ADMINISTRATIVE REPORT

Date: April 29, 2001
Author / Local: Ken Bayne / 7223

RTS No: 02013

CC File Nos: 113/1552

Council: May 8, 2001

TO: Vancouver City Council

FROM: General Manager of Corporate Services/Director of Finance

SUBJECT: Adoption of 2001 Rating Bylaws and Averaging Resolutions

RECOMMENDATIONS

A. THAT Council approve the 2001 Rating Bylaw establishing the City's general purposes property tax rates.

B. THAT Council approve the 2001 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. 8313 adopted by Council on March 27, 2001.

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 April 26, 2001.

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 purposes 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 toraise the requisition of the district in the current tax year.

On March 27, 2001, Council approved the averaging of taxable land values for Class 1 (Residential) and Class 6 (Business and Other) properties for the 2000 tax year. Under the 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 the impact of land value averaging 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 27, 2001.

BACKGROUND

On March 27, 2001, through passage of Bylaw 8313, Council approved a program of averaging the assessed value of land for Class 1 (Residential) and Class 6 (Business and Other) over three years for the purpose of calculating 2001 property taxes.

On April 26, 2001, Council approved a resolution adopting the revenue and expenditure estimates of the City for the 2001 budget year. This budget, totalling $636,514,600, provides for all of the revenues and expenditures of the City for 2001 and is based on a general purposes tax increase of 3.0%.

2001 GENERAL PURPOSE TAX LEVY

To balance the 2001 Operating Budget approved by Council, the general purposes tax levy is set at $372,236,700. The tax rates necessary to raise this amount, incorporating the 2001 Land Assessment Averaging Program, are shown below.

Class		2001 Tax Rates (per $1000 of value
Residential	(1)	3.01093
Utilities	(2)	29.95880
Major Industry	(4)	29.72034
Light Industry	(5)	14.86333
Business and Other	(6)	14.82695
Recreational Property/Non-profit Organization	(8)	3.01490
Farm	(9)	3.01490

Before Council this day is a bylaw, 2001 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 2001 tax levy, with 2000 comparisons:

Class	2001 Levy	2000 Levy
Residential	$152,224,442	$150,137,302
Utilities	$7,163,573	$7,098,477
Light Industry	$1,993,173	$2,187,769
Heavy Industry	$2,596,225	$1,919,198
Business	$134,907,879	$131,182,770
Seasonal /Recreational	$399,846	$402,268
Farm	$249	$249
Total	$299,285,387	$292,928,033
Increase		2.2%

2. Greater Vancouver Regional District (GVRD) Requisition

The GVRD requisition to the City is $9,716,491, representing an increase of $232,244 or 2.4% from the 2000 level. A bylaw establishing tax rates for this levy is before Council this day.

3. Municipal Finance Authority Levy

The Municipal Finance Authority has set tax rates that generate a tax levy of $18,577, an increase of $315 or 1.7% from the 2000 level.

4. BC Assessment Authority Levy

The BC Assessment Authority has set tax rates that generate a tax levy of $11,760,099, a reduction of $188,400 or 1.6% from the 2000 level.

5. Greater Vancouver Transportation Authority (TransLink) Levy

The Greater Vancouver Transportation Authority has set tax rates that generate $32,350,284, an increase of $840,800 or 2.66% from the 2000 level.

AVERAGING RESOLUTIONS

Approval of the land assessment averaging program in 2001 requires that the tax rates submitted by these other taxing authorities for Class 1 (Residential) and Class 6 (Business 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 4, 2001. 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 or drop box
· In person at City Hall during regular business hours
· By post mail.

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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 11, 2001, the Lieutenant-Governor in Council levied the following tax rates on Class 1 - Residential and Class 6 - business and other:

Class 1 - residential 2.9498
Class 6 - business and other9.9000

being dollars of tax for each one thousand dollars of taxable value, for the 2001 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 $ 152,224,442
Class 6 - business and other $ 134,907,879

AND WHEREAS on March 27, 2001, 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 27, 2001, of land in the above-noted Classes subject to taxation under the School Act for the year 2001 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 51,605,004,540 $ 51,672,853,850
Class 6 - business & other 13,627,058,462 13,660,351,060

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 2.94593 is hereby substituted for the rate of 2.9498; and in the case of Class 6 -business and other, the rate of 9.87587 is substituted for the rate of 9.9000 for taxation pursuant to the School Act within the City of Vancouver for the 2001 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 12, 2001, 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 0.1267
Class 6 - business and other 0.3549

being dollars of tax for each one thousand dollars of taxable value, for the 2001 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 $ 6,538,295
Class 6 - business and other $ 4,816,066

AND WHEREAS on March 27, 2001, 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 27, 2001, of land in the above-noted Classes subject to taxation under the British Columbia Assessment Authority Act for the year 2001 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 51,604,539,540 $ 51,672,388,850
Class 6 - business & other 13,570,204,562 13,603,500,394

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 beenraised 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 0.12653 is hereby substituted for the rate of 0.12670; and in the case of Class 6 -business and other, the rate of 0.35403 is substituted for the rate of 0.35490 for taxation pursuant to the British Columbia Assessment Authority within the City of Vancouver for the 2001 taxation year.

Appendix D

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to the Municipal Finance Authority Act, the Municipal Finance Authority of BC 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, 2001, 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 2001 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 $ 15,481
Class 6 - business and other $ 2,714

AND WHEREAS on March 27, 2001, 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 27, 2001, of land in the above-noted Classes subject to taxationunder the Municipal Finance Authority Act for the year 2001 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 51,604,539,540 $ 51,672,388,850
Class 6 - business & other 13,570,204,562 13,603,500,394

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 0.00030 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 2001 taxation year.

Appendix E

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to the Greater Vancouver Transportation Act, Section 25(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, on March 31, 2001, the Authority levied the following tax rates on Class 1 - residential and Class 6 - business and other:

Class 1 - residential 0.2095
Class 6 - business and other 1.4748

being dollars of tax for each one thousand dollars of taxable value, for the 2001 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 $ 10,811,151
Class 6 - business and other $ 20,013,337

AND WHEREAS on March 27, 2001, 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 27, 2001, of land in the above-noted Classes subject to taxation under the Greater Vancouver Transportation Act for the year 2001 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 51,604,539,540 $ 51,672,388,850
Class 6 - business & other 13,570,204,562 13,603,500,394

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 0.20922 is hereby substituted for the rate of 0.20950; and in the case of Class 6 - business and other, the rate of 1.47119 is substituted for the rate of 1.47480 for taxation pursuant to the Greater Vancouver Transportation Act within the City of Vancouver for the 2001 taxation year.

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(c) 1998 City of Vancouver