The City of Sarnia TRANSIT SERVICE & PROPERTY TAXATION. People Serving People

Transcription

1 The City of Sarnia TRANSIT SERVICE & PROPERTY TAXATION People Serving People

2 Background Council requested a report in 2017 describing the advantages and disadvantages of the current Transit area taxation method Report to Council April 10, 2017 included: Direct/Indirect benefits associated with providing public transit: Affordable alternative to driving/vehicle ownership Transportation for individuals not able to or who chose not to drive Provides a link to cycling routes with bus-mounted cycle racks Youth/Student transportation and independence (elementary/secondary/college) Broadens the labour market for recruitment & supports employment Reduced costs associated with maintaining road and parking infrastructure Improved traffic flow, fewer vehicles on roads, reduced emissions/fuel use Increased availability of parking spaces Reduced costs and impacts of urban sprawl and protects farmland - intensification is a preferred planning practice Provides Safe Zone - Drivers arrange for dispatchers to contact authorities, assist with lost individuals, etc. Contributes to economic development and downtown revitalization Facilitates crowd management during special events Buses are included in contingency planning for Emergency Preparedness

3 Background con t Report to Council April 10, 2017 included: Conventional vs. Specialized Transit & Ridership #s Transit references in Official Plan/Transportation Master Plan Comparison with Other Ontario Municipalities (80 with Transit, 10 with specific Transit Levy) Administrative Aspects of Special Levy Distribution of Cost in a Municipality vs Use/Benefit By-Law 40 of 2003 Special Service Area Rate for Transit, and consideration for changes to a By-Law Options for Consideration Status Quo, Report Back, Eliminate Transit Levy On April 10, 2017, Council directed: That consideration of a change to the transit special service area levy be tabled pending a public input meeting to be held no later than September

4 Public Input Plan Approved May 29 th Residents are asked to complete the Transit Tax survey prior to June 23, paper copies are available from the Customer Service Centre at City Hall, the Strangway Centre and on various Sarnia Transit buses Special set up for input - transittax@sarnia.ca, or call Public Input meeting on June 19 th, prior to regular Council meeting Staff to report back to Council July 10 th, including summary of public input, and option considerations for 2018 Budget Year

5 Specialized vs. Conventional Transit Sarnia Transit provides public transportation. This includes conventional bus service, specialized transit (Care-A-Van), and transportation support for major events and charter services, and emergency services as needed. Both conventional and specialized transit service operate on the same hours: Monday to Friday 6:30am to 10:15pm Saturday 8:00am to 10:15pm Sunday 8:30am to 6:15pm

6 Specialized vs. Conventional Transit How are they different? Specialized Care-A-Van Application-based and provides accessible door-to-door transportation using lift equipped vehicles to those unable to use conventional fixed-route transit due to a physical disability, as per the Integrated Regulations of the Accessibility for Ontarians with Disabilities Act (AODA). Conventional Provided along fixed bus routes within the City at regular intervals on a schedule.

7 Property Tax & Transit In accordance with Section 326 of the Municipal Act, City Council established By-Law 40 of 2003, A By-Law to Levy Special Service Area Rate for Transit. The Transit Special Service Area represents a boundary of approximately 450 meters from a transit route (margin of error to 495 meters). All property types, such as homes, businesses and industries located within the special service area pay transit tax. For example, approximately 25,800 homes pay transit tax and 2,210 do not.

8 Transit Area Boundary Transit Area Boundary Map (following slide) Only the properties located within the Special Service Area (shaded area) contribute to funding the costs associated with providing conventional public transit. All property owners contribute to funding Care-A- Van specialized transit that is provided to eligible citizens, and runs throughout the entire city.

9 City of Sarnia Transit Area Boundary Map Lake Huron Legend E::]TransitArea Boundary ~ ~ I I I i blu '.la..u ConteduratJon Churchm AAMJIWNAANG LaS.allv UJ Prepared by Cit y o f Sarnia, Finan ce Department- Dated Febru ary z UJ --' --'!;:: ~ z

10 Cost of Providing Transit Services Users of both conventional and specialized (Care- A-Van) transit pay a fare, which is the same for both types of service. Taxes collected at the gas pumps subsidize public transit. The cost of operating transit services, as in other Ontario municipalities, is more than what is collected gasoline tax and fares. The remainder of the cost is collected through Property Taxation.

11 The chart below shows that $3,767,889 or 60% of the cost of conventional transit and $913,000 or 81% of specialized transit is funded through property taxation Transit Operating Budget Conventional Transit Specialized Transit Total Transit User Fare ($1,870,300) ($80,900) ($1,951,200) Gasoline Tax, etc. ($601,102) ($137,599) ($738,701) Expenditures $6,239,291 $1,131,530 $7,370,821 Funded through Property Taxation $3,767,889 $913,031 $4,680,920 % Paid by Fares 30% 7% 26% % Paid by Property Tax 60% 81% 64% Property Tax Type Transit Levy General Levy

12 Bus Fares (as of May 2017) Sarnia Transit prices for use of the transit system are comparable to other Cities, as shown below. Transit System Cash Fare Ticket Fare Pass Fare Brantford Kingston London Niagara Falls Peterborough Sarnia Sault Ste. Marie St. Catharines Sudbury Thunder Bay Windsor Average Fare

13 If the Transit Tax was eliminated, how would this impact taxpayer s? The following chart shows the estimated impact on the various types of properties in the city. For instance, a single-family residence assessed at $100,000 that is currently paying the transit tax would see their property tax bill go down $8.65, and one that isn t paying the transit tax now would see their tax bill go up by $ In total the tax dollars collected would not change, but they would be redistributed and shared by all owners within each tax class

14 Tax Class Difference per $100,000 of Assessment IF CURRENTLY PAYING for Transit NOT PAYING for Transit Total Change in Dollars for everyone CURRENTLY PAYING for Transit NOT PAYING for Transit Residential , ,507 Taxable Farmland Commercial - Farmland Industrial - Farmland Multi -Residential Commercial - Occupied ,997 53,997 Commercial - Excess Land ,312 1,312 Commercial - Vacant Lands New Commercial ,523 4,523 New Commercial Excess Shopping Centres - Occupied Industrial - Occupied ,545 42,545 Industrial - Excess Land ,074 6,074 Industrial - Vacant Lands ,732 5,732 New Industrial ,302 5,302 Large Industrial - Occupied ,470 24,470 Pipelines Farm ,640 15,640 Managed Forests Estimated using 2016 Tax Policy and 2017 Assessment Values -596, ,058

15 Public Input Survey Questions Includes 7 sections 4 - YES/NO Questions 2 - Open-ended Questions Area for additional comments

16 Public Input Survey The survey is available at Paper copies are available from the Customer Service Centre at City Hall, the Strangway Centre and on various Sarnia Transit buses Special set up for input - transittax@sarnia.ca Survey deadline is June 23, 2017 Associated information is available at