STAFF REPORT TO: FROM: SUBJECT: Committee of the Whole Monica Quinlan, Treasurer Provincial Parks Property Assessment Appeal DATE: October 18 th, 2016 RECOMMENDATION THAT Committee of the Whole recommends to Council that it authorize the Treasurer to move forward with the proposed minutes of settlement regarding the Provincial Parks Property Assessment. BACKGROUND At the October 4 th, 2016 Committee of the Whole of Council meeting a staff report (attached) was brought forward to explain the latest update to the Town s Provincial Park Assessment Appeal, with the assistance of MTE Paralegal Services. At the meeting staff were requested to bring forward a cost estimate to continue to proceed with the appeal process should the Town decide to not agree to the latest negotiated minutes of settlement. As described in the attached report, should the Town decide to agree with the minutes of settlement the net impact to taxation compared to 2012 would be a decrease by approximately $30k per year instead of the approximately $60k per year the Town has been experiencing over the last several years. DISCUSSION Attached you will find a quote received from MTE to continue the appeals process, with the first step being having the matter heard at the ARB (Assessment Review Board) at a cost of $100,000. This quote only covers this first step and does not include any costs associated with the appeal continuing beyond that, since it is very difficult for the consultants to predict what may happen after the ARB. Please note discussions would also occur with the County to see if a cost-sharing agreement could be entered into since the County also benefits if the final appeal is in the Town s favour. (County 1/3: Town 2/3 - to reflect taxation benefit split). CONCLUSION The appeal on the Provincial Park Property assessment has extended over the last four (4) years. From discussions with MTE it is expected that should the Town decide to continue the appeal it is anticipated to go to the highest courts which can be a very expensive and lengthy process. Therefore it is recommended that the Town agree to the minutes of settlement proposed as presented. Respectfully Submitted, Monica Quinlan, Treasurer (Encls) Form: WB-SR2010
2 From: Dave Powell [mailto:davep@mte.ca] Sent: 2016/October/14 1:11 PM To: Monica Quinlan Subject: Wassaga Beach estimates for MNR appeal continuing to the ARB Without Prejudice WASAGA BEACH APPEAL COSTS ARB HEARING ONLY days TCC with the ARB to set hearing dates and other procedures 1/2 Retain a lawyer and fill him in what we know today 1 Research for discoveries, questions to lawyer for discoveries 1 Discoveries 2 Further research from discoveries 2 Potential to go to Divisional court on a question being proposed (Prep) 2 May require some photographs of properties 1/2 Further research as data filters in 3 Prepare reports for hearing 2 Update lawyer, 2 Go over hearing details and presentation 1 Hearing 5 Approximate 22 32 ½ days x various consultants times = approximately $40,000+ Lawyers fees 15 days @ $500/ hr = $60,000 Therefore, for the ARB we would recommend that Council set aside $100,000. This appeal deals with two other government departments so don t know how far they would go or even if they might go for a settlement once we are underway should we go the hearing route. All this is a guesstimate since no one can predict the times that may be required. If we can come in lower we would certainly work towards that. I hope this helps explain why it is so difficult to predict costs for an appeal since we enter the unknown as appeals have a life of their own. Regards. David Powell BA, AACI, P.App, MIMA, CEI, PLE. Senior Consultant / Licensed Paralegal MTE Paralegal Professional Corporation. Tel: 905-878-7978 Ext. 406 Toll Free: 1-877-659-0250 Ext. 406 Fax: 905-878-9092
STAFF REPORT TO: FROM: SUBJECT: Committee of the Whole Monica Quinlan, Treasurer Provincial Parks Property Assessment DATE: October 4 th, 2016 RECOMMENDATION THAT Committee of the Whole recommends to Council that it authorize the Treasurer to move forward with the proposed minutes of settlement regarding the Provincial Parks Property Assessment. BACKGROUND In the latter part of 2012 Municipal Property Assessment Corporation (MPAC) came forward with a new approach to valuing Provincial Park properties that reside in all municipalities across Ontario. While some Provincial Parks increased in value the Town of Wasaga Beach property value decreased by just over $28 Million causing a decreased taxation amount of approximately $60,000 (municipal portion only) per year beginning in 2013. The presentation from MPAC is attached hereto and has been the