COUNTY OF WELLINGTON 2017 Budget and 2017-2021 Five Year Plan Presentation to Wellington County Council January 9, 2017
Agenda Part 1: Introduction 2016 Assessment Update Effects of Re-Assessment Shifts amongst property tax classes Inter-municipal shifts Impact of Gravel Pit Appeals 2 2017 Budget and 2017-2021 Five Year Plan
Agenda Part 2: 2017 Budget and Five-Year Plan Overview and 2017 Budget Process Changes to the five-year plan since November Capital Financing Reserves and Reserve Fund Balances & Activity County Debt Management and Forecast Capital Budget Details Operating Budget Forecast Recap and wrap-up 3 2017 Budget and 2017-2021 Five Year Plan
Purpose of today’s meeting Provide a background of County’s taxes, finances and assessment base Review 2017 Budget Process To provide Council with an overview of the 2017 Budget and the 2017- 2021 five-year plan in advance of January Committee meetings Opportunity for Council to review and discuss service levels and proposed capital projects 4 2017 Budget and 2017-2021 Five Year Plan
2016 Property Assessment Valuation Update In Ontario, property assessments are updated every four years The 2016 assessment update reflects a valuation date of January 1, 2016 Assessment in effect for the 2017-2020 property tax years Impact on property owners Increases in assessment will be phased in over a four-year period Decreases in assessment take place immediately Impact on municipalities Results in shifts amongst property tax classes Inter-municipal shifts for share of County taxes 5 2017 Budget and 2017-2021 Five Year Plan
Unweighted assessment by property tax class: 2017 (Share of Property Values in Wellington) - Effect of Reassessment Industrial (2.01%) (-0.26%) Commercial Pipeline (0.24%) (4.68%) (-0.01%) (-0.10%) Farm & MF (22.08%) (+2.02%) Multi-Res (0.70%) (-0.06%) Residential (70.29%) (-1.59%) 6 2017 Budget and 2017-2021 Five Year Plan
Weighted assessment by property tax class: 2017 (Share of Property Taxes in Wellington) - Effect of Reassessment Industrial (5.28%) Pipeline (0.60%) (-0.55%) (-0.01%) Commercial (7.66%) (0.00%) Farm & MF (6.19%) (+0.69%) Multi-Res (1.46%) (-0.10%) Residential (78.81%) (-0.03%) 7 2017 Budget and 2017-2021 Five Year Plan
Weighted assessment by Member Municipality: 2017 (Share of County levy) - Effect of Reassessment Wellington North (9.55%) (+0.17%) Puslinch (14.70%) (-0.66%) Minto (6.01%) (+0.03) Mapleton (9.78%) (+0.32%) Guelph Eramosa (16.18%) (+0.05%) Centre Wellington Erin (15.18%) (28.60%) (-0.18%) (+0.27) 8 2017 Budget and 2017-2021 Five Year Plan
Gravel Pit Appeal Settlements The assessment of gravel pits has been under appeal since the 2009 taxation year In 2016, MPAC and the OSSGA came to an agreement to settle legacy appeals from the 2009 to 2016 taxation years Previous assessment methodology Active areas of aggregate operations were valued at industrial land rates on a per acre basis of the total site area – classified and taxed as industrial Most County pits were valued between $40,000 - $50,000/acre depending on the size of the pit Other areas classified and taxed based on the use of the land (farm or residential) New methodology Active areas of aggregate operations are now valued at class 5 farmland rates plus “site preparation costs” to a maximum value of $15,000/acre – classified and taxed as industrial Most County pits are now valued at less than $10,000/acre 9 2017 Budget and 2017-2021 Five Year Plan
Gravel Pit Appeal Settlements Results of the settlements has been unprecedented taxation losses to the County and its member municipalities – Puslinch hit the hardest Wellington County municipalities have lost more than $6 million in property tax write-offs and legal fees as a result of the settlements in 2016 County share of loss & legal fees is over $3 million Weighted assessment losses for 2017 are significant County lost 0.51% in weighted assessment – equivalent to $457,045 in annual property tax revenue Puslinch lost 3.03% in weighted assessment – equivalent to $152,065 in local property tax revenue annually (average residential property to pay $64.43 extra in property tax to cover gravel pit write-offs) Will result in equivalent rates of property tax increases to other property tax classes for the municipality to “break even” 10 2017 Budget and 2017-2021 Five Year Plan
