Staff to obtain a signed waiver for any purchase of old equipment. Master Fee Bylaw - Director Bolton Committee reviewed the Master Fee Bylaw and agrees with the initial direction. The Bylaw will be brought forward to the Committee in September/October of 2016 with proposed updates. E.6) E.7) Initial Budget Direction - Director Bolton The Committee discussed changing the timeline so that the capital budget comes forward before the operating budget. Investments - Director Bolton Director Bolton discussed the current returns available on investments. MOTION-42 MOVED Councillor Elliott, Seconded Mayor Simpson and resolved: That the Financial Sustainability and Audit Committee recommend to Council that Council approves opening an account at Integris Credit Union for the purpose of investment of excess funds until required for operations with two of the following staff members required as signing authorities for any transaction; City Manager, Director of Corporate and Financial Services and Supervisor of Financial Services. CARRIED F. CORRESPONDENCE: N/A G. NEXT MEETING August 2, 2016 H. ADJOURNMENT: With there being no further business to discuss, the Financial Sustainability and Audit Committee meeting ended at 10:47 a.m. CERTIFIED CORRECT Mayor Bob Simpson [CHAIR] Minutes of July 12, 2016 Page 3 of 18

4 Action Summary Page 4 of 18 Financial Sustainability & Audit Committee Action Tracking Summary 2016 [ ] Date # Responsible Action Status/ Complete 2015 Dec B.Simpson Discuss Disabled Parking Awareness signage with Business Improvement Associations 2016 MAR 8 70 M.Thomas Add to Council Fall Strategic Planning Session - Summary of playgrounds [G.Albers] together with other park amenities, such as flower beds MAY 31 No actions FUTURE AGENDAS THAT Council receives the draft City of Quesnel Active Transportation Plan ("Plan"); AND THAT Council approves the Plan and directs staff to refer the implementation of the Plan's capital planning requirements to the Financial Sustainability and Audit Review Committee. From Apr 19/16 [#8] DCC Development Costs Overview Fall, 2016 Mayor mw BIAs Council referral Quesnel ATP Strategies and Ac As per BJ referred to Stat. Planning Invite Council

5 Capital Review Page 5 of 18 City of Quesnel 2016 Capital Projects Com Project Description Approved Actual Spending Estimate to Variance plete Amount June 30, 2016 Rest of Year Year End (Over)/Under Trails - Overlay paving 18,000 14,481 2,358 16,839 1,161 Complete July Protective clothing/gear 30,000 4,198 25,802 30,000 - Technology Plan - Hardware 50,000 19,556 30,444 50,000 - In Progress RCMP Security 50,000 3,245 46,755 50,000 - In Progress Replace photocopiers / printers 20,000 20,000 20,000 - Software Upgrade - Microsoft 55,000 55,000 55,000-4th Quarter Bus Shelters 21,000 21,000 21,000 - Ordered 2 Accessibility Improvements 10, ,160 10,000 - In Progress - Blue Paint Traffic Calming Devices - Two 11,000 11,000 11,000 - Location approved/in Progress Garbage Cans - Streets 14,000 14,000 14,000 - Arrived - needs to be installed Flag Pole Lebourdais Park 8,000 2,845 2,845 5,155 Complete City Hall Accessibility 50,000 15,904 34,096 50,000 - $25,902 spent as of Aug 11th Waterwheel Restoration (partially grant funded) 80, ,546 80,000 - In Progress Landscaping Ernst House 10,560 8,564 1,768 10, Complete July Park - Rebuild Back Stop WFTP Babe Ruth 29,000 29,000 29,000 - Late in the year Dog Park (grant funded - $24,976) 35, ,268 35,680 - On Hold Bear Proof Garbage Containers WFTP 9,800 12,258 12,258 (2,458) Complete - 5 Containers Residential Garbage Containers 50,000 42,000 42,000 8,000 Ordered Victim Services Vehicle 30,000 27,741 27,741 2,259 Complete Video Cameras - Replacement 5,000 5,000 5,000 - Fire - Thermal Imaging Camera 10,000 9,744 9, Ordered Fire - Self Contained Breath Apparatus 250, , ,000 - SCBA ordered cost $178,500, Compressor $49,625 RCMP - Upgrade DCC System 10,000 7,110 7,110 2,890 Done RCMP - Asset Modelling System 5,000 5,000 5,000 - Done - awaiting invoicing City Hall - Roof Repair 8,000 1,687 6,313 8,000 - Done - awaiting invoicing City Hall - Asset Modelling System 13,000 13,000 13,000 - Done - awaiting invoicing City Hall - Emergency Generator Upgrade 22, ,681 22,000 - Getting Quotes Museum - Humidification System 5, ,993 5,000 - Fall Museum - Architectural Design 15,000 15,000 15,000 - In Progress Museum - Mobile Archival Units 28,500 28,500 28,500 - Waiting for architectural design work