basis of the Town s appeals lead by Municipal Tax Equity Consultants (MTE) since that time. MTE are the property assessment experts that the County employs to protect assessed values within Simcoe County. The appeal was filed based on several points with the main argument being that of the original sixty (60) properties there were ten (10) properties included in the reduced assessment which were individually serviced lots that were not used as part of the Provincial Park and they should therefore drive higher values. DISCUSSION While staff have provided updates to members of Council over the past several years recently a mediation was held between the Ministry of Natural Resources and Forestry (MNRF), MPAC and MTE to review and discuss the appeals. The results of this mediation are that the values would increase for the years 2013 through to 2016 by $1,838,900 which results in an increase in the Municipal Portion of Taxation of approximately $11,000 per year. In addition to this, the 2016 CVA is proposed to increase by an additional $2,474,000 which provides an additional $15,547 per year (based on 2016 tax rates). The total of all the changes noted above would result in an increase of just over $27,000 or approximately half of the initial overall loss. The information is detailed below and in the attached report from MTE, while Appendix A depicts the value changes from 2012 to 2015. You will note that the increase in values also impacts the County and discussions will also take place with the Director of Finance at the County to ensure he is in agreement. Form: WB-SR2010
2 43-64-010-008-004-00 2013 2014 2015 2016 Cumulative Current County Tax 163,034 162,227 160,071 159,532 644,864 Current Municipal Tax 258,161 261,273 201,603 207,761 928,798 Current O.P.P Levy Tax - - 59,664 57,493 117,156 Current 1% Capital Levy Tax - - 2,613 2,572 5,184 Current Total Tax $ 421,195 $ 423,500 $ 423,951 $ 427,358 $ 1,696,002 Revised County Tax 170,069 169,227 166,977 166,415 672,688 Revised Municipal Tax 269,300 272,546 210,301 216,725 968,872 Revised O.P.P Levy Tax - - 62,238 59,973 122,211 Revised 1% Capital Levy Tax - - 2,725 2,683 5,408 Revised Total Tax $ 439,369 $ 441,773 $ 442,241 $ 445,796 $ 1,769,179 County Tax Change $ 7,035 $ 7,000 $ 6,906 $ 6,883 $ 27,824 Municipal Tax Change $ 11,139 $ 11,273 $ 8,698 $ 8,964 $ 40,074 O.P.P Levy Tax Change $ - $ - $ 2,574 $ 2,480 $ 5,055 1% Capital Levy Tax Change $ - $ - $ 112 $ 111 $ 224 Total Tax Change $ 18,174 $ 18,273 $ 18,290 $ 18,438 $ 73,177 CONCLUSION The appeal on the Provincial Park Property assessment has extended over the last four (4) years. From discussions with MTE it is expected that should the Town decide to continue the appeal it is anticipated to go to the highest courts which can be a very expensive and lengthy process. Therefore it is recommended that the Town agree to the minutes of settlement proposed as presented. Respectfully Submitted, Monica Quinlan, Treasurer
CONFIDENTIAL HYPOTHETICAL TAX IMPACT SUMMARY 555 BLUEBERRY TRAIL 43-64-010-008-004-00 Prepared For: SIMCOE COUNTY (TOWN OF WASAGA BEACH) By: MUNICIPAL TAX EQUITY (MTE) CONSULTANTS INC. GEORGETOWN, ONTARIO WWW.MTE.CA Published On: MONDAY SEPTEMBER 19 TH, 2016 2016 Municipal Tax Equity (MTE) Consultants Inc.
CONFIDENTIAL DISCLAIMER AND CAUTION The information, views, data and discussions in this document and related material are provided for general reference purposes only. Regulatory and statutory references are, in many instances, not directly quoted excerpts and the reader should refer to the relevant provisions of the legislation and regulations for complete information. The discussion and commentary contained in this report do not constitute legal advice or the provision of legal services as defined by the Law Society Act, any other Act, or Regulation. If legal advice is required or if legal rights are, or may be an issue, the reader must obtain an independent legal opinion. Decisions should not be made in the sole consideration of or reliance on the information and discussions contained in this report. It is the responsibility of each individual in either of a decision-making or advisory capacity to acquire all relevant and pertinent information required to make an informed and appropriate decision with regards to any matter under consideration concerning municipal finance issues. MTE is not responsible to the municipality, nor to any other party for damages arising based on incorrect data or due to the misuse of the information contained in this study, including without limitation, any related, indirect, special or consequential damages. 2016 Municipal Tax Equity (MTE) Consultants Inc.
