STAFF REPORT TO COUNCIL

STAFF REPORT TO COUNCIL Date: Monday, August 29, 2016 To: Chief Administrative Officer From: Louise Kaiser, Deputy Director of Finance Subject: Permissive Tax Exemption Bylaw 1156, 2014. Amendment Bylaw 1193, 2016 RECOMMENDATION THAT Council amend the Permissive Tax Exemption Policy as presented in the Deputy Director of Finance s report dated August 29, 2016; AND THAT Permissive Tax Exemption Bylaw 1156, 2014, Amendment Bylaw 1193, 2016 be read the first, second and third time. PURPOSE For Council to consider permissive tax exemption for the Sparwood Treehouse Daycare and the Royal Canadian Legion property (except the portion of the building that comprises the bar area) for the tax years 2017 to 2024 inclusive. BACKGROUND 1) Sparwood Treehouse Daycare The Sparwood Treehouse Daycare was previously considered exempt from property tax based on the lease agreement between the School District No. 5., Southeast Kootenay (SD5) and the District of Sparwood. Under the new lease agreement between SD5 and Teck, in order to benefit from continued tax exemption, Sparwood Treehouse Daycare needs to be exempted via the District s Permissive Tax Exemption Bylaw under Section 224(2)(a). 2) Royal Canadian Legion At the June 29, 2015 Committee of the Whole meeting, Council requested that staff explore tax relief options for the Royal Canadian Legion. It has been deemed that the most effective and equitable manner to exempt the Legion building from taxes is via a permissive tax exemption under Section 224(2)(a). The most recent letter of request from the Royal Canadian Legion is attached (Attachment 1). While it is eligible for a permissive tax exemption under the Community Charter, it doesn t qualify for a permissive tax exemption under the District s current Permissive Tax Exemption policy. It is proposed that the Permissive Tax Policy be amended to permit this exemption and is presented for approval (Attachment 2). INTERNAL CIRCULATION N/A

LEGAL/STATUTORY AUTHORITY Community Charter, Section 137 authorizes Council to amend a bylaw. Community Charter, Section 224 Permissive Exemptions. Council may provide exemptions for certain properties for up to ten years. The current bylaw was established for ten years and expires in 2024. This amendment provides tax exemption to the Legion for the remaining eight years of this bylaw. Community Charter, Section 260 authorizes Council to establish bylaws for the purposes of enforcing bylaws of the municipality. LEGAL/STATUTORY PROCEDURAL REQUIREMENTS Community Charter, Section 227 requires public notice including advertisement in two consecutive issues of the Free Press. Community Charter, Section 135 requires that a bylaw be given three readings prior to adoption by Council and allows Council to give up to three readings at one meeting. However, there must be at least one day between third reading and adoption. COMPLIANCE WITH CORPORATE STRATEGIES & POLICIES 2014-2018 Corporate Strategic Plan GOAL: 3. An active, involved and healthy community o Objective: 3.2 To support increased access to diverse community services for all residents. FINANCIAL / BUDGETARY CONSIDERATIONS General property tax revenue foregone by providing permissive tax exemption to the Sparwood Treehouse Daycare in 2017 would be approximately $946. Note that this property was previously exempt under the former lease between the District and Teck so there is no change from prior years. General property tax revenue foregone by providing permissive tax exemption to the Royal Canadian Legion Club in 2017 would be approximately $853. In addition to relief from District taxes, the property would also receive tax relief from other taxing authorities. Property tax exemptions only apply to property taxes and do not apply to parcel taxes or user fees. PERSONNEL IMPLICATIONS NIL