6 Capital Review Page 6 of 18 City of Quesnel 2016 Capital Projects Com Project Description Approved Actual Spending Estimate to Variance plete Amount June 30, 2016 Rest of Year Year End (Over)/Under CARRYFORWARDS 2015 Software - Vadim Upgrade 26, ,573 26,966 - In Progress - will be multi year project Park - WFTP Playground 149, , ,964 - In Progress Storm - Jones/Wilson 185, , ,434 (10,215) Complete Storm - WQLS Camera 26, ,621 26,912 - On Hold WQLS - Land Purchases 33,000 30,341 30,341 2,659 Complete TOTAL GENERAL FUND CAPITAL 1,375, ,198 1,019,467 1,365,666 9,935 CAPITAL REINVESTMENT FUND Road Rehab/Paving loc'n TBA - 375, , , ,000 - Britton Road Remaining Retaining Wall at Johnston & Sargent 175,000 1, , ,000 - Design/Layout Complete Britton Road 150, , ,000 - Not Started Sidewalk - Front Street 600 Block West Side 58,485 50, ,485 - Complete July Sidewalk - Barlow Ave/Kinchan 57,773 29,984 25,040 57,773 - Complete July Storm - Baker Drive and English Avenue 473,650 81, , ,650 - In Progress TOTAL CAPITAL REIVNESTMENT FUND 1,289, , ,415 1,289,908 -

7 Capital Review Page 7 of 18 City of Quesnel 2016 Capital Projects Com Project Description Approved Actual Spending Estimate to Variance plete Amount June 30, 2016 Rest of Year Year End (Over)/Under OTHER GRANTS / RESERVES WQLS Phase II Capital Spending 6,504, ,379 5,706,776 6,504,155 - In Progress WQLS Phase 1 156,692 2, , ,692 - In Progress New Public Works Complex - Planning 395,000 28, , ,000 - In Progress Tadam axle sander/plow truck 299, , ,000 (23,000) Ordered, waiting for delivery One ton 4x4 crew cab 38,000 41,962 41,962 (3,962) Half ton 4x4 crew cab 29,000 35,568 35,568 (6,568) Residential Garbage Truck 310, , ,435 (19,435) LED Street Light Project (Carbon Reserve) 75, ,772 75,000 - In Progress Land Purchase (Land Reserve) 55, ,000 Did not Proceed TOTAL OTHER RESERVE/GRANTS CAPITAL 7,861,847 1,234,910 6,601,902 7,859,812 2,035 GAS TAX West Quesnel Roadwork 1,200,000 38,419 1,161,581 1,200,000 - In Progress Soccer - Radiant Heaters (NDIT Grant) 70,000 70,000 70,000 - In Progress Protected Left Turn from Lewis to Anderson ($47 grants) 140,000 7, , ,000 - In Progress Public Washrooms Downtown (Grant & Gas Tax) 150, , ,000 - Design Only Bike Trail Project (50% Gas, 50% Bike Grant) 300, ,000 No Grant Received TOTAL GAS TAX 1,860,000 45,946 1,514,054 1,560, ,000 SEWER FUND Sewer Repairs due to Camera Work 100,000 52,852 58, ,946 (10,946) Complete July - - TOTAL SEWER CAPITAL 100,000 52,852 58, ,946 (10,946)