CONFIDENTIAL HYPOTHETICAL TAX IMPACT SUMMARY The following tax impact summary has been prepared to illustrate the effect of revised assessment values that have been indicated in respect of the subject property for taxation years 2013 to 2016. This summary must be considered preliminary and speculative in nature and must only be relied upon for general information purposes as documentation in respect of the assessment changes for 2013 to 2016 taxation years have not yet been prepared or published. Hypothetical Assessment Change Summary 43-64-010-008-004-00 2013 2014 2015 2016 Current CG 42,620,000 42,620,000 42,620,000 42,620,000 Revised CG 44,458,900 44,458,900 44,458,900 44,458,900 Property Total Change $ 1,838,900 1,838,900 1,838,900 1,838,900 Property Total Change % 4.31% 4.31% 4.31% 4.31% Hypothetical CVA Tax Change Summary 43-64-010-008-004-00 2013 2014 2015 2016 Cumulative Current County Tax $163,034 $162,227 $160,071 $159,532 $644,864 Current Municipal Tax $258,161 $261,273 $201,603 $207,761 $928,798 Current O.P.P Levy Tax $0 $0 $59,664 $57,493 $117,156 Current 1% Capital Levy Tax $0 $0 $2,613 $2,572 $5,184 Current Total Tax $421,195 $423,500 $423,950 $427,357 $1,696,003 Revised County Tax $170,069 $169,227 $166,977 $166,415 $672,688 Revised Municipal Tax $269,300 $272,546 $210,301 $216,725 $968,872 Revised O.P.P Levy Tax $0 $0 $62,238 $59,973 $122,211 Revised 1% Capital Levy Tax $0 $0 $2,725 $2,683 $5,408 Revised Total Tax $439,368 $441,773 $442,242 $445,796 $1,769,179 County Tax Change $7,034 $7,000 $6,906 $6,883 $27,824 Municipal Tax Change $11,139 $11,273 $8,698 $8,964 $40,074 O.P.P Levy Tax Change $0 $0 $2,574 $2,481 $5,055 1% Capital Levy Tax Change $0 $0 $113 $111 $224 Total Tax Change $18,173 $18,273 $18,292 $18,439 $73,176 2016 Municipal Tax Equity (MTE) Consultants Inc.
Wasaga Beach Provincial Park 1 2012 Current Value Assessment November 2012
Provincial Parks Review MPAC conducted a thorough review of Provincial Park valuations across Ontario in response to Requests for Reconsideration and Assessment Review Board appeals filed on 19 Provincial Parks Analysis identified inconsistencies in the historical valuations 2
Provincial Parks Review 3 Ministry of Natural Resources (MNR), as the authority for Ontarios Provincial Parks provided the following data: Regulated park acreages and boundaries Development Zones (e.g., campground) Non-Development Zones (e.g., parkland) Current capitalized costs for buildings Provincial Parks analysis for 2012 Assessment Update included MNR data (above) and MPACs sales analysis for: Bulk residential land Vacant waterfront land Vacant commercial land
Park Valuations - Historical View Provincial park properties have been valued on the principal of highest and best use, similar to neighbouring properties Regulated park boundaries have changed over time Multiple roll numbers within park boundaries and parks that span municipal boundaries resulted in various methodologies being applied to determine the park valuations 4