Summary of Tax Loss For Assessment Cycles: 2009-2012 & 2013-2016 24 Legacy Appeal Properties Tax Loss Share Muncipality Original CVA Revised CVA Overall Tax Loss County Township Education Puslinch (14)* 482,742,413 271,042,480 -$4,954,548 -$ 2,417,346 -$ 639,847 -$ 1,897,356 Guelph Eramosa (1) 25,217,882 21,174,632 -$161,635 -$ 67,240 -$ 24,768 -$ 69,626 Erin (4) 97,238,623 68,120,485 -$559,323 -$ 257,615 -$ 103,516 -$ 198,190 Centre Wellington (2) 13,265,450 11,109,995 -$58,961 -$ 25,543 -$ 11,708 -$ 21,710 Minto (2) 13,360,398 11,775,608 -$53,835 -$ 19,885 -$ 16,275 -$ 17,675 Mapleton (1) 3,388,763 3,322,763 -$2,686 -$ 1,069 -$ 567 -$ 1,049 TOTAL 635,213,529 386,545,963 -$5,790,987 -$ 2,788,699 -$ 796,680 -$ 2,205,608 Legal Fees and Consulting Services -$221,484 -$ 221,484 GRAND TOTAL -$6,012,471 -$ 3,010,182 * Includes Capped Properties 11 2017 Budget and 2017-2021 Five Year Plan
2012 Base Year Valuation: Gravel Pit Example 1: Puslinch Gravel Pit Property with Industrial, Residential and Exempt Original Valuation Method – from 2012 Total Land Value 94 acres Apportionment Value (CVA) Tax Class Taxes Paid (2016 Rates) $ 557,650 IT $ 19,197 $ 915,150 RT $ 9,127 $ 43,200 E $ - $ 1,516,000 $ 28,324 12 2017 Budget and 2017-2021 Five Year Plan
2016 Base Year Valuation: Gravel Pit and Single Family Dwelling Example 1: Gravel Pit - New Valuation Method - 2016 Licensing/Preparation Costs Class 5 Farm Land Total Land Rate Total Land Apportionment Value (CVA) Tax Class Taxes Paid (2016 Rates) Industrial 13 acres $5,000/acre $4,215/acre $9,215/acre $ 119,795 $ 134,600 IT $ 4,634 Residential 41 acres $5,000/acre $4,215/acre $9,215/acre $ 377,815 $ 417,100 RT $ 4,160 Farm 16 acres (class 1)* n/a $15131/acre $ 242,096 $ 281,500 RT $ 2,808 Farm 24 acres n/a $2,408/acre $ 57,792 $ 57,800 E $ - Total Land Value 94 acres $ 797,498 $ 891,000 $ 11,601 *OMAFRA to advise on farm tenant Example 2: Puslinch Single Family Detached Actual Area 1.09 acres Property Details Other Structures Year Built Apportionment Value (CVA) Tax Class Taxes Paid (2016 Rates) 2667 Square feet Attached Garage 2009 $ 1,183,000 RT $ 11,799 3 bedrooms Outdoor Pool 2 1/2 baths $ 1,183,000 $ 11,799 Central Air Fireplace 13 2017 Budget and 2017-2021 Five Year Plan
Agenda Part 2: 2017 Budget and Five-Year Plan Overview and 2017 Budget Process Changes to the five-year plan since November Capital Financing Reserves and Reserve Fund Balances & Activity County Debt Management and Forecast Capital Budget Details Operating Budget Forecast Recap and wrap-up 14 2017 Budget and 2017-2021 Five Year Plan
2017 Budget Process January 9, 2017 presentation to Council Budget reviews at Committee and Board meetings next two weeks Full budget package circulated to Council by January 13 AF&HR review of budget on January 17 AF&HR recommendations considered by Council on January 26, 2017 15 2017 Budget and 2017-2021 Five Year Plan
5-Year Plan Outlook in November 5-Year Plan projected a 3.4% budget increase for 2017 Increases from 3.9% to 4.8% in 2018-2021 16 2017 Budget and 2017-2021 Five Year Plan
Changes to the 5-year plan Reduced OMPF grant – 2017 allocation is $368K lower than 2016 (levy increase of 0.4%) Assessment growth finalized at 1.24% - 0.65% higher than estimated in November (levy reduction of 0.65%) Roads field staff reallocated $200,000 net salaries and benefits to operating from capital (levy increase of 0.2%) A number of other smaller changes 17 2017 Budget and 2017-2021 Five Year Plan
Highlights of the revised 5 year plan Projected tax increase of 3.3% in 2017 and a range of 3.8% to 4.4% from 2018-2021 Estimated 2017 operating expenditures and transfers of $200.4 million $163.4 million capital investment over 5 years $31.6 million in 2017 $22.3 million in new debt issues over 5 years 18 2017 Budget and 2017-2021 Five Year Plan
2017-2021 Capital Financing Recoveries, 9.9% Debentures, 13.6% Development Subsidy, 7.0% Charges, 4.6% Federal Gas Tax, 8.6% Current Revenues, Reserves, 19.7% 36.5% 19 2017 Budget and 2017-2021 Five Year Plan
2017-2021 Capital Budget Highlights 56.2% of capital spending will be funded from tax levy and reserves $25.6 million -15.6% funded through Federal and Provincial subsidies $14.1 million in Federal Gas Tax $7.5 million in OCIF (2020 and 2021 forecasted) $3.9 million in Housing (SHIP and Affordable Housing) $22.3 million - 13.6% to be funded through Debt $18.8 million tax supported $3.5 million recovered from development charges $7.6 million – 4.6% funded by Development Charges 20 2017 Budget and 2017-2021 Five Year Plan
Recommend
More recommend