8 Capital Review Page 8 of 18 City of Quesnel 2016 Capital Projects Com Project Description Approved Actual Spending Estimate to Variance plete Amount June 30, 2016 Rest of Year Year End (Over)/Under WATER FUND Replace Service at 2011 Hwy 97N 18,000 18,000 18,000 - Not Started Hydrant Program 7,500 1,606 5,894 7,500 - Complete - awaiting invoicing Scada Upgrades 45, ,713 45,000 - On Hold Water Main Dragon Hill Reservoir to Sword 221, , ,711 - In Progress Environmental Impact Study to Increase well output of W 110,198 29,034 81, ,198 - In Progress Healy Booster Pumps 45, ,258 45,000 - In Progress Replace Water Main Line Hangars on QRB 150, , ,000 - Not Started Waterline Renewal 80,000 26,041 53,959 80,000 - In Progress Pinecrest Reservoir 250, , ,000 - Not Started North Star Booster Pump 26,000 22,803 22,803 3,197 Complete Two Mile Main Twinning Planning 120, , ,000 - Not Started TOTAL WATER CAPITAL 1,073,410 80, ,700 1,070,213 3,197 AIRPORT FUND Replace International Plow Truck (grant) 235, ,000 Grant not approved Replace and Upgrade Hyundai Loader Tires 14,000 10,064 3,936 14,000 - Tires are here Airport Security Gate Replacement Project (grant) 112, , ,200 - In Progress Asset Manager Implementation 6,000 6,000 6,000 - Done - awaiting invoicing Replace Taxiway Signage 9,500 9,500 9,500 - Ordered Aerodome Instrument Approach Upgrade (grant) 45,000 45,000 45,000 - Done - awaiting invoicing TOTAL AIRPORT CAPITAL 421,700 10, , , ,000 TOTAL CAPITAL ALL FUNDS 13,982,466 2,174,745 11,235,268 13,443, ,221 **Note: Until year end is complete and all allocations for labour and equipment are done, none of the costs listed above are final.

9 CITY OF QUESNEL FSAC; August 23/16 Administration Report Report Date: August 2, 2016 Meeting Date: August 23, 2016 To: From: Subject: Financial Sustainability and Audit Committee Director of Corporate and Financial Services Permissive Exemptions PURPOSE Applications for permissive tax exemptions have been received. The purpose of this report is to seek direction from the Financial Sustainability and Audit Committee on the exemptions and make a recommendation to Council so that staff can draft the bylaws required. SUMMARY There was only one new request for a permissive tax exemption this year. In addition to the one request, a few minor amendments to the City s current permissive bylaw need to be made. Permissive Exemption Bylaws must be adopted before Oct 31. STATUTORY REQUIREMENTS There are three types of property tax exemptions: Statutory Section 220 of the Community Charter describes the list of statutory exemptions. Examples include properties owned by the provincial government, cemeteries, churches (building only), hospitals, etc. These exemptions are mandatory and require no action on the City s part. Permissive Section 224 of the Community Charter provides municipalities with authority to exempt certain lands and/or improvements from municipal property taxation. Examples include land and buildings held by non profit organizations, land surrounding properties that receive statutory exemptions (churches, schools), and athletic clubs. These exemptions are set by Council and require Council to pass a bylaw exempting the properties that they decide should be exempted. Revitalization Section 226 of the Community Charter provides municipalities with authority to exempt certain lands and/or buildings from municipal property taxation for the purpose of encouraging revitalization in the municipality. The City of Quesnel has provided an exemption in this category to West Fraser s sawmill. The exemption is for $600,000 per year for the ten year period of 2007 to This type of exemption applies to municipal taxes only and is intended to encourage investment. COUNCIL POLICY Attached is a copy of Council s current permissive tax exemption policy that was last updated in Page 1 of 3 Permissive Exemptions Page 9 of 18