EXTERNAL AGENCY / PUBLIC COMMENTS The public notice will be published in the September 22 and September 29, 2016 issues of the Free Press (Attachment 3). Public comments received will be provided to Council. The proposed bylaw is scheduled for the first three readings at the Regular Meeting of Council on September 19, 2016 with adoption on October 3, 2016. In order to be effective for the 2017 tax year, BC Assessment Authority must receive a certified copy of the adopted Bylaw by October 31, 2016. COMMUNICATION CONSIDERATIONS The Sparwood Treehouse Daycare and Royal Canadian Legion will be notified of Council s decision with respect to tax exemption. The Permissive Tax Bylaw must be adopted by Council and submitted to BC Assessment by October 31 in the year prior to the year in which the exemptions are to take effect. OPTIONS 1. That Council approve the amendments to the Permissive Tax Policy and give first, second and third reading to the Permissive Tax Exemption Bylaw 1156, 2014, Amendment Bylaw 1193, 2016. 2. Deny the request for Permissive Tax Exemption from the Sparwood Treehouse Daycare and Royal Canadian Legion. CONCLUSION Staff is recommending Option #1. Respectfully submitted, Louise Kaiser, Deputy Director of Finance CAO s initials and comments: Terry Melcer Digitally signed by Terry Melcer DN: cn=terry Melcer, o=district of Sparwood, ou=chief Administrative Officer, email=tmelcer@sparwood.ca, c=ca Date: 2016.09.15 13:26:19-06'00' Attachments: Attachment 1 Letter from the Royal Canadian Legion Attachment 2 Proposed Permissive Tax Exemption Policy Attachment 3 Notice of Permissive Tax Exemption

NOTICE OF PERMISSIVE TAX EXEMPTION BYLAW Take Notice, that Council of the District of Sparwood will be considering Permissive Tax Exemption Bylaw 1156, 2014, Amendment Bylaw 1193, 2016 to exempt additional properties from taxation in accordance with Section 224 of the Community Charter. This Bylaw is scheduled to receive three readings at the Regular Council Meeting of Monday, September 19, 2016 at 7:00 pm and be adopted at the Regular Council Meeting, of Monday, October 3, 2016 at 1:00 p.m. in the Council Chambers. Details of the additional exemptions, for eight years from 2017 to 2024, is as follows: Folio Address Type of Exemption Estimated General Portion of Tax Exempted 2017 2018 2019 2398.001 421 Pine Avenue Section 224 (2)(a) $ 946 $ 974 $1,003 Sparwood Treehouse Daycare 3028.050 117 Centennial Square Section 224 (2)(a) $ 853 $ 879 $ 905 Royal Canadian Legion Club (except the portion that comprises the bar area) A copy of the proposed Bylaw and related documentation may be inspected at the District of Sparwood Municipal Office, 136 Spruce Avenue, Sparwood, BC during regular business hours of Monday to Friday, 8:30 am 4:00 pm, excluding statutory holidays. Michele Schalekamp Director of Finance

DISTRICT OF SPARWOOD BYLAW 1193 A Bylaw to amend Permissive Tax Exemption Bylaw 1156, 2014. WHEREAS Council has adopted Permissive Tax Exemption Bylaw 1156, 2014; AND WHEREAS Council has deemed it appropriate to amend Bylaw 1156, 2014 to exempt the Sparwood Treehouse Daycare and a portion of the Royal Canadian Legion property from property taxes; NOW THEREFORE the Council of the District of Sparwood in open meeting assembled enacts as follows: 1. This bylaw may be cited as Permissive Tax Exemption Bylaw 1156, 2014, Amendment Bylaw 1193, 2016. 2. That Permissive Tax Exemption Bylaw 1156, 2014, be amended by inserting the following new section after Section 6 and renumbering the remaining section: 7. The following properties are hereby exempted from taxation pursuant to Section 224 (2) of the Community Charter for the calendar years 2017-2024: (a) Lot A District Lot 4589, Kootenay District, Plan 19215, owned by BOARD OF SCHOOL TRUSTEES SCHOOL DISTRICT #5 (SE) (Folio 2398.001 Sparwood Treehouse Daycare only). (b) District Lot 4589, Kootenay District, Plan NEP7008, owned by ROYAL CANADIAN LEGION MICHEL NATAL (Folio 3028.050) for 42% of Class 6 property with full exemption for the Class 8 property. READ A FIRST TIME THIS DAY OF 2016 READ A SECOND TIME THIS DAY OF 2016 READ A THIRD TIME THIS DAY OF 2016 Notice advertised in the Free Press on the and day of, 2016, the District s website and Notice Board on the day of, 2016. ADOPTED BY COUNCIL THIS DAY OF 2016 Mayor Corporate Officer Permissive Tax Exemption Bylaw 1156, 2014. Amendment Bylaw 1193, 2016 Page 1 of 1