CITY OF POWELL RIVER SPECIAL COUNCIL MEETING TUESDAY, MAY 10, 2016 (3:00 PM) COUNCIL CHAMBERS, CITY HALL AGENDA

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1 File CITY OF POWELL RIVER SPECIAL COUNCIL MEETING TUESDAY, MAY 10, 2016 (3:00 PM) COUNCIL CHAMBERS, CITY HALL AGENDA 1. OPENING OF COUNCIL MEETING/ANNOUNCEMENTS 2. ADOPTION OF AGENDA 3. ADOPTION OF MINUTES 4. DELEGATIONS 5. CORRESPONDENCE 6. COMMITTEE REPORTS 7. COMMITTEE RECOMMENDATIONS 8. OTHER REPORTS 9. BYLAWS 9.1 Five-Year Financial Plan Bylaw 2441, 2016 A bylaw for the City of Powell River Five-Year Financial Plan for the period 2016 to 2020 inclusive 3-14 Recommendation: That Five-Year Financial Plan Bylaw Bylaw 2441, 2016 be adopted. 9.2 Annual Property Tax Rates Bylaw 2426, 2016 A bylaw for the levying of property tax rates for City, Regional District, and Regional Hospital District purposes for the year

2 Recommendation: That Annual Property Tax Rates Bylaw 2426, 2016 be adopted. 10. UNFINISHED BUSINESS 11. NEW BUSINESS 12. NOTICES OF MOTION 13. MOTION TO GO IN CAMERA 14. QUESTIONS 15. ADJOURNMENT Page 2 of 22

3 CITY OF POWELL RIVER BYLAW 2441, 2016 A bylaw for the City of Powell River Five-Year Financial Plan for the period 2016 to 2020 inclusive WHEREAS the Community Charter requires the City to have a five-year financial plan adopted annually, by bylaw; NOW THEREFORE, the Council of City of Powell River, in open meeting assembled, hereby enacts as follows: TITLE 1. This Bylaw may be cited as "Five-Year Financial Plan Bylaw 2441, 2016". FINANCIAL PLAN 2. Schedules "A", B and C attached to and forming part of this bylaw are the Five-Year Financial Plan of the City of Powell River for the years 2016 to 2020 inclusive. REPEAL 3. Five-Year Financial Plan Bylaw 2423, 2015 is repealed. PUBLIC NOTICE GIVEN the 29th day of April, and the 4 th and 6 th of May, READ a first time the 5 th day of May, READ a second time the 5 th day of May, READ a third time the 5 th day of May, ADOPTED the day of,. David J. Formosa, Mayor Marie Claxton, City Clerk Page 3 of 22

