1. How do Pickering s taxes compare to other Durham Region lakeshore municipalities?

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1 Budgeting Your City Frequently Asked Questions 1. How do Pickering s taxes compare to other Durham Region lakeshore municipalities? Pickering has held the lowest tax rate among Durham Region lakeshore municipalities for 17 years. 2. How is Pickering using the Federal Gas Tax Funds it receives from the Federal Government? Each year, capital projects related to sidewalks, local roads, bridges and community energy systems are funded in part through this program. Visit pickering.ca/gastax for more information.

2 3. What are some of Pickering s proposed 2015 budget highlights? These are some of the key projects, initiatives and services proposed in the 2015 Budget and are subject to budget approval on March 5, Special Property Tax Levy Maintaining and Improving our Roads and Bridges A special tax levy is a common tool used by cities to fund public projects or service needs over and above day-to-day budget pressures. We are proposing to Council a 1% Special Property Tax Levy starting in 2015 to help repair and improve our roads and bridges as identified in our 2013 Roads and Bridges Asset Management Plan. The plan calls for the City to invest $100 million over the next 10 years. A 1% increase on a home assessed at $400,000 would be an extra $15.00/year added to the property tax bill. Are you in support of this? Share your thoughts on this, and more in our short feedback survey! Tree Canopy Replacement The 2013 ice storm, along with the emerald ash borer (EAB) has greatly impacted the City s tree canopy. The storm left many trees in a vulnerable state, and staff continue to prioritize maintenance requirements, proposing $1 million for tree restoration efforts. The program will focus primarily on the restoration of the tree canopy on municipal boulevards, but will also explore opportunities to replace trees in parks. EAB is an invasive pest that attacks and kills ash trees in North America, and Infestation and ash mortality is expected to affect all of the City s ash trees. If detected early enough, the City will treat selected ash trees in an effort to prolong their lifespan and sustain the benefits of a mature tree canopy by injecting a product called TreeAzin, which can prevent the deadly effects of the ash borer. This accelerated restoration program will allow us to remove and replace ash trees with other suitable species and devote the resources necessary to replenish our urban forest canopy.

3 Fire Services Fleet Addition Pickering Fire Services takes great pride in preventing and protecting the community from fire, life-threatening emergencies and dangerous conditions. The City is proposing $1.1 million for one aerial ladder apparatus to replace the 2001 model that is currently in service. The new aerial apparatus will be built to the latest standards taking into account public safety, fire crew safety and environmental factors. It will be designed to have modern efficient lighting and sound systems to safely warn motorists during responses, transport firefighters safely to fire scenes and meet modern emission standards and fuel economy ratings. The aerial ladder truck will be a vital piece of equipment for fighting fires at multilevel buildings and will provide an anchor point for high angle rescue operations, and access to roofs and upper levels for operations at fire scenes. Mobile App As mobile apps become an increasingly dominant form of digital interaction, the City is proposing funds to create an easy-to-use app that would provide multiple services into one seamless user experience. Residents would be able to access information on events, news and announcements, service disruptions, public notices and more, wherever and whenever they like. Golf Simulator Staff propose to repurpose one racquetball court at the Pickering Recreation Complex into a Golf Studio via golf simulator technology. This project will allow us to introduce a new and trending recreation service that will attract new customers, generate new revenues, increase community participation, and will not involve any additional staff resources in its delivery. Due to the declining racquetball membership at the Pickering Recreation Complex, this project is anticipated to have limited impact to existing racquetball members as court usage falls well short of capacity.

4 4. How do Pickering s recent tax increases compare to other municipalities? The 2014 budget increase of 3.75% was in line with the average increases of municipalities within Durham Region and funded key projects such as: Beverly Morgan Park Enhancement the park located behind Pine Ridge Secondary School had its natural turf field replaced with an artificial turf field, providing a durable playing field and an extended playing season. The field was constructed with colour coded field lines to accommodate football, soccer, and rugby, and also received its first electronic score board. Whitevale Bridge replacement the Whitevale bridge is the main connection between the east and west sides of the Hamlet of Whitevale. William Jackson Drive reconstruction from east of Urfe Creek to Taunton Road. 5. How do Pickering s partnerships contribute to the quality of life for those who live, work and play here? The City collaborates with local businesses and community groups to deliver innovative projects, infrastructure and programs and services to its diverse population. These partnerships enable the City to enhance its service provision while remaining fiscally responsible to residents and businesses. Recently, the City and the Pickering Soccer Club partnered to create the Pickering Soccer Centre located at 1975 Clements Road. It includes a full-size soccer pitch under an ait-supported dome (which can be split into quarters for different activities), attached change rooms, meeting rooms, and administration facilities for the club. The $7.2 million facility opened in November Why are the property taxes on a similar sized home in Toronto often lower than a house in Pickering? There are three main reasons for this:

5 a. Special Provincial Funding since amalgamation in 1998, the Province has given the City of Toronto millions of dollars in special grants and loans - funding which was not provided to any other municipality in Ontario. b. Toronto Business Taxes Subsidize Residential Taxes Toronto has historically taxed their businesses at much higher rates than other municipalities, which allows Toronto to keep residential taxes lower. A commercial business in Toronto pays 3.2 times more in taxes than a homeowner, while in Durham Region that same business only pays 1.5 times more. We offer competitive tax rates as incentive for businesses to start up or relocate here. Essentially Toronto s huge business base subsidizes the residential property tax base. c. Special Taxing Powers The Province has granted Toronto special taxing powers, such as the Land Transfer Tax, which also allows it to keep its residential property taxes lower. The Toronto Land Transfer Tax is equivalent to a minimum of a 10% property tax decrease. In other words, without this special tax tool, Toronto taxes would have to increase by at least 10% to maintain its current service levels. d. Every day, thousands of individuals commute to Toronto from the 905 area. The City of Toronto retains or keeps the property taxes associated with these commercial office towers and the 905 area has the expense of providing the various municipal related residential services such as parks, recreation and libraries. In other words, Toronto keeps the revenue and the 905 has the cost of providing the residential services. 7. Why are municipal tax rate increases often higher than the rate of inflation? Statistics Canada s Consumer Price Index (CPI) looks at the costs of consumer and household goods such as milk, bread and eggs. It does not reflect the cost increases that all municipalities face for expenditures such as contracted goods/services, insurance, building materials, asphalt, concrete, etc. Statistics Canada s Non-Residential Building Construction Cost Index, which the City must use to annually index development charges, is a more representative measure. In recent years, this index has shown inflationary increases well above CPI.

6 8. How can I get involved? Join us for the March 5, 2015 budget meeting, where you can watch the budget process unfold and learn more about the programs, services, and initiatives that are helping to shape our community. Provide your input for the 2015 budget via our online survey. us your questions or comments: customercare@pickering.ca.

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