Wasaga Beach Provincial Park 5 Wasaga Beach Provincial Park Plan comprises 60 parcels of land Parcels are not all contiguous Regulatory change must occur before an individual parcel could be sold Historically, each parcel was valued as an individual parcel that could be sold on the open market Resulting current value assessment was higher than if the park was valued as one parcel
Wasaga Beach Provincial Park 2012 Current Value Assessment 6 Park Class Recreation Regulated Park Area 4,557 acres Development Zone 33.5% (includes main street/waterfront area and some parkland) Non-Development Zone 66.5% (includes parkland only)
Wasaga Beach Provincial Park 2012 Current Value Assessment Details Development Zone Value 1 $ 6,256,600 Non-Development Zone Value 2 $ 3,369,000 Waterfront Value 3 $38,502,400 Capitalized Building Value(s) 4 $ 3,743,000 2012 Current Value Assessment $51,871,000 1) Development zone value is calculated using the median ratio difference between 1 acre of bulk residential land to 1 acre of commercial vacant land by assessment region (1,526 acres x $4,100 = $6,256,600) 2) Non-development zone value is calculated using bulk residential land rates by assessment region (3,031 acres x $1,111 = $3,369,000) 3) Waterfront value is a premium calculated using the median ratio difference between the 1 acre of vacant residential waterfront to 1 acre of inland residential vacant land by assessment region and applying the difference (400%) to the rates per acre to the total park acreage 4) Capitalized Building Value(s) provided by the Ministry of Natural Resources and are based on the same principles that MPAC applies for all buildings (e.g., replacement cost new less depreciation) 7
French River Provincial Park 181,693 51,782,999 285 Wasaga Beach Provincial Park 4,557 51,871,700 11,382 Sandbanks Provincial Park 3,832 36,506,116 9,526 Pinery Provincial Park 6,257 30,687,000 4,905 8 Comparable Parks Provincial Park Acreage 2012 CVA Value Per Acre Massasauga Provincial Park 32,382 63,691,000 1,967
Provincial Properties Outside the Regulated Park Boundary Ministry of Natural Resources 0.18 acres - 2012 CVA $405,000 9 Ministry of Natural Resources 0.59 acres - 2012 CVA $479,000
Municipality 2008 CVA 2012 CVA Difference North 210,787,300 250,343,500 39,556,200 Northeast 417,433,600 389,786,600-27,647,000 Southwest 164,363,900 166,212,700 1,848,800 Southcentral 16,029,300 30,708,600 14,679,300 East 50,655,900 65,639,900 14,984,000 GTA West 68,839,000 134,309,000 65,470,000 Toronto/Durham 1,985,000 3,379,000 1,394,000 Grand Total 930,094,000 1,040,379,300 110,285,300 10 Provincial Summary 2012 Valuation Changes
11 Thank you Questions?
Appendix 'A' - Wasaga Beach Provincial Park New Valuation Approach and Class Changes 2008 CVA ANALYSIS 2012 CVA ANALYSIS TAXATION ANALYSIS Roll Number Owner Prop Code Parcel Acreage RTC RTQ 1 CVA_1 2008 CVA Total 2012 CVA Market Difference RG Value CG Value 2012 PILS TOTAL 2015 PILS TOTAL 2012 PILS Municipal 2015 PILS Municipal 436401000101900 MNR 100 2.24 RG 124,000 124,000 39,543 (84,457) 13,102 26,441 907.84-588.68-436401000102000 MNR 110 0.46 RG 492,000 492,000 8,121 (483,879) 2,691 5,430 