City of Pitt Meadows. Taxation - Townhall Meeting February 19, 2015

Transcription

1 City of Pitt Meadows Taxation - Townhall Meeting February 19, 2015

2 Agenda Mayor s Welcome Property Tax Assessment Explained Budget & Business Planning Process Tax Calculation Process Budget Components 2015 Taxes & Utilities Beyond the 2015 Budget Questions/Comments?

3 Property Tax Assessment Explained Introduction: Mr. Raj Sandhu, Acting Assessor BC Assessment, Fraser Valley Region

4 Budget & Business Planning Process

5 Strategic Plan Articulates Council s high level goals and priorities Department Business Plans Identifies department tasks /actions that meet the Strategic Plan & maintain dayto-day operations and service levels Five Year Financial Plan (Budget) Identifies the resources needed to achieve those plans that is then used to set the tax rate

6 Provision of Services Budget Driver Essential Services: Police, Fire, Water, Sewer, Drainage, Diking, Roads Priority Services: Parks, Recreation, Library, Bylaw Enforcement, Licensing, Arts, Culture, Heritage, Planning, Garbage/Recycling, Enviro/Sustainability Management, Economic Development Support Services: Communications, Human Resources, Payroll, Finance, Administration, Legislative Services, Information Technology, Facilities

7 Tax Calculation Process

8 Tax Calculation Three factors that determine the amount of tax each home pays: Variable A - Tax revenue needed to balance the budget & fund services (determined by Council) Variable B - Total assessed values of all properties (Provided by BC Assessment) Variable C - Mill Rate generated by dividing the revenue needed by the assessed value Tax Revenue A Assessed Values B / 1,000 Mill Rate C

9 Assessed Value Changes Assessed value increases DO NOT bring revenue windfall to municipalities Council determines the amount of tax to collect not BC Assessment Once Council sets the tax revenue, this revenue variable is fixed When the assessed values rise, the mill rate is decreased to generate the same level of taxation approved by Council Tax Revenue Assessed Values Mill Rate A / (B/1,000) = C

10 Class Description Tax Class # Revenue ($) (%) Residential 1 7,010 10,040, Utilities , Major Industry , Light Industry , Business & Other ,329, Recreation/Non Profit , Farm , TOTALS 16,192, %

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13 School $941 Municipal Taxes $1,773 44% External Agencies $1,149 29% Municipal Utilities $1,075 27% Water $438 Translink $152 BC Assessment $28 GVRD $28 Diking $2 Drainage $99 Sewer $283 Solid Waste $253

14 Budget Components

15 Operating Costs: Direct & ongoing tax impact Typically day-to-day costs of running the City Wages Materials/Supplies Training & Professional Development Heat & Light Insurance

16 Capital Costs: Indirect tax impact Funding sources that DO affect tax Annual Reserve Contributions Debt Funding sources that DON T affect tax Road Use Levies Development Cost Charges Grants

17 Reserves: For asset/infrastructure replacement Reduce/eliminate the need for borrowing and related costs Operating Reserves - one-time costs can be managed without taxation impact

18 Where Does the Money Come From? Taxation 75% Fees & Charges 21% Reserve Transfers 2% Grants 2%

19 2015 Taxes & Utilities Where are we at?

20 Taxation: Single Family Home Cost Drivers Amount $ Tax $ Tax % Council $ -3,800 $ % Administration & Emergency Programs 2, % Human Resources, IT & Communications 37, % Fire & Rescue Services 20, % Finance & Facilities % Operations & Development Services 28, % City Departments $ 46,200 $ % Library 37, % Parks & Leisure 42, % Police - RCMP 133, % Service Delivery Partners $ 213,700 $ % Taxes from New Development - Growth -500, % Building Replacement Reserve 247, % Capital Reserves 105, % Operating Reserves 193, % Corporate Finance (Port PILT, Tax Penalties, 1% Utility, Ec Dev Fee) -305, % Corporate Finance $ -259, % PROPOSED Tax Increase $ 0 $ %

21 Utilities: Single Family Home Service Type 2014 Budget 2015 Budget $ Variance Sanitary Sewer Services $ 283 $ 275 $ -8 Water Services Storm Drainage Services Diking Solid Waste Services Subtotal (User Fee Charges) $1,012 $1,007 $ -5 Storm Drainage Services (mill rate) Total Utility Charges $1,075 $1,075 $ 0

22 Combined: Single Family Home Business Unit 2014 Budget 2015 Budget $ Variance User Fee/Tax Impact Corporate Finance $ -143 $ -227 $ % Operating Reserves % Capital Reserves % Building Replacement Reserve % 1% Strategic Asset Levy % City Departments % Library % Parks & Leisure % Police - RCMP % Subtotal - Before Utilities $ 1,773 $ 1,773 $ % Storm Drainage (mill rate) % User Fee Utilities (Drainage, Water, Sewer, Dyking, Solid Waste) 1,012 1, % Total Property Charges $ 2,848 $ 2,848 $ %

23 Combined: Single Family Home $2,875 $2,850 $2,848 $2,848 $2,825 $2,800 $2,775 $11 $26 $5 $4 $4 $14 ($5) $5 $2,750 ($84) $20 $2,725 $2,700

24 Where Does the Money Go? Police 20% Capital Reserves 21% Salaries & Wages 19% Supplies & Equipment 1% Training & Development 1% Parks & Leisure 10% Library 5% Contracts & Fees 12% Arena 6% Vehicles 2% Utilities 1% Debt 2%

25 Service Value Library 128 Fire & Rescue Services 136 Public Works, Dev Svcs 188 Parks & Leisure Services 247 General Government 101 Police Services 516 Transfer to Reserves 457 Diking 2 Drainage Utility 107 Solild Waste 253 Sewer Utility Water Utility ,848 Total Car Insurance 1,800 Cable TV (HD Basic) 600 Telephone & Internet 900 Home Security System 350 Home Insurance Gas & Electricity 850 2,250

26 Service Value 2014 Municipality Taxes Utilities Total Charges West Vancouver 3, ,237 North Vancouver District 2,469 1,473 3,942 White Rock 3, ,760 New Westminster 2,534 1,196 3,730 Port Moody 2, ,638 Vancouver 2,541 1,030 3,571 Coquitlam 2,244 1,093 3,337 Burnaby 2,184 1,133 3,317 Richmond 2,113 1,117 3,230 North Van, City of 2,148 1,057 3,205 Port Coquitlam 2, ,957 Maple Ridge 2, ,935 Delta 2, ,892 Langley Township 1,754 1,126 2,880 Pitt Meadows 1,835 1,012 2,848 Surrey 1,601 1,173 2,774 Langley City 1, ,730

27 Beyond The 2015 Budget

28 Revenues $ 23,582,200 $ 24,396,800 $ 25,165,000 $ 25,779,900 City Departments 8,700,100 8,815,600 8,990,700 9,074,500 Service Delivery Partners 9,884,400 10,299,100 10,602,700 10,839,200 Reserve Provisions 4,997,700 5,282,100 5,571,600 5,866,200 PROPOSED Increase - Tax % 3.42% 3.14% 2.99% 2.89%

29 Expenditure Controls Increase Non-Tax Revenues Service Accessibility Service Level Adjustments

30 Questions, Comments, Suggestions???