4 Five-Year Financial Plan Bylaw 2441, 2016 Page 2 of 8 SCHEDULE A Consolidated Financial Plan City of Powell River Five Year Financial Plan Operating Budget Revenues Tax Levies $ 21,763,370 $ 21,763,370 $ 21,763,370 $ 21,763,370 $ 22,074,498 Payments in Lieu of Tax 723, , , , ,767 Transfers to other governments (6,206,963) (6,206,963) (6,206,963) (6,206,963) (6,206,963) Net Taxes for municipal purposes $ 16,279,801 16,287,035 16,294,341 16,301,721 16,620,302 Sale of Services 4,795,767 5,082,969 5,179,790 5,300,384 5,517,507 Other Revenue 942, , , , ,872 Utility Service Revenues 5,175,938 5,251,940 5,329,080 5,407,484 5,462,303 Government Grants 1,461,325 5,405,214 1,105,750 1,106,000 19,177,065 Interest and Investment Income 1,272, , , , ,093 13,648,049 17,569,010 13,480,086 13,646,564 32,008,840 Operating Revenues $ 29,927,850 $ 33,856,045 $ 29,774,427 $ 29,948,285 $ 48,629,142 Operating Expenses General Government 8,334,643 6,601,757 6,601,757 6,601,757 6,634,766 Transportation Services 4,573,914 4,162,021 4,168,859 4,168,859 4,189,703 Environmental and Public Health 466, , , , ,296 Protective Services 6,274,344 5,896,575 5,925,019 5,967,899 6,012,139 Utility Services 3,675,929 3,352,108 3,327,529 3,375,193 3,423,570 Parks, Recreation and Cultural 4,185,685 4,046,896 4,046,896 4,046,895 4,068,008 Fiscal Services Debt Charges 594, , , , ,740 Amortization 4,475,000 4,519,750 4,745,738 4,793,195 5,032,855 Operating Expenses $ 32,580,071 $ 29,758,909 $ 29,977,569 $ 30,097,537 $ 30,489,077 Annual Operating Surplus (Deficit) $ (2,652,221) $ 4,097,136 $ (203,142) $ (149,252) $ 18,140,065 Net Financial Position Add: Amortization included as expense 4,475,000 4,519,750 4,745,738 4,793,195 5,032,855 Less: Capital Acquisitions 17,362,349 9,919,873 2,281,230 8,385,500 25,769,500 Net Capital Transactions (12,887,349) (5,400,123) 2,464,508 (3,592,305) (20,736,645) Surplus (Deficit) after Capital Transactions (15,539,570) (1,302,987) 2,261,366 (3,741,557) (2,596,580) Funding Reserves and Surplus Add: Transfers from reserves/surplus 10,716,948 5,710,223 2,225,550 2,345,500 7,759,500 Less: Transfers to reserves/surplus 4,131,124 3,511,723 3,593,534 3,811,291 4,305,956 Net Funding to (from) Reserves/Surplus 6,585,824 2,198,500 (1,367,984) (1,465,791) 3,453,544 Surplus (Deficit) after Transfers $ (8,953,746) $ 895,513 $ 893,382 $ (5,207,348) $ 856,964 Funding Debt Add: New Borrowing 10,357,478 6,000,000 Less: Principal Payments 1,403, , , , ,964 Debt Funding Increase (decrease) 8,953,746 (895,513) (893,382) 5,207,348 (856,964) Budget Surplus (Deficit) $ $ $ $ $ Page 4 of 22

5 Five-Year Financial Plan Bylaw 2441, 2016 Page 3 of 8 In accordance with Section 165(3.1) of the Community Charter, the City of Powell River is required to include in the Five-Year Financial Plan, objectives and policies regarding each of the following: 1. The proportion of total revenue that comes from each of the funding sourcess described in Section 165(7) of the Community Charter; 2. The distribution of property taxes among the property classes, and 3. The use of permissive tax exemptions. Sources of Revenue The pie chart below depicts the funding sources this fiscal year. SCHEDULE B Revenue Plan Objectives and Policies proportionate share of revenue to be received from the various Sources of Revenue Government Grants 5% Interestt and Investment Income 4% Utility Service Revenue 17% Other Revenue 3% Taxes for municipal purposes 54% Sale of Services 17% Property tax represents the greatest portion of own source revenue. Property taxation offers a number of advantages, for example, it is simple to administer and it is fairly easy to understand. It offers a stable and reliable source of revenue for services that are difficult to fund on a userbasis. pay basis and supports other services that are unable to be fully funded on a user pay These services include; general administration, fire protection, police services, bylaw enforcement, library, parks, recreation and culture and street lighting. Page 5 of 22

6 Five-Year Financial Plan Bylaw 2441, 2016 Page 4 of 8 Schedule B continued Property owners in Powell River should be treated in a fair and consistent manner. The tax calculation methodology must be consistent, transparent and understandable. Many services can be measured and charged on a user-pay basis, such as water and sewer usage, building permits, business licenses, and the sale of services. Government grants are a funding source that the City does not rely on for its normal operations. When projects meet the eligibility criteria for grant funding, the City will apply and await the outcome before proceeding. Property Tax Revenue by Class (8) Recreation/Non Profit 0% (7) Managed Forest Land 0% Property Tax Revenue % by Class (9) Farm 0% Payment in Lieu of Taxes (PILT) 4% (6) Business/Other 17% (5) Light Industry 1% (4) Major Industry 17% (1) Residential 61% (2) Utilities 0% Page 6 of 22

