Corporate Report Report from Financial Management Services, Accounting Date of Report: April 5, 2017 Date of Meeting: May 8, 2017 Report Number: FMS-110-2017 File: 10.57.12 Subject: 2017 Property Tax Rates Recommendation That Council approve the property tax rates as detailed in Appendix 1; and That the City Solicitor be directed to prepare the necessary by-law(s). FORTHWITH Summary The Regional Municipality of Niagara approved the 2017 Tax Ratios at its meeting of March 30, 2017, and passed the appropriate by-laws. The City received notification from the Province on April 5, 2017 regarding the approval of the 2017 Education Property Tax Rates. The City is now in position to finalize the City s 2017 Property Tax Rates. Background The total property bill is comprised of levies from the City of St Catharines, Regional Municipality of Niagara and the School Boards. Property taxes are calculated by multiplying the current value assessment (CVA) by the tax rate for that class of property. The CVA is established by the Municipal Property Assessment Corporation (MPAC). MPAC is a not for profit corporation with every municipality in Ontario being a member, which is governed by a Board of Directors comprised of taxpayer, municipal and provincial representatives. MPAC s main responsibility is to classify and value all properties in Ontario for taxation purposes according to the legislation and regulations set by the Provincial Government. Report A tax rate is established for each class of property by dividing the tax levy requirement by the weighted assessment. The assessment is weighted by the tax ratios. There are seven major property classes: Class 1 Class 2 Residential Multi-residential Page 1 of 5
Class 3 Class 4 Class 5 Class 6 Class 7 Commercial Industrial Pipeline Farm Managed Forests In addition to these major classes, the Region has the following: Class 8 Class 9 Class 10 Class 11 Class 12 Class 13 Class 14 Class 15 New Multi-residential New Commercial Office Building Shopping Centre Parking Lots and Vacant Land Large Industrial New Industrial New Large Industrial The tax ratio reflects how a property class s tax rate compares with the residential tax rate. The residential tax ratio is equal to one. A. Business Improvement Area (BIA) Levies The City has established two Business Improvement Areas (BIA). The purpose of these BIA s is the improvement, beautification and maintenance of municipally-owned land and to promote the area as a business or shopping area. The BIA levy is raised from the commercial properties in the BIA area. The City has two Business Improvement Areas: 1) The St. Catharines Downtown Association which was established in 1973 pursuant to the Ontario Municipal Act, operates to revitalize and promote the downtown core of St. Catharines. 2) The Port Dalhousie BIA which was established in 1986 pursuant to the Ontario Municipal Act, operates to revitalize and promote the Port Dalhousie Business Improvement Area. The St. Catharines Downtown Association, at their General Membership meeting held February 28, 2017, approved its 2017 Budget in the amount of $384,431 (2016 levy of $384,431). The Port Dalhousie BIA notified the City of St Catharines on March 27, 2017 that its approved 2017 Budget is $10,000. (2016 levy of $10,000). B. Regional General Tax Rate The Region approved its general tax rates on March 30, 2017. These rates are detailed on Appendix 1. Page 2 of 5
C. Education Rates The education rates for 2017 are included on Appendix 1. The Province of Ontario announced the 2017 uniform residential education tax rate would be reduced from the 2016 rate. The 2017 uniform residential education tax rate is set at 0.179 per cent. (0.188 per cent in 2016). D. Regional Waste Management The Region has two primary authorities to raise its waste management costs: 1) An upper tier levy - special (Section 311 (4) of the Municipal Act 2001. 