10 FINANCIAL IMPLICATIONS At this point, before any additions, the value of the City s current permissive tax exemptions is $77,938 or 0.54% of the tax base. This amount falls below the policy limit of 0.625% of the tax base and $78,000 amount noted in the policy. BACKGROUND NEW REQUEST Quesnel Community Living Association owns buildings at Doherty Drive and 464 Racing Drive. Attached is a summary of the purpose and activities of their organization. As per their financial statements, Quesnel Community Living Association receives 94% of their funding from Community Living British Columbia (a provincial Crown Corporation mandated under the Community Living Authority Act which reports to the Ministry of Social Development) with the remaining 6% largely coming from residential rentals and some hall rentals. Finance Recommendation - As per Council s permissive tax exemption policy an exemption will not be granted where there is a contract with or the ability to apply to the Provincial or Federal Government for the provision of specific services, and where that contract covers virtually all of the operating costs of the facility. If a 100% tax exemption were given for these properties the municipal portion of the exemption would be $6,626 for the property on Doherty Drive and $3,218 for the property on Racing Drive. Amendments to Previous Bylaw required: 1. Quesnel Elks Lodge #298 owned a lot at 202 Anderson Drive that is now owned by the City. This property will be removed from the permissive tax exemption bylaw. Any property owned by the City gets an automatic statutory exemption from property taxes. 2. Fraser Village Homes Society owns four senior housing buildings with greenspace around them at Front Street. In order to continue the permissive tax exemption for the 4 th building that does not have a statutory exemption and all the green space around the buildings, BC Assessment has just asked for the language in the bylaw to be clarified a bit. ATTACHMENTS 1. Copy of New Request Quesnel Community Living 2. Copy of Council s Permissive Tax Exemption Policy RECOMMENDATION THAT the Financial Sustainability and Audit Committee recommends to Council that no permissive tax exemption be given to the Quesnel Community Living Association as per Council s policy on permissive tax exemptions that an exemption will not be granted where there is a contract with or the ability to apply to the Provincial or Federal Government for the provision of specific services, and where that contract covers virtually all of the operating costs of the facility. Page 2 of 3 Permissive Exemptions Page 10 of 18

11 THAT the Financial Sustainability and Audit Committee recommends to Council that staff prepare an amendment bylaw for permissive tax exemptions to: 1. Remove the lot on Anderson now owned by the City of Quesnel 2. Adjust the language on the permissive exemption for the Fraser Village Homes Society to make the exemption clearer (no change to the actual exemption). Page 3 of 3 Permissive Exemptions Page 11 of 18

12 Permissive Exemptions Page 12 of 18

13 CITY OF QUESNEL COUNCIL-COMMUNITY RELATIONS PERMISSIVE PROPERTY TAX EXEMPTION CCR-12 EFFECTIVE: April 28, 2015 AUTHORIZED BY: Council RESOLUTION: REPLACES: CCR-12 (2013) PURPOSE: This policy is intended to provide guidance in the processing of applications for exemption from property taxes pursuant to Sections of the Community Charter. There are three principal areas of concern: - whether or not the City is indirectly subsidizing activities or facilities that are not its responsibility, or - whether the agencies that are in receipt of tax exemptions require such exemptions, or - whether the agencies that are in receipt of tax exemptions are providing a benefit to the City as a whole. Exemptions provided for in Sections 224 of the Community Charter are at the discretion of Council and this policy is intended to establish general principles. SUMMARY: 1. Exemptions under Section 224 are permissive. There is no obligation to give the exemption and these cannot be granted by Council if the owner does not qualify under the Community Charter. 2. Section 224 requires that the exemption be granted by bylaw prior to October 31 of the year preceding the year of exemption. 3. Non Profit exemptions will be renewed on a four year cycle. Public Worship exemptions will be renewed on a ten year cycle. Once a decision has been made to exempt or not exempt a property, it will not be reviewed again during the current cycle. Once granted, tax exemptions are likely to continue in effect so long as the property remains eligible under Sections 224 and the applicant s condition and purpose is unchanged. 4. All exemptions are to be reviewed by the Administration each year to ensure that, based on the most current available information, they continue to be qualified for the exemption and a report will be forwarded to Council. 5. The municipal tax portion of Permissive Tax Exemptions will be limited to $78,000 or 0.625% of the total property tax levy. The value of tax exemptions should be taken into consideration when Page 1 of 6 Permissive Exemptions Page 13 of 18