7 Five-Year Financial Plan Bylaw 2441, 2016 Page 5 of 8 Permissive Tax Exemptions Schedule B continued City of Powell River Permissive Tax Exemption Policy 214 guides the administration and approval of permissive tax exemptions. Some of the eligibility criteria for permissive tax exemptions that are outlined in the policy include the following: The tax exemption must demonstrate benefit to the community and residents of the City by enhancing the quality of life (economically, socially and culturally) within the community. The goals, policies and principles of the organization receiving the exemption must not be inconsistent or in conflict with those of the City. The organization receiving the exemption must be a registered non-profit society, as the support of the City will not be provided for commercial and private gain. Permissive tax exemptions will be considered in conjunction with: (a) other assistance being provided by the City; (b) the amount of revenue that the City will lose if the exemption is granted; and (c) where the operating purpose or service is regional, the City may accept a share, rather than all, of the burden of a tax exemption. The City will continue to provide permissive tax exemptions to non-profit societies. The City may expand its offering of permissive tax exemptions to include revitalization tax exemptions targeted at encouraging economic development and growth. Page 7 of 22

8 Five-Year Financial Plan Bylaw 2441, 2016 Page 6 of 8 SCHEDULE C Transfers from and to Reserves City of Powell River Five Year Financial Plan Transfer from Reserves & Surplus Budget Budget Budget Budget Budget General Fund Funds Equipment Reserve $ 532,000 $ 917,523 $ 518,000 $ 594,500 $ 594,500 Prior Year Surplus General Fund 1,880, ,000 Community Forest Reserve 1,294,700 20, , ,000 Land Sale Reserve 291,611 Gas Tax Reserve 762, , , , ,000 Building Maintenance Reserve 34, ,000 10, ,000 4,795,022 2,084,523 1,265,000 1,563,500 1,059,500 Accounts Barge and Tanker Reserve 75,000 50,000 Computer Reserve 41,000 55,350 40,350 47,000 Future Expenditures Reserve 2,886,175 Health and Safety Reserve 5,000 5,000 5,000 5,000 5,000 Insurance Claim Reserve 207,080 Legal Reserve 599 North Harbour Reserve 20,000 Smoke Alarm Reserve Theatre Equipment Reserve 8,000 Willingdon Campsite Reserve 65,000 3,308, ,700 45,550 52,000 5,000 $ 8,103,226 $ 2,195,223 $ 1,310,550 $ 1,615,500 $ 1,064,500 Sewer Fund Accounts Surplus (400,051) Future Expenditures 722,918 Treatment Plant Equipment Reserve 100,000 Infrastructure Replacement Reserve 500,000 2,825, , ,000 6,325,000 $ 922,867 $ 2,825,000 $ 425,000 $ 325,000 $ 6,325,000 Water Fund Accounts Suplus 131,750 Future Expenditures Reserve 934,105 Infrasructure Replacement Reserve 625, , , , ,000 $ 1,690,855 $ 690,000 $ 490,000 $ 405,000 $ 370,000 $ 10,716,948 $ 5,710,223 $ 2,225,550 $ 2,345,500 $ 7,759,500 Page 8 of 22

