2016-2018 BUDGET DRAFT 4 January 18, 2016 PROPOSED 2016-2018 - PowerPoint PPT Presentation

2016-2018 BUDGET DRAFT 4 January 18, 2016 PROPOSED 2016-2018 BUDGET AND BUSINESS PLAN

2016-2018 Business Plan PROPOSED 2016-2018 BUDGET AND BUSINESS PLAN and Budget Corporate Overview COMMITTEE OF THE WHOLE PRESENTATION JANUARY, 18 2016 Page 2 of 68

Page # Description 3 Tax Policy and Assessment 32 Tax Policy Recommendations 33 Fees and Charges 48 Fees and Charges Recommendations 49 Operating Budget – Draft 4 51 Operating Changes from Draft 3 Table of 56 Capital Budget Summary - Updated 57 Reserves - Updated Contents 59 Capital Projects – Deferrals, Changes and Updates 60 Debt Impacts 64 Tax Impact – Typical Property 65 Impact by Department 66 Monthly Tax Impact – Typical Residential Taxpayer 67 Recommendations Page 3 of 68 PROPOSED 2016-2018 BUDGET AND BUSINESS PLAN

Tax Policy and 2016 – TAX IMPACT Assessment Page 4 of 68 PROPOSED 2016-2018 BUDGET AND BUSINESS PLAN

Legislative Authority  Municipal Act – outlines policies, protection, penalties, jurisdiction and calculations for taxation  Assessment Act – regulates the approach to assessment  establishes the Municipal Property Assessment Corporation (MPAC) as being the body with jurisdiction over determination of assessed values  Funded by Municipalities - $50,254 for Prescott in 2016  Assessed based upon Current Value Assessment (selling prices for similar properties in the area – for residential)  Initial reviews done by MPAC  Appeals heard by the Assessment Review Board Page 5 of 68

Key Components of Property Taxes Tax Levy – Difference between Projected Expenditures and Revenues from other 1) sources (eg. Provincial subsidies, fees for municipal services, permits)  Assessment – MPAC - Current Value of the property at 2) Divided among various classes of properties  Tax Ratios 3) Ratio in comparison to the Residential Class which is set at 1.0  Weighted Assessment determined by Tax Ratio multiplied by assessment  Changes the distribution of the tax burden between classes  Tax Rates – amount of tax per $1 of Assessment 4) Restrictions 5) Levy Restriction – imposed on classes with tax ratios exceeding provincial average 1) Capping Program – changes introduced for 2005 taxation year 2) Page 6 of 68

7 Municipal Tax Policy  Levy  Taxation determined by both local municipalities and the county for their own purposes – By-law must be passed by April 30 th each year  Tax Ratios  Represents Apportionment of the tax burden between classes  Weighted assessment determined by tax ratio for class multiplied by the non- weighted assessment  Capping – Restricted Classes assessment restrictions - No longer applicable for the Town Page 7 of 68

How Property Taxes are Calculated Education Rates Property’s Property = X Assessed Taxes Value Municipal Rates Page 8 of 68

Levy Restrictions Apply to Certain Classes  Property tax ratios can shift to Restricted Classes  offset the increases of assessments on residential to be borne by the three business classes (changes in ratios require regulation)  Modification to the levy restriction to allow municipalities to pass on to business classes to a maximum of 50% of the increase passed on to residential  Eg. If the Town Levy was to increase by 5%, 2.5% could be levied against the industrial class Page 9 of 68

How are Properties Assessed?  Municipal Property Assessment Corporation  Current Value Assessment  Sales Comparison Approach - Residential  Income Approach – Rental Apartments, Retail and Office Buildings  Cost Approach – Industrial Properties Page 10 of 68

MPAC Reassessment Schedule Page 11 of 68

Within each Realty Tax Class (RTC), there are 30 RTQ’s (Realty Tax Qualifiers (RTQ) and 304 Property Codes Eg. RTQ – T = Taxable at Full Rate Property Code 301 = Single Family Home (not on water) Page 12 of 68

Municipal Taxation Page 13 of 68

2016 %age Of Current Value Assessment 2012 Assessment Distribution (Taxable & PIL) Prescott Town Other 2% Commercial 19% Multi-Residential 5% Residential 74% Other Includes Industrial, Pipeline Page 14 of 68

