TOWN OF HIGH LEVEL SPECIAL COUNCIL MEETING Monday, May 15 th, 2017 7:00 p.m. "We will strive to improve our community's quality of life by providing a safe, sustainable environment through planning, communication and cooperation, both locally and regionally."
SPECIAL COUNCIL MEETING Room 150, Municipal Office at 7:00 p.m. May 15, 2017 AGENDA Item 1. CALL TO ORDER Pg 2. ADOPTION OF AGENDA Special Meeting Agenda of May 15, 2017 Adoption of the Agenda 2 3. OLD BUSINESS None. 4. NEW BUSINESS Bylaw 971-17 Amendment to 2017 Tax rate Bylaw 970-17 Council Discussion. 3 5. QUESTION PERIOD 6. IN CAMERA None. 7. ADJOURNMENT CALLED UNDER AUTHORITY OF SECTION 194 OF THE MUNICIPAL GOVERNMENT ACT, RSA 2000, c M-26 2
TOWN OF HIGH LEVEL Request for Decision Issue: Bylaw 971-17 Amendment to 2017 Tax Rate Bylaw 970-17 Recommendation: THAT Council give first, second and third reading to Bylaw 971-17 Amendment to 2017 Tax Rate Bylaw 970-17. (Unanimous consent is required prior to third reading.) CAO Comments: Target Decision Date: May 15 th, 2017 Submitted By: Reviewed By: Brittany Stahl, Director of Finance Dan Fletcher, CAO 3
BACKGROUND Overview: Council passed the 2017 Tax Rate Bylaw 970-17 on the April 24 th, 2017 Regular Council meeting. Upon Administrations verification process an error in the formula was discovered. Administration is bringing the Bylaw back to Council to approve the amendments. Legislation & Policy: Municipal Government Act Property Tax Bylaw 353(1) Each council must pass a property tax bylaw annually. (2) The property tax bylaw authorizes the council to impose a tax in respect of property in the municipality to raise revenue to be used toward the payment of (a) the expenditures and transfers set out in the budget of the municipality, and (b) the requisitions. (3) The tax must not be imposed in respect of property (a) that is exempt under section 351, 361 or 362, or (b) that is exempt under section 363 or 364, unless the bylaw passed under that section makes the property taxable. Tax rates 354(1) The property tax bylaw must set and show separately all of the tax rates that must be imposed under this Division to raise the revenue required under section 353(2). (2) A tax rate must be set for each assessment class or sub-class referred to in section 297. (3) The tax rate may be different for each assessment class or sub-class referred to in section 297. (3.1) Despite subsection (3), the tax rate set for the class referred to in section 297(1)(d) to raise the revenue required under section 353(2)(a) must be equal to the tax rate set for the class referred to in section 297(1)(b) to raise revenue for that purpose. (4) The tax rates set by the property tax bylaw must not be amended after the municipality sends the tax notices to the taxpayers unless subsection (5) applies. (5) If after sending out the tax notices the municipality discovers an error or omission that relates to the tax rates set by the property tax bylaw, the Minister may by order permit a municipality to revise the property tax bylaw and send out a revised tax notice. Calculating tax rates 355 A tax rate is calculated by dividing the amount of revenue required by the total assessment of all property on which that tax rate is to be imposed. Calculating amount of tax 4
356 The amount of tax to be imposed under this Division in respect of a property is calculated by multiplying the assessment for the property by the tax rate to be imposed on that property. Requisitions 359(1) When a requisition applies to only part of a municipality, the revenue needed to pay it must be raised by imposing a tax under this Division in respect of property in that part of the municipality. (2) In calculating the tax rate required to raise sufficient revenue Comments: The School Requisition decreased from $1,264,913 in 2016 to $1,257,362 in 2017. For 2017, the combined mill rate is 12.252 for residential properties, and 14.9247 for non-residential properties. The overall decrease in tax rate is 0.08% for residential and 0.2% for non-residential properties. The assessments and mill rate comparisons between 2017 and 2016 are as follows: Assessment Values 2017 2016 Assessment Incr/(Decr) Incr/(Decr) Percent Residential $226,982,110 $229,376,130 ($2,394,020) (1.04%) Non-Residential $207,702,350 $226,940,540 ($19,238,190) (8.48%) Total Assessment $434,684,460 $456,316,670 ($21,632,210) (4.7%) Tax Rates 2017 2016 Millrate Incr/(Decr) Incr/(Decr) Percent Residential General Municipal Tax 9.3690 9.3690 - - Lodge Requisition 0.1961 0.3416 (0.15) -42.6% AB School Requisition 2.6900 2.5546 0.13 5% Combined Residential Tax Rate 12.252 12.2621 (0.02) -0.08% Non-Residential General Municipal Tax 10.7690 10.7690 - - Lodge Requisition 0.1961 0.3416 (0.15) -42.6% AB School Requisition 3.9596 3.8444 0.12 3% Combined Non-Residential Tax Rate 14.9247 14.9551 (0.03) -0.2% General Municipal Rates for Residential properties, and for Non-Residential properties has no increase from the 2016 rates. The Lodge Requisition decreased from 0.3416 to 0.1961 due to the decrease in the Lodge Requisition Capital portion. 5