9 Five-Year Financial Plan Bylaw 2441, 2016 Page 7 of 8 Schedule C continued City of Powell River Five Year Financial Plan Transfer to Reserves & Surplus Budget Budget Budget Budget Budget General Fund Funds Building Maintenance Reserve $ 94,035 $ 105,000 $ 150,000 $ 240,000 $ 170,000 Community Forest Reserve 1,000, , , , ,000 Community Works Reserve 598, , , , ,915 Equipment Replacement Reserve 733, , , , ,000 General Reserve 5,500 2,000 1, ,000 3,000 Land Sale Reserve 4,200 4,200 4,230 4,240 4,250 Park Land Reserve 1,555 1,570 1,580 1,585 2,436,284 2,231,195 2,109,582 2,336,735 2,069,750 Accounts Airport Reserve 3,091 6,400 6,500 6,700 6,900 Barge and Tanker Wharf Reserve 3,000 3,000 3,010 3,020 3,030 Computer Reserve 50,000 55,350 50,000 54,500 54,500 Cranberry Lake Sanctuary Reserve Election Reserve 7,500 7,600 7,700 7,800 7,500 Field User Fee Reserve 10,000 9,500 9,900 10,000 11,000 Fire Hall Reserve Health and Safety Reserve 18,379 18,566 14,000 14,000 14,000 Heritage Preservation Project Reserve Hwy 101 Reserve 2,140 2,200 2,210 2,220 2,230 Infrastructure Replacement Reserve 510,877 Insurance Claim Reserve 2,200 2,300 2,790 2,850 2,850 Legal Reserve North Harbour Reserve 96,766 67,000 69,950 72,500 65,000 Smoke Alarm Reserve Theatre Equipment Reserve 2,000 2,100 2,150 2,200 2,300 Transfer Site Clean Up Reserve Willingdon Campsite Reserve 5,500 5,550 2,000 2,500 3,000 $ 201,115 $ 180,109 $ 170,761 $ 178,843 $ 683,748 $ 2,637,399 $ 2,411,304 $ 2,280,343 $ 2,515,578 $ 2,753,498 Page 9 of 22

10 Five-Year Financial Plan Bylaw 2441, 2016 Page 8 of 8 Schedule C continued City of Powell River Five Year Financial Plan Transfer to Reserves & Surplus Budget Budget Budget Budget Budget continued Sewer Fund Funds Equipment Replacement Reserve $ 40,000 $ 40,600 $ 40,600 $ 40,600 $ 40,600 Building Maintenance Reserve 7,500 7,613 7,613 7,613 7,613 47,500 48,213 48,213 48,213 48,213 Accounts Membranes Reserve 9,000 10,000 10,000 10,000 10,000 Treatment Plant Equipment Reserve 57,075 57,075 Wildwood L. Biosolids Removal Reserve 20,000 20,100 20,200 20,300 20,400 Infrastructure Replacement Reserve 711, , , , , , , , , ,221 $ 845,498 $ 838,949 $ 784,349 $ 737,263 $ 903,434 Water Fund Funds Equipment Replacement Reserve 30,000 30,450 30,450 30,450 30,450 Building Maintenance Reserve 5,000 5,075 5,075 5,075 5,075 35,000 35,525 35,525 35,525 35,525 Accounts Infrasructure Replacement Reserve 613, , , , , , , , , ,499 $ 648,227 $ 261,470 $ 528,842 $ 558,450 $ 649,024 Transfers to Reserves and Surplus $ 4,131,124 $ 3,511,723 $ 3,593,534 $ 3,811,291 $ 4,305,956 Page 10 of 22

11 CITY OF POWELL RIVER REPORT File No DATE: May 3, 2016 TO: FROM: SUBJECT: Mayor and Council Corien Becker, Interim Chief Financial Officer Five Year Financial Plan Bylaw RECOMMENDATION: That the Five Year Financial Plan Bylaw 2441, 2016 be considered for three readings and adoption. CHIEF ADMINISTRATIVE OFFICER S COMMENTS: I concur with the recommendation. Mac Fraser, CAO EXECUTIVE SUMMARY This report presents an amended 2016 Five-Year Financial Plan bylaw for consideration. The Five- Year Financial Plan Bylaw 2423, 2015 will be repealed with this bylaw. ORIGIN/PURPOSE: The City must adopt an annual Five-Year Financial Plan Bylaw prior to May 15 each year. Although the 2016 Five-Year Financial Plan Bylaw 2423, 2015 was adopted in December 2015, a few changes have been identified that should be considered. BACKGROUND: Subsequent to adopting the 2016 Five-Year Financial Plan Bylaw 2423, 2015 a number of budget changes were identified. These include projects that were budgeted in 2015 that were not completed and have carried over into 2016, correcting a few calculation errors in the spreadsheet, and adding a few critical projects that were not included in the 2016 Bylaw which require Council's consideration and approval before any spending is authorized. STRATEGIC PRIORITY: The annual financial plan allocates resources to achieve Council s strategic priorities and operating goals. A sound financial plan ensures that the community continues to foster economic resiliency, community vibrancy and sustainability. EXISTING POLICY: Financial Plan Bylaw 2423, 2015 approved in December provides the policy direction for the 2016 Financial Plan. In order to address the issues identified, the bylaw requires amendment. Page 11 of 22