3,602.06-2,335.71-436401000110500 MNR 107 41.01 RG 944,000 944,000 723,961 (220,039) 239,877 484,085 7,482.32-4,851.82-436401000113300 MNR 110 0.83 RG 831,000 831,000 14,652 (816,348) 4,855 9,797 6,083.96-3,945.07-436401000113700 MNR 110 1.38 RG 1,104,000 1,104,000 24,362 (1,079,638) 8,072 16,290 8,082.66-5,241.11-436401000122400 MNR 110 0.55 RG 685,000 685,000 9,709 (675,291) 3,217 6,492 5,015.06-3,251.96-436401000131200 MNR 110 0.55 RG 685,000 685,000 9,709 (675,291) 3,217 6,492 5,015.06-3,251.96-436401000142700 MNR 100 0.91 RG 115,000 115,000 16,064 (98,936) 5,323 10,742 841.94-545.95-436401000150000 MNR 107 25.00 RG 3,541,000 3,541,000 441,332 (3,099,668) 146,231 295,102 25,924.55-16,810.47-436401000163700 MNR 110 0.27 RG 271,000 271,000 4,766 (266,234) 1,579 3,187 1,984.06-1,286.54-436401000504200 MNR 107 14.49 RG 3,243,000 3,243,000 255,796 (2,987,204) 84,755 171,041 23,742.81-15,395.75-436401000514300 MNR 100 1.65 RG 192,000 192,000 29,128 (162,872) 9,651 19,477 1,405.68-911.50-436401000514800 MNR 100 0.62 RG 134,000 134,000 10,945 (123,055) 3,627 7,319 981.05-636.15-436401000535300 MNR 107 1.84 RG 3,279,000 3,279,000 32,482 (3,246,518) 10,763 21,719 25,880.62-16,781.99-436401000618200 MNR 110 0.94 RG 1,109,000 1,109,000 16,594 (1,092,406) 5,498 11,096 8,119.27-5,264.84-436401000624300 MNR 110 1.59 RG 1,253,000 1,253,000 28,069 (1,224,931) 9,300 18,768 9,173.53-5,948.47-436401000624400 MNR 110 0.73 RG 858,000 858,000 12,887 (845,113) 4,270 8,617 6,281.63-4,073.25-436401000648600 MNR 110 3.85 RG 1,608,000 1,608,000 67,965 (1,540,035) 22,520 45,446 11,772.57-7,633.79-436401000654300 MNR 107 19.21 RG 2,844,000 2,844,000 339,120 (2,504,880) 112,364 226,756 22,102.85-14,332.34-436401000654600 MNR 101 1.66 RG 194,000 194,000 29,304 (164,696) 9,710 19,595 1,420.32-920.99-436401000657700 MNR 100 0.01 RG 50,000 50,000 177 (49,823) - 177 366.06-237.37-436401000657801 MNR 101 0.06 RG 71,000 71,000 1,059 (69,941) 351 708 519.81-337.06-436401000667600 MNR 107 47.11 RG 13,778,000 13,778,000 831,646 (12,946,354) 275,557 556,089 100,872.18-65,409.40-436401000667601 MNR 107 127.00 RG 22,158,000 22,332,472 2,241,967 (20,090,505) 742,851 1,499,116 162,224.26-105,192.45-436401000706300 MIO 107 282.14 RG 1,613,000 2,009,000 4,980,697 2,971,697 1,650,299 3,330,398 11,809.18 91,862.52 7,657.52 57,177.94 436401000714500 MNR 107 20.56 RG 309,000 309,000 362,952 53,952 120,260 242,691 2,262.27-1,466.94-436401000775200 MNR 110 1.24 RG 171,000 171,000 21,890 (149,110) 7,253 14,637 1,251.93-811.80-436401000783500 MIO 107 3.79 RG 188,000 188,000 66,906 (121,094) 22,169 44,737 1,376.40-892.51-436401000800400 MNR 107 1,878.50 RG 3,321,000 3,322,768 33,161,692 29,838,924 10,987,764 22,173,928 24,313.87 423,950.25 15,766.05 263,879.16 436401000945400 MNR 110 1.45 RG 715,000 715,000 25,597 (689,403) 8,481 17,116 5,234.69-3,394.38-436401001038800 MNR 110 0.20 RG 455,000 455,000 3,531 (451,469) 1,170 2,361 3,331.17-2,160.06-436401001139401 MNR 107 56.91 RG 349,000 349,000 1,004,648 655,648 332,879 671,769 2,555.12-1,656.84-436401001193900 MNR 107 101.03 RG 347,000 347,000 1,783,511 1,436,511 590,947 1,192,564 2,540.47-1,647.34-436401001202100 MIO 107 99.69 RG 343,000 343,000 1,759,856 1,416,856 583,109 1,176,747 2,511.19-1,628.35 - Page 1 of 2
