ADMINISTRATIVE REPORT

Date: May 8, 2000

Author / Local: Ken Bayne / 7223

RTS No: 1493
CC File No: 113/1552

Council: May 16, 2000

TO Vancouver City Council

FROM: Director of Finance

SUBJECT: Adoption of Rating Bylaws and Averaging Resolutions

RECOMMENDATION

A. THAT Council approve the 2000 Rating Bylaw establishing the City's general purpose property tax rates.

B. THAT Council approve the 2000 Rating Bylaw for the property tax requisition of the Greater Vancouver Regional District.

C. THAT Council approve the resolutions attached as Appendices B through E, adopting adjusted tax rates for the Provincial Schools, the B.C. Assessment Authority, the Municipal Finance Authority and the Greater Vancouver Transportation Authority levies, pursuant to the Vancouver Charter and the Averaging Bylaw No. 8177 adopted by Council on March 28, 2000.

GENERAL MANAGER COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of A, B and C.

COUNCIL POLICY

The Vancouver Charter requires that Council adopt the final operating budget as submitted by the Director of Finance as a formal resolution. That approval was given by Council on May 4, 2000.

The Vancouver Charter also requires that Council adopt an annual rating bylaw establishing general purposes property tax rates for each class of property in the City and the amount to be raised as the City's general purpose levy for the year.

Legislation governing the Greater Vancouver Regional District requires that Council approve a rating bylaw establishing the tax rate for each class of property in the City to raise the requisition of the district in the current tax year.

On March 28, 2000, Council approve the averaging of taxable values for Residential (Class 1) and Commercial (Class 6) properties for the 2000 tax year. Under authority of the Vancouver Charter, Council must extend averaging to the calculation of taxes levied by other taxing authorities through resolutions which alter the tax rates of those authorities to make their tax rates revenue neutral. This is done by approving a resolution to vary the applicable tax rates established by those taxing authorities.

PURPOSE

This report recommends adoption of the City's annual rating bylaw, adoption of a rating bylaw for the Greater Vancouver Regional District and a series of resolutions to give effect to the assessment averaging program approved by Council on March 28, 2000.

BACKGROUND

On February 24, 2000, Council approved a resolution to blend property Class 5, Light Industrial, and Class 6, Business and Other, for the purposes of developing 2000 general purpose tax rate resulting in the same tax rate for each class. Council also approved at that time not to extend the three year land averaging to Class 05 for 2000.

On March 28, 2000, through passage of Bylaw 8177, Council approved a program of averaging the assessed value of land for Class 1, Residential, and Class 6, Commercial and Other, over three years for the purpose of calculating 2000 property taxes.

On May 4, 2000, Council approved a shift in the tax burden of approximately 1% of the 2000 general purpose tax levy, proportionataley from Class 2, Utilities, Class 4, Major Industrial, Class 5, Light Industrial, and Class 6, Business Other to Class 1, Residential, properties.

On May 4, 2000, Council approved a resolution adopting the revenue and expenditure estimates of the City for the 2000 budget year. This budget, totalling $612,653,300, provides for all of the revenues and expenditures of the City for 2000 and is based on a general purposes tax increase of 2.75%.

2000 GENERAL PURPOSES TAX LEVY

To balance the 2000 Operating Budget approved by Council, the general purposes tax levy is set at $368,985,106. The tax rates necessary to raise this amount, incorporating the 2000 Land Assessment Averaging Program, are shown below.

Class 2000 Tax Rates (per $1000 of value)
Residential (1) 2.99466
Utilities (2) 29.92134
Major Industry (4) 30.54048
Light Industry (5) 14.94131
Business and Other (6) 14.87354
Recreational Property/ Non-profit Organization (8) 3.10899
Farm (9) 3.10899

Before Council this day is a bylaw, 2000 Rating Bylaw: General Purposes Taxes, that will give effect to these tax rates.

OTHER TAXING AUTHORITIES

The following summarizes the property tax levies of the other taxing authorities whose levies appear on the City's tax bill. A summary of tax rates and tax levies for all taxing authorities is attached as Appendix A.

1. Provincial School Levy

The Provincial Government levies all school taxes in the province. The tax rates submitted by the Surveyor of Taxes generate the following 2000 tax levy, with 1998 comparisons:

Class	2000 Levy	1999 Levy
Residential	$150,137,302	$147,761,882
Utilities	$7,098,477	$6,971,311
Light Industry	$2,187,769	$1,924,557
Heavy Industry	$1,919,198	$1,106,075
Commercial	$131,182,770	$131,683,554
Seasonal	$402,268	$385,869
Farm	$249	$257
Total	$292,928,033	$289,833,505

2. Greater Vancouver Regional District

The GVRD requisition to the City is $9,484,247, representing a reduction of $345,243 or 3.5% from the 1999 level. A bylaw establishing tax rates for this levy is before Council this day.