12 Five-Year Financial Plan Bylaw 2441, of 4 May 3, 2016 ANALYSIS AND IMPACT: Attachment #1 provides a summary of the proposed changes for the financial plan bylaw. The bylaw includes the operating, capital, and financing amendments that are needed for the 2016 budget. Attachment #2 is the draft bylaw for consideration. As the bylaw is not proposing any changes to the amount of municipal taxes, this bylaw could be considered at any time in Staff propose considering the amendment at the same time as the tax rates bylaw in order to include the revised budget figures in the financial statements that will be issued for FINANCIAL IMPACT: The changes are summarized as follows: Reduced revenues by $282,559 - most significant removed revenue for in-kind grants; Increased operating expenses by $1.74M - (PRCF Community Grants of $900,000, Library Furniture & Equipment $680,000, carryforward projects, and other adjustments); Increased capital acquisitions by $5.94M - ($4.22M library, $920k strategic land acquisitions, other carry forward projects, plus miscellaneous other projects); Draw of $2.26M from reserves and surplus; Additional debt of $5.7M for Library, and interim financing for land (from PRWDC). See attachments for additional detail. STAFF TIME/INPUT: Approximately 30 hours were needed to collect information, verify and reconcile the adjustments, prepare the bylaw, and finalize this report. PUBLIC CONSULTATION: In November and December 2016, public consultation was conducted for the 2016 Five-Year Financial Plan. Additional public consultation must be conducted prior to adopting this budget amendment. Notices have been put into the newspaper advising that Council may consider amendments to the Five-Year Financial Plan Bylaw on May 5, and that any comments are to be directed to the City before May 9 in order for Council to consider the comments prior to considering adoption of the Bylaw. OPTIONS: 1. Approve the amended Bylaw as proposed. 2. Alter the proposed Bylaw to remove or add budget items. 3. Do not amend the Bylaw. Respectfully submitted, Corien Becker, BComm, CPA, CGA Interim Chief Financial Officer CB Page 12 of 22

13 Five-Year Financial Plan Bylaw 2441, of 4 May 3, 2016 Attachment #1 City of Powell River Budget changes Carryforward / Corrections New Budget Total Operations Revenue Recreation Fees & Charges $ (250,000) (250,000) - $ (250,000) Province of BC Grant (42,559) Grant - Province $ 10,000 (42,559) 10,000 (32,559) Total Change in Revenue $ (282,559) Expenses General Government Council Grants (internal transfer) (250,000) Library - grant for equipment / furniture 680,000 Projects from Capital in Bylaw 14,000 Carry forward Mtce & Special Ops 146,209 Insurance / Legal Fees 25,000 HR Wages 45,000 PRCF Community Grants 900, , ,000 1,560,209 Transportation Services Carry forward Mtce & Special Ops 193,199 Projects from Capital in Bylaw 134,500 McGuffy Creek Foot Bridge Repairs 100, , , ,699 Protective Services PEP (error in Dec spreadsheet) (7,976) Carry forward Mtce & Special Ops 6,647 IAFF - Retro Pay expensed in 2015 (120,000) (121,329) - (121,329) Utility Services Sewer Maintenance & Projects Correction (400,051) Sewer Carry forward Mtce & Special Ops (51,002) Water Maintenance & Projects Correction 131,750 Water Carry forward Mtce & Special Ops (2,410) Water Potable Water Feasibility Study 15,000 (321,713) 15,000 (306,713) Parks, Recreation & Culture Parks (error in Dec spreadsheet) 175,501 Projects from Capital in Bylaw 8,000 Carry forward Mtce & Special Ops (3,282) 180, ,219 Total Change to Operating Expenses 1,740,085 Net Change to Operating Deficit $ (2,022,644) Page 13 of 22