2) Fees and Charges (Section 390 of the Municipal Act 2001). The Region has decided to levy its waste management cost by a special levy tax rate for 2017. This is consistent with prior years. E. Tax Ratios Under Provincial Legislation, responsibility for taxation policy (including establishing tax ratios) rests with the Region. The Region at its March 30, 2017 meeting, established the following tax ratios: Property Class 2017 Ratio 2016 Ratio Residential and Farm 1.0000 1.0000 Multi-residential 2.0000 2.0440 Multi-residential - New 1.0000 1.0000 Commercial 1.7586 1.7586 Industrial - Residual 2.6300 2.6300 Large Industrial 2.6300 2.6300 Pipelines 1.7021 1.7021 Farmlands 0.2500 0.2500 Farmland Awaiting Development I 0.7500 0.7500 Farmland Awaiting Development II Class ratio 1.0000 F. City Tax Rates The City approved its 2017 Operating Budget at its February 27, 2017 meeting. G. Niagara Health System Funding Pre Levy City Council, at the May 26, 2008 meeting, approved that a separate tax rate be levied for hospital purposes beginning in 2008 in the amount of $2,029,605. This levy is intended to accumulate funds to meet the City s commitment with regard to the new Report Page 3 of 5
hospital. The approved payment schedule indicates the amount of $2,208,959 be levied in 2017. The hospital pre levy rates are included on Appendix 1. H. Infrastructure Levy City Council, at the March 8, 2016 meeting, approved that a separate infrastructure tax rate be levied to help address the existing infrastructure deficit. An infrastructure levy is a tool that will help address the infrastructure deficit, demonstrate accountability and transparency to the taxpayers about how funds are allocated and for what purpose. The infrastructure levy rates are included on Appendix 1. I. 2017 Tax Rates and Associated Schedules In summary, the following included in Appendix 1: 2017 Tax Rates 2017 Current Value Assessment 2017 Tax Levy Tax Comparison for Median Household J. Tax Installments for Protected Classes In 1998, the Province imposed mandatory limits on reform related property tax increases for commercial, industrial and multi-residential properties (i.e. Protected Property) of 10% in 1998, 5% in 1999 and 5% in 2000. These limits were implemented under the Fairness for Property Taxpayers Act (FPTA). The Continued Protection for Property Taxpayers Act 2000 (CPPTA) was passed in December 2000. The CPPTA imposed mandatory limits for 2001, and subsequent years, the limit for reform related property tax increases on the protected property classes is 5% per year. Implementation of the requirements under FPTA and CPPTA has been accomplished by using the Ontario Property Tax Analysis (OPTA) System. The OPTA system is a computer data base that was created by the Provincial Ministry of Municipal Affairs to implement the FPTA and CPPTA. In a two-tier system like the Niagara Region, the Region is responsible for the co-ordination of the cut-off of data and acts as bankers for transfer between area municipalities. The City is responsible for maintenance of the assessment data which has to be updated for assessment changes (e.g. Assessment Review Board Decisions, etc.). The update of the OPTA system is complete; however, the final information from OPTA is yet to arrive. The final property tax due dates are the same for all tax classes unless the Capping/Claw back percentages have not been received from OPTA in time to include the Capped classes (Commercial, Industrial and Multi-Residential) in which case the 1 st instalment of the Capped billing would be the last business day of July. Report Page 4 of 5
Financial Implications In order to provide for the Regional, Municipal and Educational funding for 2017, it is necessary to calculate tax rates. These tax rates are then multiplied by the appropriate assessment to calculate the individual homeowner s 2017 tax levy. Relationship to Strategic Plan The 2017 Operating Budget report referenced the relationship between the operating budget and the strategic plan. In order to levy funds for the operating budget, tax rates need to be set. Prepared/Submitted and Approved by: Kristine Douglas, CPA, CMA Director of Financial Management Services Report Page 5 of 5
