ADMINISTRATIVE REPORT

Date: May 7, 2002
Author / Local: Ken Bayne / 7223

RTS No. 02547

CC File No. 1552

Council: May 14, 2002

TO Vancouver City Council

FROM: General Manager of Corporate Services/Director of Finance

SUBJECT: Adoption of 2002 Rating Bylaws and Averaging Resolutions

RECOMMENDATIONS

A. THAT Council approve the 2002 Rating Bylaw establishing the City's general purposes property tax rates.

B. THAT Council approve the 2002 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. 8450 adopted by Council on March 26, 2002.

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 30, 2002.

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 to raise the requisition of the district in the current tax year.
On March 26, 2002, Council approved the averaging of taxable land values for Class 1 (Residential) and Class 6 (Business and Other) properties for the 2002 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 26, 2002.

BACKGROUND

On March 26, 2002, through passage of Bylaw 8450, 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 2002 property taxes.

On April 30, 2002, Council approved a resolution adopting the revenue and expenditure estimates of the City for the 2002 budget year. This budget, totalling $667,226,400, provides for all of the revenues and expenditures of the City for 2002 and is based on a general purposes tax increase of 4.0%.

2002 GENERAL PURPOSE TAX LEVY

To balance the 2002 Operating Budget approved by Council, the general purposes tax levy is set at $390,325,800. The tax rates necessary to raise this amount, incorporating the 2002 Land Assessment Averaging Program, are shown below.

2002 Tax Rates

Property Class (per $1000 of value)
Residential (1)3.11743
Utilities (2)31.25655
Major Industry (4)28.13435
Light Industry (5)15.45070
Business and Other (6)15.48259
Recreational Property/
Non-profit Organization (8)3.09800
Farm (9)3.09800

Before Council this day is a bylaw, 2002 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 2002 tax levy, with 2001 comparisons:

Class	2002 Levy	2001 Levy
Residential	$157,423,440	$152,224,442
Utilities	$7,029,637	$7,163,573
Light Industry	$2,252,449	$1,993,173
Heavy Industry	$2,648,585	$2,596,225
Business	$135,141,656	$134,907,879
Seasonal /Recreational	$468,413	$399,846
Farm	$269	$249
Total	$304,964,449	$299,285,387
Increase	1.89%

2. Greater Vancouver Regional District (GVRD) Requisition

The GVRD requisition to the City is $9,633,700 representing an decrease of $83,000 or 0.8% from the 2001 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 $19,000, an increase of $400 or 2.1% from the 2001 level.

4. BC Assessment Authority Levy

The BC Assessment Authority has set tax rates that generate a tax levy of $11,772,200, an increase of $12,300 or 1.6% from the 2001 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 $7,346,000 or 27.7% from the 2001 level. The most significant component of this increase is the increased residential property tax to fund thetransportation plan adopted in November, 2001.