14 Five-Year Financial Plan Bylaw 2441, of 4 May 3, 2016 Attachment #1 - continued City of Powell River Budget changes Carryforward / Corrections New Budget Total Capital Acquisitions Prior Year Carry forwards Library Building & Reno's & Equipment $ 4,220,000 Special projects moved to operating (156,500) Misc Carry Forward Adjustments (41,450) Bike Lanes (budget reduced) (42,559) Rebudget - GIS, Software & Server 188,985 Carryforward Contingency 300,000 Water - Carry Forward Adjustments (27,663) Sewer - Carry Forward Adjustments 2,275 4,443,088 New Capital Sign at Powell River Track 10,000 Park At Marine & Alberni 124,700 Domestic Hot Water system 140,100 Strategic Land Acquisitions 920,000 WWTP Land Acquisition 200,000 WWTP Equipment 100,000 1,494,800 Total Capital $ 5,937,888 Surplus / Reserves Transfers Reserve for Future Expenditure 327, ,029 Surplus 181,225 15, ,780 PR Community Forest Reserve 1,034,700 1,034,700 Community Works Fund (220,000) 115,255 (104,745) Other Reserves 804, ,290 Total change from Reserves / Surplus 288,254 1,969,800 $ 2,258,054 Borrowing MFA Debt 202,478 Debenture Debt 3,500,000 Short Term Debt 1,400,000 Short Term Debt 600,000 Total change from Borrowing 5,102, ,000 $ 5,702,478 Budget Changes Balanced $ - Page 14 of 22

15 CITY OF POWELL RIVER BYLAW 2426, 2015 A bylaw for the levying of property tax rates for City, Regional District, and Regional Hospital District purposes for the year 2016 The Council of the City of Powell River, in open meeting assembled, enacts as follows: 1. This Bylaw may be cited as Annual Property Tax Rates Bylaw 2426, 2016". 2. The following property tax rates are imposed and levied for the year 2016: 1. For the purposes of the City of Powell River: a) on the assessed value of land and improvements taxable for general municipal purposes rates appearing in Column A of Schedule "A" attached to and forming a part of this bylaw; and b) on each parcel of taxable Class 1 Residential i) a Flat Rate Tax of $ on each parcel with improvements; or ii) a Flat Rate Tax of $87.00 on each parcel without improvements (vacant land only); 2. For the purposes of the Powell River Regional District on the assessed value of land and improvements taxable for other purposes rates appearing in Column B of Schedule A attached to and forming a part of this bylaw; 3. For the purposes of the Powell River Regional Hospital District on the assessed value of land and improvements taxable for other purposes rates appearing in Column C of Schedule "A" attached to and forming a part of this bylaw. READ A FIRST TIME the 5 th day of May, READ A SECOND TIME the 5 th day of May, READ A THIRD TIME the 5 th day of May, ADOPTED the day of May, David J. Formosa, Mayor Marie Claxton, City Clerk Page 15 of 22

16 2016 Property Tax Rates Bylaw 2426, 2016 Page 2 of 2 City of Powell River Annual Tax Rates Bylaw 2426, 2016 Schedule "A" 2016 PROPERTY TAX RATES (dollars of property tax per $1000 of taxable assessed value) PROPERTY CLASS A B C City of Powell River Powell River Powell River General Regional Regional Municipal District Hospital District 1 Residential Utilities Major Industry Light Industry Business/Other Managed Forest Land Recreation/Non-Profit Farm Page 16 of 22