City of St. Catharines 2017 Tax Rates City Infrastructure Region Total Total Class Tax Class General Hospital Urban Levy Total General Waste School General Urban Urban 1 Residential RT 0.545130% 0.013950% 0.074200% 0.006037% 0.639317% 0.577237% 0.068218% 0.179000% 1.389572% 1.463772% 0.074200% Multi-Residential MT 1.090260% 0.027900% 0.148400% 0.012075% 1.278635% 1.154474% 0.136436% 0.179000% 2.600145% 2.748545% 0.148400% New Multi-Residential NT 0.545130% 0.013950% 0.074200% 0.006037% 0.639317% 0.577237% 0.068218% 0.179000% 1.389572% 1.463772% 0.074200% Commercial Occupied CT,XT,CH 0.958666% 0.024532% 0.130488% 0.010617% 1.124303% 1.015129% 0.119968% 1.140000% 3.268912% 3.399400% 0.130488% Commercial - Excess Land CU,XU,CK 0.671066% 0.017173% 0.091342% 0.007432% 0.787013% 0.710590% 0.083978% 0.798000% 2.288239% 2.379581% 0.091342% Commercial Other - Occupied DT,GT,ST,YT,ZT 0.958666% 0.024532% 0.130488% 0.010617% 1.124303% 1.015129% 0.119968% 1.140000% 3.268912% 3.399400% 0.130488% Commercial Other Excess Land DU,SU,ZU 0.671066% 0.017173% 0.091342% 0.007432% 0.787013% 0.710590% 0.083978% 0.798000% 2.288239% 2.379581% 0.091342% Commercial Vacant Land CX,CJ 0.671066% 0.017173% 0.091342% 0.007432% 0.787013% 0.710590% 0.083978% 0.798000% 2.288239% 2.379581% 0.091342% Industrial - Occupied IT,LT,IH 1.433692% 0.036689% 0.195146% 0.015878% 1.681405% 1.518133% 0.179413% 1.390000% 4.573805% 4.768951% 0.195146% Industrial - Excess Lands IU,LU 1.003584% 0.025682% 0.136602% 0.011115% 1.176983% 1.062693% 0.125589% 0.973000% 3.201663% 3.338265% 0.136602% Industrial - Vacant Lands IX,IJ 1.003584% 0.025682% 0.136602% 0.011115% 1.176983% 1.062693% 0.125589% 0.973000% 3.201663% 3.338265% 0.136602% Industrial - New JT,KT 1.433692% 0.036689% 0.195146% 0.015878% 1.681405% 1.518133% 0.179413% 1.140000% 4.323805% 4.518951% 0.195146% Industrial - New Excess Lands JU,KU 1.003584% 0.025682% 0.136602% 0.011115% 1.176983% 1.062693% 0.125589% 0.798000% 3.026663% 3.163265% 0.136602% Pipelines PT 0.927866% 0.023744% 0.126296% 0.010276% 1.088182% 0.982515% 0.116114% 1.140000% 3.200515% 3.326811% 0.126296% Farmlands FT 0.136283% 0.003488% 0.018550% 0.001509% 0.159830% 0.144309% 0.017055% 0.044750% 0.347394% 0.365944% 0.018550% Farmlands Awaiting Dev I R1,C1 0.408848% 0.010463% 0.055650% 0.004528% 0.479489% 0.432928% 0.051164% 0.134250% 1.042181% 1.097831% 0.055650% Other Tax Rate Downtown Association - Occupied 0.350034% - Vacant 0.245024% Port Dalhousie BIA - Occupied 0.067390% - Vacant 0.047173%
City of St. Catharines Current Value Assessment - 2017 Taxable Assessment General Tax Rates: Change Property Class 2017 2016 $ % Residential 10,890,014,022 10,478,469,280 411,544,742 3.93% Multi-Residential 649,670,972 674,929,131-25,258,159-3.74% New Multi-Residential 28,119,495 27,047,160 1,072,335 3.96% Commercial Residual - Low Band 1,067,028,234 1,051,090,816 15,937,418 1.52% Commercial - Residual - Excess Land - Low Band 10,978,083 8,785,855 2,192,228 24.95% Commercial Other (excluding residual) 654,618,247 608,307,477 46,310,770 7.61% Commercial Other (excluding residual) Excess 3,457,509 3,543,430-85,921-2.42% Commercial - Vacant Land 16,051,825 18,634,800-2,582,975-13.86% Industrial - Occupied 157,780,164 175,346,137-17,565,973-10.02% Industrial - New 4,041,450 4,011,700 29,750 0.74% Industrial - Excess Lands 4,810,246 4,674,894 135,352 2.90% Industrial - New Excess Lands 56,400 56,000 400 0.71% Industrial - Vacant Land 22,867,225 20,565,000 2,302,225 11.19% Pipelines 28,947,750 28,309,000 638,750 2.26% Farmlands 103,904,675 99,825,600 4,079,075 4.09% $13,642,346,297 $13,203,596,280 438,750,017 3.32% Urban Service - City Residential $10,620,348,622 $10,213,844,780 406,503,842 3.98% Multi-Residential 649,670,972 674,929,131-25,258,159-3.74% New Multi-Residential 28,119,495 27,047,160 1,072,335 3.96% Commercial Residual - Low Band 1,053,542,631 1,038,072,646 15,469,985 1.49% Commercial - Residual - Excess Land - Low Band 10,237,602 8,146,115 2,091,487 25.67% Commercial Other (excluding residual) 654,580,507 608,275,057 46,305,450 7.61% Commercial Other (excluding residual) Excess 3,419,581 3,510,860-91,279-2.60% Commercial - Vacant Land 16,041,525 18,622,500-2,580,975-13.86% Industrial - Occupied 154,082,439 171,903,437-17,820,998-10.37% Industrial - New 4,041,450 4,011,700 29,750 0.74% Industrial - Excess Lands 4,810,246 4,674,894 135,352 2.90% Industrial - New Excess Lands 56,400 56,000 400 0.71% Industrial - Vacant Land 22,817,225 20,516,000 2,301,225 11.22% Pipelines 27,851,750 27,213,000 638,750 2.35% Farmlands 5,464,525 5,835,100-370,575-6.35% $13,255,084,970 $12,826,658,380 428,426,590 3.34% 97.16% 97.15% Total Assessment Taxable Properties $13,642,346,297 $13,203,596,280 438,750,017 3.32% YMCA - Education only 11,997,000 12,028,000-31,000-0.26% Payment in Lieu 85,849,231 88,566,740-2,717,509-3.07% Exempt Properties 1,022,241,273 994,816,400 27,424,873 2.76% $14,762,433,801 $14,299,007,420 463,426,381 3.24% Reassessment in 2017 based on January 1, 2016 valuation day. Phased in over 4 years.