Appendix 'A' - Wasaga Beach Provincial Park New Valuation Approach and Class Changes 2008 CVA ANALYSIS 2012 CVA ANALYSIS TAXATION ANALYSIS Roll Number Owner Prop Code Parcel Acreage RTC RTQ 1 CVA_1 2008 CVA Total 2012 CVA Market Difference RG Value CG Value 2012 PILS TOTAL 2015 PILS TOTAL 2012 PILS Municipal 436401001203300 MNR 107 10.74 RG 99,000 99,000 189,596 90,596 62,821 126,776 724.80-469.99-436401001217900 MIO 107 137.62 RG 473,000 473,000 2,429,445 1,956,445 804,970 1,624,475 3,462.95-2,245.51-436401001300100 MNR 107 1.15 CG 1,015,000 1,015,000 20,301 (994,699) 6,727 13,575 9,304.44-6,033.36-436401001300700 MNR 110 0.18 RG 433,000 433,000 3,178 (429,822) 1,053 2,125 3,243.31-2,103.09-436401001300900 MNR 110 0.36 RG 613,000 613,000 6,355 (606,645) 2,106 4,249 4,487.93-2,910.14-436401001301200 MNR 110 0.20 RG 445,000 445,000 3,531 (441,469) 1,170 2,361 3,257.96-2,112.58-436401001301400 MNR 110 0.82 RG 856,000 856,000 14,476 (841,524) 4,796 9,679 6,266.99-4,063.76-436401001303000 MNR 101 0.87 RG 132,000 132,000 15,358 (116,642) 5,089 10,270 966.41-626.65-436401001307800 MNR 100 0.23 RG 113,000 113,000 4,060 (108,940) 1,345 2,715 827.30-536.45-436401001316700 MNR 101 0.33 RG 117,000 117,000 5,826 (111,174) 1,930 3,895 856.59-555.44-436401001317000 MNR 100 0.16 RG 102,000 102,000 2,825 (99,175) 936 1,889 746.77-484.23-436401001320600 MNR 100 0.16 RG 102,000 102,000 2,825 (99,175) 936 1,889 746.77-484.23-436401001320900 MNR 100 0.34 RG 114,000 114,000 6,002 (107,998) 1,989 4,013 834.62-541.20-436401001324500 MNR 100 0.37 RG 116,000 116,000 6,532 (109,468) 2,164 4,367 849.27-550.70-436401001327500 MNR 100 0.15 RG 102,000 102,000 2,648 (99,352) 877 1,771 746.77-484.23-436401001328700 MNR 107 38.65 RG 975,000 975,000 682,299 (292,701) 226,072 456,227 7,138.22-4,628.70-436401001334200 MNR 101 0.33 RG 94,000 94,000 5,826 (88,174) 1,930 3,895 688.20-446.25-436401001334300 MNR 101 1.40 RG 110,000 110,000 24,715 (85,285) 8,189 16,526 805.34-522.21-436401001334600 MNR 107 0.40 RG 1,759,000 1,759,000 7,061 (1,751,939) 2,340 4,722 12,878.08-8,350.64-436401001335100 MNR 110 0.18 RG 487,000 487,000 3,178 (483,822) 1,053 2,125 3,565.45-2,311.97-436401001336100 MNR 110 0.37 RG 615,000 615,000 6,532 (608,468) 2,164 4,367 4,502.57-2,919.64-436401001336400 MNR 110 0.74 RG 855,000 855,000 13,063 (841,937) 4,328 8,735 6,259.67-4,059.01-436401001339600 MNR 110 0.68 RG 744,000 744,000 12,004 (731,996) 3,977 8,027 5,447.01-3,532.05-436401001357300 MNR 110 0.92 RG 974,000 974,000 16,241 (957,759) 5,381 10,860 7,130.90-4,623.95-436401001369400 MNR 110 1.29 RG 494,000 494,000 22,773 (471,227) 7,545 15,227 3,616.70-2,345.21-436401001372600 MNR 110 0.25 RG 233,000 233,000 4,413 (228,587) 1,462 2,951 1,705.85-1,106.14-2015 PILS Municipal 2,938.36 $ 80,118,240 $ 51,871,700 $ (28,246,540) $ 17,187,062 $ 34,684,639 $ 588,049 $ 515,813 $ 381,314 $ 321,057 $ 72,236 Difference $ (60,257) Page 2 of 2