17 CITY OF POWELL RIVER REPORT File No DATE: May 3, 2016 TO: FROM: Mayor and Council Corien Becker, Interim Chief Financial Officer SUBJECT: Annual Property Tax Rates Bylaw 2426, 2016 RECOMMENDATION: That the Annual Property Tax Rates Bylaw 2426, 2016 be considered for three readings and adoption. CHIEF ADMINISTRATIVE OFFICER S COMMENTS: I concur with the recommendation. Mac Fraser, CAO EXECUTIVE SUMMARY: This report presents the proposed Property Tax Rates Bylaw for consideration. ORIGIN/PURPOSE: In order to levy the 2016 property tax charges, the City must adopt the 2016 Property Tax Rate Bylaw prior to the legislated date of May 15. BACKGROUND: The City adopted the 2016 Financial Plan in December of 2015, setting out the amount to be collected from property taxes, as well as the proportion of taxes from the different property classes. In April 2016, the City received confirmation of the property assessments for each class, and the amounts to be collected for the Regional District, and the Regional Hospital District. This bylaw considers this information and establishes the rates necessary to collect the 2016 property taxes. STRATEGIC PRIORITY: The annual financial plan allocates financial resources to achieve Council s strategic priorities. The plan also considers the allocation of the property taxes among the different property classes. The financial plan sets the amount of taxes needed to achieve the City's strategic and operating goals while considering the communities ability to pay taxes, in order to ensure that the community continues to foster economic resiliency, community vibrancy and sustainability. Page 17 of 22

18 2016 Property Tax Rates Bylaw 2426, of 6 May 3, 2016 EXISTING POLICY: Financial Plan Bylaw 2423, 2015 and the proposed Financial Plan Bylaw 2441, 2016 both provide the policy direction for the development of the 2016 Tax Rates Bylaw. Schedule A of the Bylaws specifies a Tax Levy of $16,279,801 inclusive of Payments in Lieu of Taxes. Schedule B of the Bylaw specifies the following distribution among the property assessment classes: Residential 61%, Major Industry 17%, Light Industry 1%, Business/Other 17%, Payments in Lieu of Taxes 4%, and Utilities, Managed Forest Lands, and Recreation /Non Profit each with less than 1% of the taxes. ANALYSIS AND IMPACT: The Tax Rate Bylaw sets the tax rates for properties in each property class and provides the legislative mechanism to collect the taxation revenues specified in the Five-Year Financial Plan. The rates bylaw also sets the rates for the Regional District and the Regional Hospital District. The attached summary report includes the rates set by other taxing authorities (BC Assessment, Municipal Finance Authority, School - yet to be received) to provide information on the total property taxes collected by the City. The rates are the amount of tax to be collected based on $1,000 of assessed value. Note that the percentage of taxes is slightly different than the projected allocation due to rounding. The proposed rates for municipal purposes are summarized as follows: Class Rate Assessment Taxes % of Taxes Residential $1,251,642,262 $ 8,023, % Residential Flat Tax - 1,845, % Utilities ,900 35,852 <1.0% Major Industry ,452,100 4,614, % Tax Revitalization Bylaw ,452,100-1,864, % Light Industry ,966,200 84, % Business / Other ,492,000 2,767, % Managed Forest Lands ,400 14,778 <1.0% Recreation / Non-profit ,335,000 34,240 <1.0% Farm , <1.0% Payments in Lieu of Tax - 723, % Total $1,494,131,532 $16,279, % FINANCIAL IMPACT: Property taxes are the primary source of funding to support municipal operations. The city must adopt the property tax rates bylaw prior to May 15, 2016 in order to collect property taxes in STAFF TIME/INPUT: Approximately 3 hours were used to calculate the rates, prepare and finalize this report. Page 18 of 22

19 2016 Property Tax Rates Bylaw 2426, of 6 May 3, 2016 PUBLIC CONSULTATION: Public consultation was conducted for the Five Year Financial Plan that determined the amount of tax to be collected and the allocation among the assessment classes. No additional public consultation has been considered in presenting this information. OPTIONS: 1. Approve the Bylaw as proposed. 2. Amend the Bylaw to provide for a different amount of taxes, which would require a budget bylaw amendment. 3. Amend the Bylaw to provide for a different allocation of taxes among the assessment classes, which would require a budget amendment bylaw. Respectfully submitted, Corien Becker, BComm, CPA, CGA Interim Chief Financial Officer CB Attachments: #1 Property Tax Rates Summary #2 Property Tax Rates Bylaw Page 19 of 22