3. BC Assessment Authority

The BC Assessment Authority has set tax rates that generate a tax levy of $11,571,698, and reduction of $87,498 or 0.7% from the 1999 level.

4. Greater Vancouver Transportation Authority (TransLink)

The Greater Vancouver Transportation Authority has set tax rates that generate $31,509,484, an increase of $59,298 or 0.2% from the 1999 level.

AVERAGING RESOLUTIONS

Approval of the land assessment averaging program in 1999 requires that the tax rates submitted by these other taxing authorities for Class 1, Residential and Class 6, Commercial and Other, be varied. Council approval of the attached resolutions (Appendices B to E) will complete this requirement.

CONCLUSION

Approval of the averaging resolutions and rating bylaws submitted to Council this day will complete the process of developing property tax rates and will allow the billing to proceed. Taxpayers can expect their tax bill to arrive during the first week of June. Property taxes are due by Wednesday July 5, 2000. Taxpayers have several options for paying their tax bill:

… At any chartered bank and several trust companies and credit unions
… Through electronic banking arrangements
… By dropping a cheque in the City Hall mail slot (12th Avenue entrance)
… In person at City Hall during regular business hours (Monday to Friday, 9 a.m. to 5 p.m.)

- - - - -

Appendix B

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to the School Act, the Surveyor of Taxes for the Province of British Columbia in each year levies a tax on the net taxable value of all land and improvements in the City of Vancouver;

AND WHEREAS on April 13, 2000, the Lieutenant-Governor in Council levied the following tax rates on Class 1 - Residential and Class 6 - business and other:

Class 1 - residential 2.9631
Class 6 - business and other9.9000

being dollars of tax for each one thousand dollars of taxable value, for the 2000 taxation year, which when applied to the net taxable value of all land and improvements in the respective Classes in the City of Vancouver would raise the following sums:

Class 1 - residential $ 150,137,302
Class 6 - business and other $ 131,182,770

AND WHEREAS on March 28, 2000, pursuant to provisions of the Vancouver Charter, Council approved an adjustment of the net taxable value of land in Class 1 -residential and Class 6 - business and other, within the City of Vancouver;

AND WHEREAS the net taxable value and the adjusted taxable value pursuant to the Council by-law of March 28, 2000, of land in the above-noted Classes subject to taxation under the School Act for the year 2000 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 50,668,995,832 $ 52,601,469,761
Class 6 - business & other 13,250,784,856 13,310,897,596

AND WHEREAS Council is obliged to vary the rate set by the Lieutenant-Governor in Council in order to produce the same amount of revenue that would have been raised if the net taxable value of the specified land had not been adjusted;

NOW THEREFORE BE IT RESOLVED THAT, in the case of Class 1 - residential,the rate of 2.85424 is hereby substituted for the rate of 2.9631; and in the case of Class 6 -business and other, the rate of 9.85529 is substituted for the rate of 9.9000 for taxation pursuant to the School Act within the City of Vancouver for the 2000 taxation year.

Appendix C

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to the British Columbia Assessment Authority Act, the British Columbia Assessment Authority in each year levies a tax on the net taxable value of all land and improvements in the City of Vancouver (excluding property that is taxable for school purposes only by special act);

AND WHEREAS on March 10, 2000, the Authority, with the approval of the Lieutenant-Governor in Council, levied the following tax rates on Class 1 - residential and Class 6 - business and other:

Class 1 - residential 0.1271
Class 6 - business and other 0.3591

being dollars of tax for each one thousand dollars of taxable value, for the 2000 taxation year, which when applied to the net taxable value of all land and improvements in the respective Classes in the City of Vancouver (excluding property taxable for school purposes only by special act) would raise the following sums:

Class 1 - residential $ 6,439,969
Class 6 - business and other $ 4,738,492

AND WHEREAS on March 28, 2000, pursuant to provisions of the Vancouver Charter, Council approved an adjustment of the net taxable value of land in Class 1 -residential and Class 6 - business and other, within the City of Vancouver;

AND WHEREAS the net taxable value and the adjusted taxable value pursuant to the Council by-law of March 28, 2000, of land in the above-noted Classes subject to taxation under the British Columbia Assessment Authority Act for the year 2000 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 50,668,523,432 $ 52,600,997,361
Class 6 - business & other 13,195,465,856 13,255,586,963