14 the annual grants to organizations are considered, recognizing that each tax exemption is similar in effect to a cash grant. 6. Application for tax exemptions (in respect of property not previously exempted) should be referred to the Financial Sustainability and Audit Committee as soon as they are received by the Administration, so that the committee may have adequate time to consider the exemption. When such exemptions are referred to the committee the application should be accompanied by an estimate of the value of the exemption from the Treasurer, along with all the required documents from the applicant as noted. 7. The Financial Sustainability and Audit Committee will make recommendations to Council on the requested permissive exemptions. PUBLIC WORSHIP: 1. Section 220 (1)(h) of the Community Charter provides Provincial tax exemption for buildings and land used as public worship, with Section 224(2)(f) permits Council to consider for exemption any hall that Council considers necessary to the church plus an area of land surrounding the exempted building(s) as determined by Council. 2. Section 220(1)(g) provides for Council permissive exemption for land or improvements used by a church as tenant or licensee for the purposes of public worship or for the purposes of a church hall which the Council considers necessary for the church. 3. Council permissive exemptions will be limited to that land which is required for off-street parking, plus ancillary lands required to make a reasonably shaped parcel. Exemptions will not be granted for land held for future development and land greater than normally required for buffer zones. HOSPITAL/PRIVATE SCHOOLS/SENIORS HOMES: 1. Section 220(1) provides Provincial tax exemption for hospital buildings, private schools, and homes for elderly citizens building prior to April, 1974; while Section 224(2)(h) provides municipal exemption for any area of land surrounding the buildings provincially exempted, which Council may exempt. 2. Council permissive exemptions will be limited to that land which is required for off-street parking, plus ancillary lands required to make a reasonably shaped parcel. Exemptions will not be granted for land held for future development and land greater than normally required for buffer zones. 3. The general conditions for tax exemptions apply to these properties. RECREATION/ATHLETIC FACILITIES: 1. Section 224(2)(i) provides for Council permissive exemption for land or improvements owned or held by an athletic or service club or association and used principally as a public park or recreation ground or for public athletic or recreational purposes. Page 2 of 6 Permissive Exemptions Page 14 of 18

15 2. The exemption may apply to the whole or a part of the taxable assessed value of land, improvements or both with an increase in exemption status if, in the opinion of Council, the club or association contribute significantly toward community fitness through its activities. 3. The general conditions for tax exemptions apply to these properties. PRIVATE HOSPITAL/COMMUNITY CARE FACILITY: 1. Section 224(2)(j) provides for Council permissive exemption for land or improvements owned or held by a person or organization and operated as a private hospital licensed under the Provincial Hospital Act, or as a licensed community care facility or registered assisted living residence under the Community Care and Assisted Living Act. 2. The general conditions for tax exemption apply to these properties. ELDERLY CITIZENS HOUSING: 1. Section 224(2)(k) provides for Council permissive exemption for land or improvements, in whole or in part, for which a grant has been made after March 31, 1974 under the Housing Construction (Elderly Citizens) Act. 2. The general conditions for tax exemption apply to these properties. AID TO CHARITABLE OR PHILANTHROPIC ORGANIZATIONS: 1. Section 224(2)(a) provides for Council permissive exemption for land or improvements not being operated for profit or gain and owned by a charitable or philanthropic or other not-for-profit organizations that the Council considers are used for a purpose that is directly related to the purposes of the corporation. 2. Section 224(2)(b) provides for Council permissive exemption for land or improvements that are owned or held by the municipality or other local authority and which the Council considers are used for the purpose of the local authority. 3. Section 224(2)(c) provides for Council permissive exemption for land or improvements that Council considers would otherwise qualify for provincial exemption were it not for a secondary use. 4. The objective is to provide assistance to community organizations which provide services over and above those which are normally provided by the provincial ministries concerned with health and welfare, and which depend in large part upon charitable contributions to sustain their operations. 5. Exemptions may be granted to such groups property, subject to the following: (a) the organization can show a financial need for exemption, (b) the organization can establish that it is a charitable or philanthropic organization, Page 3 of 6 Permissive Exemptions Page 15 of 18