20 2016 Property Tax Rates Bylaw 2426, of 6 May 3, 2016 Attachment #1 CITY OF POWELL RIVER 2016 PROPERTY TAX RATES SUMMARY (dollars of tax per $1000. of taxable value) PROPERTY CLASS City of Powell River Municipal Purposes Powell River Regional District Powell River Regional Hospital District Municipal Finance Authority BC Assessment Authority School Tax * Total 1 Residential Utilities Major Industry ** Revitalization Tax Exemption Bylaw ** Net Light Industry Business/Other Managed Forest Land Recreation/Non-Profit Farm * School Tax Rate has not been set by Province as of April 28, 2016 ** Revitalization Tax Exemption Program Bylaw 2394, Net tax collected of $2,750,000 per year Sewer Frontage $1.89 Sewer Treatment Frontage $2.20 Sewer User Fee $ Water User Fee $ Annual Garbage User Fee $ Residential Flat Tax per parcel with improvements $ per parcel on vacant land only $ Average Assessment Value $ 229,286 Average Residential Taxation City RD Hospital MFA BCAA Total Tax Levy $1, $ $57.24 $0.05 $12.45 $1, Flat Tax Frontage Utilities (Water, Sewer, Garbarge) Total 2016 $2, $ $57.24 $0.05 $12.45 $2, Average Assessment Value $ 224,015 Tax Levy $1, $ $53.95 $0.04 $13.35 $1, Flat Tax Frontage Utilities (Water, Sewer, Garbarge) Total 2015 $2, $ $53.95 $0.04 $13.35 $0.00 $2, Average Increase 1.55% 22.59% 6.10% 25.00% -6.74% 2.41% % Assessment increase 2.35% Page 20 of 22

21 2016 Property Tax Rates Bylaw 2426, of 6 May 3, 2016 Attachment #2 CITY OF POWELL RIVER BYLAW 2426, 2016 A bylaw for the levying of property tax rates for City, Regional District, and Regional Hospital District purposes for the year 2016 The Council of the City of Powell River, in open meeting assembled, enacts as follows: 1. This Bylaw may be cited as Annual Property Tax Rates Bylaw 2426, 2016". 2. The following property tax rates are imposed and levied for the year 2016: 1. For the purposes of the City of Powell River: a) on the assessed value of land and improvements taxable for general municipal purposes rates appearing in Column A of Schedule "A" attached to and forming a part of this bylaw; and b) on each parcel of taxable Class 1 Residential i) a Flat Rate Tax of $ on each parcel with improvements; or ii) a Flat Rate Tax of $87.00 on each parcel without improvements (vacant land only); 2. For the purposes of the Powell River Regional District on the assessed value of land and improvements taxable for other purposes rates appearing in Column B of Schedule A attached to and forming a part of this bylaw; 3. For the purposes of the Powell River Regional Hospital District on the assessed value of land and improvements taxable for other purposes rates appearing in Column C of Schedule "A" attached to and forming a part of this bylaw. READ A FIRST TIME the day of May, READ A SECOND TIME the day of May, READ A THIRD TIME the day of May, ADOPTED the day of May, David J. Formosa, Mayor Marie Claxton, City Clerk Page 21 of 22

22 2016 Property Tax Rates Bylaw 2426, of 6 May 3, Property Tax Rates Bylaw 2426, 2016 Page 2 of 2 City of Powell River Annual Tax Rates Bylaw 2426, 2016 Schedule "A" 2016 PROPERTY TAX RATES (dollars of property tax per $1000 of taxable assessed value) PROPERTY CLASS A B C City of Powell River Powell River Powell River General Regional Regional Municipal District Hospital District 1 Residential Utilities Major Industry Light Industry Business/Other Managed Forest Land Recreation/Non-Profit Farm Page 22 of 22