Assessment by Class (2013-2016) Property 2012 2013 2014 2015 2016 Class Residential 223,400,870 231,229,632 240,512,507 249,795,352 259,078,200 Multi-Residential 14,431,381 15,143,536 15,860,691 16,577,845 17,295,000 Commercial 55,303,699 53,820,277 54,688,652 55,557,029 56,425,400 Other 7,226,318 7,396,564 7,569,710 7,742,855 7,916,000 Total 300,362,268 307,590,009 318,631,560 329,673,081 340,714,600 Page 15 of 68

2016 %age Of Current Value Assessment 2013-2016 Assessment Patterns (Taxable & PIL) Prescott Town 400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 Residential Multi-Residential Commercial Other Total 2012 2013 2014 2015 2016 Page 16 of 68 Other Includes Industrial, Pipeline

Changes in Assessment (2013 - 2016) Property Class (RTC) 2015 Net 2016 2013-2016 2015 Net 2016 2013- Growth Value/ Value/ Growth Value/ 2016 Equity Equity Equity Value/ Change Change Equity Taxable 1,899,453 9,282,223 35,674,830 0.77% 3.72% 15.97% R - Residential 0 717,155 2,863,619 0.00% 4.33% 19.84% M - Multi-Residential -256,245 652,823 259,507 -0.59% 1.52% 0.60% C - Commercial 983 65,048 260,194 0.03% 1.92% 8.16% X - New Commercial 0 15,250 61,000 0.00% 4.85% 22.68% S - Shopping Centre -25,875 156,303 622,312 -0.39% 2.35% 10.07% I - Industrial 1,970 16,842 67,370 0.18% 1.53% 6.43% P - Pipeline Total Taxable 1,620,286 10,905,644 39,808,832 0.51% 3.40% 13.64% Page 17 of 68

Additional Taxation from Growth 2015 Total 2015 Total Year Difference Taxation Based on End Taxation (1) Between Returned Roll Returned Roll and Year End CVA Municipal Class CVA Municipal CVA Municipal $ % $ % Taxable Residential 247,868,024 3,141,658 249,767,477 3,165,733 1,899,453 0.77% 24,075 0.77% Multi-residential 16,577,845 390,161 16,577,845 390,161 0 0.00% 0 0.00% Pipelines 1,096,188 20,999 1,098,158 21,037 1,970 0.18% 38 0.18% Commercial Total Taxable 46,891,341 1,166,150 46,636,079 1,159,744 -255,262 -0.54% -6,406 -0.55% Industrial Total Taxable 6,670,572 217,820 6,644,697 217,259 -25,875 -0.39% -561 -0.26% Total Taxable 319,103,970 4,936,788 320,724,256 4,953,934 1,620,286 0.51% 17,146 0.35% Page 18 of 68

Changes in Assessment (2013 - 2016) 2013-2016 Assessment Growth (Taxable & PIL) Prescott Town 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Residential Multi-Residential Commercial Other Total -500,000 -1,000,000 2013 2014 2015 Page 19 of 68 Other Includes Industrial, Pipeline

2016 Number of Properties - Assessment Change by Property Class $ CHANGE Residential Commercial Industrial Total Decreases 614 135 12 761 0 -100 889 10 0 899 100 -300 47 5 0 52 300-500 1 3 0 4 500-700 2 3 0 5 Over $700 1 0 1 2 Total number of Properties 1,554 156 13 1,723 Page 20 of 68

2016 Average $ Change- Assessment by Property Class Avg$Change Residential Commercial Industrial Average Decreases -$20 -$179 -$202 -$50.75 0 -100 $21 $25 $0 $21.25 100 -300 $170 $216 $0 $174.38 300-500 $310 $365 $0 $351.25 500-700 $627 $592 $0 $606.00 Over $700 $1,839 $0 $909 $1,374.00 Avg$Change $12 -$128 -$116 -$1.90 Page 21 of 68

2016 Total $ Change- Assessment by Property Class Total$Change Residential Commercial Industrial Total Decreases -$12,096 -$24,106 -$2,419 -$38,621 0 -100 $18,853 $248 $0 $19,101 100 -300 $7,987 $1,081 $0 $9,068 300-500 $310 $1,095 $0 $1,405 500-700 $1,253 $1,777 $0 $3,030 Over $700 $1,839 $0 $909 $2,748 Total$Change $18,146 -$19,905 -$1,510 -$3,269 Page 22 of 68