City of St. Catharines 2017 Tax Levy City Infrastructure Total Tax Levy General Hospital Urban Levy Total General Waste Total School Tax Levy Residential 59,364,733 1,519,157 7,880,299 657,475 69,421,664 62,861,190 7,428,950 70,290,140 19,514,600 159,226,404 Multi-Residential 7,083,103 181,258 964,112 78,447 8,306,919 7,500,282 886,385 8,386,668 1,162,911 17,856,498 New - Multi Residential 153,288 3,923 20,865 1,698 179,773 162,316 19,183 181,499 50,334 411,605 Commercial - Occupied 10,229,237 261,763 1,374,747 113,291 11,979,038 10,831,713 1,280,092 12,111,805 12,164,122 36,254,965 Commercial - Excess Land 73,670 1,885 9,351 816 85,723 78,009 9,219 87,228 87,605 260,556 Commercial Other - Occupied 6,275,603 160,591 854,149 69,503 7,359,846 6,645,220 785,332 7,430,552 7,462,648 22,253,046 Commercial Other- Excess Land 23,202 594 3,124 257 27,176 24,569 2,904 27,472 27,591 82,240 Commercial - Vacant Land 107,718 2,757 14,653 1,193 126,321 114,063 13,480 127,543 128,094 381,957 Industrial Occupied 2,262,082 57,888 300,686 25,053 2,645,708 2,395,313 283,078 2,678,391 2,193,144 7,517,243 Industrial New 57,942 1,483 7,887 642 67,953 61,355 7,251 68,605 46,073 182,631 Industrial - Excess Land 48,275 1,235 6,571 535 56,616 51,118 6,041 57,159 46,804 160,579 Industrial - New Excess Land 566 14 77 6 664 599 71 670 450 1,784 Industrial Vacant Land 229,492 5,873 31,169 2,542 269,075 243,008 28,719 271,727 222,498 763,300 Pipelines 268,596 6,873 35,176 2,975 313,620 284,416 33,612 318,028 330,004 961,653 Farmlands 141,604 3,624 1,014 1,568 147,811 149,944 17,721 167,665 46,497 361,973 Total 86,319,111 2,208,919 11,503,877 956,000 100,987,906 91,403,115 10,802,038 102,205,153 43,483,375 246,676,434 City Infrastructure Total Comparison to 2016 General Hospital Urban Levy Total General Waste Total School Tax Levy 2016 Tax levy 84,554,378 2,208,959 11,059,034 940,000 98,762,371 89,732,425 10,980,407 100,712,832 # 45,118,285 244,593,488 Change - $ 1,764,733-40 444,843 16,000 2,225,535 1,670,690-178,369 1,492,321-1,634,910 2,082,946 Change - % 2.09% 0.00% 4.02% 1.70% 2.25% 1.86% -1.62% 1.48% -3.62% 0.85%
City of St. Catharines Tax Comparison for Median Household Residential Tax Rates: Change 2017 2016 Amount % City - General 0.545130% 0.548005% -0.002875% -0.52% City - Urban 0.074200% 0.073207% 0.000993% 1.36% City - Hospital 0.013950% 0.014316% -0.000366% -2.56% City - Infrastructure Levy 0.006037% 0.006092% -0.000055% -0.90% Total City Tax Rate 0.639317% 0.641620% -0.002303% -0.36% Region - General 0.577237% 0.581564% -0.004327% -0.74% Region - Waste 0.068218% 0.071165% -0.002947% -4.14% Total Region Tax Rate 0.645455% 0.652729% -0.007274% -1.11% School 0.179000% 0.188000% -0.009000% -4.79% Total Tax Rate 1.463772% 1.482349% -0.018577% -1.25% Taxes (Median with Current Value of $230,000) City - General 1,253.80 1,216.57 37.23 3.06% Region - General 1,327.65 1,291.07 36.58 2.83% Region - Waste Management 156.90 157.99-1.09-0.69% Urban - City 170.66 162.52 8.14 5.01% City - Infrastructure Levy 13.89 13.52 0.37 2.74% School 411.70 417.36-5.66-1.36% Total Urban Rate 3,334.60 3,259.03 75.57 2.32% City - Hospital 32.09 31.78 0.31 0.98% Total Urban Rate with Hospital $3,366.69 $3,290.81 $75.88 2.31%