AND WHEREAS Council is obliged to vary the rate set by the British Columbia Assessment Authority in order to produce the same amount of revenue that would have been raised if the net taxable value of the specified land had not been adjusted;

NOW THEREFORE BE IT RESOLVED THAT, in the case of Class 1 - residential, the rate of 0.12243 is hereby substituted for the rate of 0.12710; and in the case of Class 6 -business and other, the rate of 0.35747 is substituted for the rate of 0.35910 for taxation pursuant to the British Columbia Assessment Authority within the City of Vancouver for the 2000 taxation year.

Appendix D

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to the Municipal Finance Authority Act, the British Columbia Assessment Authority in each year levies a tax on the net taxable value of all land and improvements in the City of Vancouver (excluding property that is taxable for school purposes only by special act);

AND WHEREAS on March 30, 2000, the Authority, with the Approval of the Lieutenant-Governor in Council, levied the following tax rates on Class 1 - residential and Class 6 - business and other:

Class 1 - residential 0.0003
Class 6 - business and other 0.0002

being dollars of tax for each one thousand dollars of taxable value, for the 2000 taxation year, which when applied to the net taxable value of all land and improvements in the respective Classes in the City of Vancouver (excluding property taxable for school purposes only by special act) would raise the following sums:

Class 1 - residential $ 15,201
Class 6 - business and other $ 2,639

AND WHEREAS on March 28, 2000, pursuant to provisions of the Vancouver Charter, Council approved an adjustment of the net taxable value of land in Class 1 -residential and Class 6 - business and other, within the City of Vancouver;

AND WHEREAS the net taxable value and the adjusted taxable value pursuant to the Council by-law of March 28, 2000, of land in the above-noted Classes subject to taxation under the Municipal Finance Authority Act for the year 2000 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 50,668,523,432 $ 52,600,997,361
Class 6 - business & other 13,195,465,856 13,255,586,963

AND WHEREAS Council is obliged to vary the rate set by the Municipal Finance Authority in order to produce the same amount of revenue that would have been raised if the net taxable value of the specified land had not been adjusted;

NOW THEREFORE BE IT RESOLVED THAT, in the case of Class 1 - residential, the rate of 0.00029 is hereby substituted for the rate of 0.00030; and in the case of Class 6 -business and other, the rate of 0.00020 is substituted for the rate of 0.00020 for taxation pursuant to the Municipal Finance Authority Act within the City of Vancouver for the 2000 taxation year.

Appendix E

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to the Greater Vancouver Transportation Act, Section 29 (9), the Greater Vancouver Transportation Authority in each year levies a tax on the net taxable value of all land and improvements in the City of Vancouver (excluding property that is taxable for school purposes only by special act);

AND WHEREAS, the Authority has levied the following tax rates on Class 1 -residential and Class 6 - business and other:

Class 1 - residential 0.2096
Class 6 - business and other 1.4755

being dollars of tax for each one thousand dollars of taxable value, for the 2000 taxation year, which when applied to the net taxable value of all land and improvements in the respective Classes in the City of Vancouver (excluding property taxable for school purposes only by special act) would raise the following sums:

Class 1 - residential $ 10,620,123
Class 6 - business and other $ 19,469,910

AND WHEREAS on March 28, 2000, pursuant to provisions of the Vancouver Charter, Council approved an adjustment of the net taxable value of land in Class 1 -residential and Class 6 - business and other, within the City of Vancouver;

AND WHEREAS the net taxable value and the adjusted taxable value pursuant to the Council by-law of March 28, 2000, of land in the above-noted Classes subject to taxation under the Greater Vancouver Transportation Act for the year 2000 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 50,668,523,432 $ 52,600,997,361
Class 6 - business & other 13,195,465,856 13,255,586,963

AND WHEREAS Council is obliged to vary the rate set by the Greater Vancouver Transportation Authority in order to produce the same amount of revenue that would have been raised if the net taxable value of the specified land had not been adjusted;

NOW THEREFORE BE IT RESOLVED THAT, in the case of Class 1 - residential, the rate of 0.20190 is hereby substituted for the rate of 0.20960; and in the case of Class 6 - business and other, the rate of 1.46881 is substituted for the rate of 1.47550 for taxation pursuant to the Greater Vancouver Transportation Act within the City of Vancouver for the 2000 taxation year.

* * * * *

(c) 1998 City of Vancouver