16 (c) the property is not operated for profit or gain and is used exclusively for charitable or philanthropic purposes, (d) the organization owns the property, (e) the organization can show that it is in receipt of public funding. 6. An exemption will not be granted where there is a contract with or the ability to apply to the Provincial or Federal Government for the provision of specific services, and where that contract covers virtually all of the operating costs of the facility, except for developed property owned and actively operated by the following non-profit groups: - Quesnel Women s Resource Centre Society - Amata Transition House Society - Quesnel Tillicum Society - Quesnel & District Child Development Centre Association, until Council deems otherwise. 7. Exemptions will not be granted where the service is one which is normally provided by the Provincial or Federal Government (homes for handicapped or infirm, including the mentally challenged, homes for juveniles who have been judged delinquent or who are deemed to be in need of custody or rehabilitation services, etc.). Each instance will be reviewed to determine whether or not the application for exemption arises as a result of the privatization or regionalization program. 8. Where there is a mix of uses, some of which are supported by the Province and some which are supported by private philanthropy, Council may determine the proportion of the assessment which is to be tax-exempt. 9. The general conditions for tax exemptions apply to these properties. LAND FOR DEVELOPMENT OF AFFORDABLE HOUSING: 1. Council will consider permissive tax exemptions for land held by non-profit groups for the development of affordable housing on a case by case basis. GENERAL CONDITIONS: 1. An exemption shall only be granted where the organization can show a financial need for the exemption. Determination of financial need would involve showing that lack of tax exemption would seriously impair services to the community at large or would impose significant hardship on the users of the facilities (such as user fees which would be substantially higher than those charged for other activities involving similar levels of supervision, instruction or capital investment). 2. The purpose of the use to be exempted must be one which, in the opinion of Council, will result in an improvement in the quality of life within the community. 3. Any facilities for which exemption is being requested must be smoke-free, whether being used by members or rented out to other groups. 4. Leased facilities will not be considered for permissive exemptions. 5. The facility must be accessible by the public, but this is not to be taken as preventing: Page 4 of 6 Permissive Exemptions Page 16 of 18

17 - the imposition of admission fees or membership fees, provided that membership is available to any member of the community, without limitation as to numbers, and provided that admission is available to any member of the community (subject to limitations of the facility s capacity); and - the granting of preferential rates or times of use for members as opposed to non-members. 6. The activities carried out on the land or in the facility must be of a type available to a significant portion of the general public. 7. The operators must be able to demonstrate that they actively seek to involve the general public in the facility s use, and in particular that they encourage youth activities (where appropriate). 8. The facility must not be operated for profit. 9. Where a facility competes directly with privately-owned facilities providing a similar service, Council may exempt only a portion of the assessed value of the land and/or improvements. In considering the proportion to be exempted, Council shall take into account the proportion of the use which is granted at nominal charges without charge to community groups (and especially youth organizations). 10. Where the facility contains service areas such as food services, licensed premises, retail facilities or concession stands operated either by the owner or tenants, the proportion of the assessed values of the improvement eligible for exemption shall be determined by Council. The objective is to subject such service areas to taxation. 11. If all or part of the facility is leased to commercial ventures, or to organizations not eligible for exemption, the proportion of the assessed values of the improvement eligible for exemption shall be determined by Council. The objective is to subject those portions of the facility to taxation. 12. Where the activity requires significant amounts of land and where such land is deemed by Council to provide a desirable greenbelt for the enjoyment of the general public, exemption may be granted for the land only. INFORMATION REQUIREMENTS: The information to be provided on the form attached as Schedule A by applicants may vary depending upon the nature of the applicant and may include: - financial statements, - a statement of the likely impact if tax exemption is not granted, - a statement as to whether the facility is to be open to the public or to members only, and whether membership (if required) is available to any member of the community, - details of any areas of structures in which smoking is permitted - information on how the organization seeks to involve members of the public and how the organization encourages youth activities, - an explanation of any retail facilities (such as food, liquor, equipment, sales, etc.) and details of the operating arrangements, - information on any leases of the property for commercial or private purposes, - information on the extent of use of the property and the types of users, - information on any contracts with the Province for provision of services. Page 5 of 6 Permissive Exemptions Page 17 of 18

18 Council reserves the right to request any additional information which may be required to enable Council to determine if property tax exemption is warranted. APPLICATION DEADLINE: All new applications are to be received by City Hall no later than July 31, in the year prior to the year in which exemption is being requested. Page 6 of 6 Permissive Exemptions Page 18 of 18