The Alberta School Foundation Fund (ASFF) requisition mill rate increased from 2.5546 to 2.6900 for Residential, for Non-Residential 3.8444 to 3.9596. It is due to the fact that the overall assessments have decreased. Alternatives: 1. THAT Council give first, second and third reading to Bylaw 971-17 Amendment to 2017 Tax Rate Bylaw 970-17. (Unanimous consent is required prior to third reading.) 2. That Council set new mill rates and adjust the budget accordingly. Recommended Alternative: Documents: Previous Bylaw 970-17 Bylaw 971-17 Amendment to 2017 Tax Rate Bylaw 970-17 2017 Revised General Municipal Tax Revenue Budget Analysis 6
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2017 TAX RATE BYLAW AMENDMENT 971-17 TOWN OF HIGH LEVEL AMENDMENT TO 2017 TAX RATE BYLAW NO. 970-17 BYLAW NO. 971-17 A BYLAW OF THE TOWN OF HIGH LEVEL TO AMEND THE 2017 TAX RATE BYLAW NO. 970-17; BEING A BYLAW TO AUTHORIZE THE RATES OF TAXATION LEVIED AGAINST ASSESSABLE PROPERTY WITHIN THE TOWN OF HIGH LEVEL FOR THE 2017 TAXATION YEAR. WHEREAS the Town of High Level has prepared and adopted detailed estimates of the municipal revenues and expenditures as required, at the council meeting held on December 12 th, 2016; and WHEREAS, the estimated municipal expenditures and transfers set out in the budget for the Town of High Level for 2017 total $13,180,962; and WHEREAS, the estimated municipal revenues and transfers from all sources other than taxation is estimated at $8,816,952 and the amount of $110,586 raised by Payments in Lieu of Taxes(PILT) and the balance of $4,253,424 is to be raised by general municipal taxation; and Whereas, the requisitions are: ALBERTA SCHOOL FOUNDATION FUND (ASFF) Residential/Farmland $591,152 Non-Residential $666,210 $1,257,362 LODGE REQUISITION Lodge Requisition $84,474 ; and Whereas, the Council of the Town is required each year to levy on the assessed value of all property, tax rates sufficient to meet the estimated expenditures and the requisitions; and 10
2017 TAX RATE BYLAW AMENDMENT 971-17 Whereas, the Council is authorized to classify assessed property, and to establish different rates of taxation in respect to each class of property, subject to the Municipal Government Act, Chapter M26, Revised Statutes of Alberta, 2000; and Whereas, the assessed value of all taxable property in the Town of High Level as shown on the assessment roll is: Assessment Residential/Farmland $222,955,780 PILT Residential $4,026,330 Senior $0.00 Non-Residential $140,813,010 PILT Non-Residential $5,194,230 Machinery & Equipment $40,577,050 Linear $21,118,060 $434,684,460 NOW THEREFORE under the authority of the Municipal Government Act, the Council of the Town of High Level, in the province of Alberta, enacts as follows: 1. That the Chief Administrative Officer is hereby authorized to levy the following rates of taxation on the assessed value of all taxable property as shown on the Assessment Roll of the Town of High Level: General Municipal Tax Levy Assessment Tax Rate Residential/Farmland $2,088,182 $222,955,780 9.3659 PILT Residential $37,710 $4,026,330 9.3659 Senior $0.00 $0.00 9.3659 Non-Residential $1,516,415 $140,813,010 10.7690 PILT Non-Residential $55,937 $5,194,230 10.7690 Machinery & Equipment $436,974 $40,577,050 10.7690 Linear $227,420 $21,118,060 10.7690 Total General Municipal $4,362,638 $434,684,460 Alberta School Foundation Fund Tax Levy Assessment Tax Rate Residential/Farmland $609,292 $226,503,500 2.6900 Non-Residential/Linear $648,070 $163,670,950 3.9596 Total School Foundation Fund $1,257,362 $390,174,450 11
2017 TAX RATE BYLAW AMENDMENT 971-17 Lodge Requisition Tax Levy Assessment Tax Rate Residential/Farmland $44,419 $226,503,500 0.1961 Senior $0.00 $0.00 0.1961 Non-residential $27,956 $142,552,890 0.1961 Machinery & Equipment $7,958 $40,577,050 0.1961 Linear $4,141 $21,118,060 0.1961 Total Lodge $84,474 $430,751,500 1. This bylaw may be cited as 971-17 Amendment to 2017 Tax Rate Bylaw No.970-17 2. That this bylaw shall take effect on the date of the third and final reading. READ A FIRST TIME in Council this 15 th Day of May, 2017. READ A SECOND TIME in Council 15 th Day of May, 2017. READ A THIRD TIME in Council 15 th Day of May, 2017. SIGNED AND PASSED THIS th Day of May, 2017. Mayor Municipal Clerk 12