AVERAGING RESOLUTIONS

Approval of the land assessment averaging program in 2002 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 tax bills to arrive during the first week of June. Property taxes are due by Wednesday July 3, 2002. 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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City of Vancouver2002 PROPERTY TAX RATES (per $1000 taxable value)											Appendix A
			Including:	averaging of Class 1/6 land assessments.
					Major	Light
			Residential	Utilities	Industry	Industry	Business	Seasonal	Farm
Levy per			Class 1	Class 2	Class 4	Class 5	Class 6	Class 8	Class 9
General			3.11743	31.25655	28.13435	15.45070	15.48259	3.09800	3.09800
Provincial School			2.98026	15.00000	12.50000	9.90000	9.92035	4.50000	6.80000
TransLink (GVTA)			0.28920	2.38020	2.31380	2.31380	1.66914	0.28740	0.28740
BC Assessment			0.12528	0.62590	0.67270	0.34860	0.34932	0.13940	0.16930
Municipal Finance			0.00030	0.00050	0.00050	0.00050	0.00020	0.00020	0.00020
Regional District			0.10857	0.38001	0.36915	0.36915	0.26602	0.10857	0.10857
TOTAL			6.62104	49.64316	43.99050	28.38275	27.68762	8.13357	10.46347
2002 PROPERTY TAX REVENUE BY LEVY
					Major	Light
			Residential	Utilities	Industry	Industry	Business	Seasonal	Farm
Levy			Class 1	Class 2	Class 4	Class 5	Class 6	Class 8	Class 9		TOTAL
General			164,763,547	6,004,022	5,069,695	4,133,584	210,027,393	327,286	245		390,325,800
Provincial School			157,423,440	7,029,637	2,252,449	2,648,585	135,141,656	468,413	269		304,964,400
TransLink (GVTA)			15,276,010	711,662	416,937	619,020	22,642,531	29,812	11		39,696,000
BC Assessment			6,617,491	187,139	121,218	93,262	4,738,661	14,460	7		11,772,200
Municipal Finance			15,846	149	90	134	2,713	21	0		19,000
Regional District			5,734,842	113,620	66,519	98,760	3,608,664	11,262	4		9,633,700
TOTAL			349,831,177	14,046,229	7,926,908	7,593,345	376,161,619	851,254	537		756,411,100

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 19, 2002 by Order-in-Council No. 296, the Lieutenant-Governor in Council levied the following tax rates on Class 1 - Residential and Class 6 -business and other:

Class 1 - residential 2.9617
Class 6 - business and other9.9000

being dollars of tax for each one thousand dollars of taxable value, for the 2002 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 $ 157,423,308
Class 6 - business and other $ 135,141,655

AND WHEREAS on March 26, 2002, 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 26, 2002, of land in the above-noted Classes subject to taxation under the School Act for the year 2002 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 53,153,022,958 $ 52,822,049,235
Class 6 - business & other 13,650,672,255 13,622,653,834

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 2.98026 is hereby substituted for the rate of 2.96170; and in the case of Class 6 -business and other, the rate of 9.92035 is substituted for the rate of 9.9000 for taxation pursuant to the School Act within the City of Vancouver for the 2002 taxation year.

Appendix C

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to Section 17(2) of the 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 February 12, 2002, 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 0.12450
Class 6 - business and other 0.34860

being dollars of tax for each one thousand dollars of taxable value, for the 2002 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 $ 6,617,497
Class 6 - business and other $ 4,738,656

AND WHEREAS on March 26, 2002, 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 26, 2002, of land in the above-noted Classes subject to taxation under the British Columbia Assessment Authority Act for the year 2002 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 53,152,583,958 $ 52,821,610,235
Class 6 - business & other 13,593,389,655 13,565,387,612

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 0.12528 is hereby substituted for the rate of 0.12450; and in the case of Class 6 -business and other, the rate of 0.34932 is substituted for the rate of 0.34860 for taxationpursuant to the British Columbia Assessment Authority within the City of Vancouver for the 2002 taxation year.

Appendix D

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to Section 17 and 18 of 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 27, 2002, 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 0.00030
Class 6 - business and other 0.00020

being dollars of tax for each one thousand dollars of taxable value, for the 2002 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 $ 15,946
Class 6 - business and other $ 2,719

AND WHEREAS on March 26, 2002, 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 26, 2002, of land in the above-noted Classes subject to taxation under the Municipal Finance Authority Act for the year 2002 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 53,152,583,958 $ 52,821,610,235
Class 6 - business & other 13,593,389,655 13,565,387,612

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 taxationpursuant to the Municipal Finance Authority Act within the City of Vancouver for the 2002 taxation year.

Appendix E

RESOLUTION

MOVED BY COUNCILLOR:

SECONDED BY COUNCILLOR:

THAT WHEREAS pursuant to Section 25(9) of the Greater Vancouver Transportation Act, 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 November 23, 2002, the Authority levied the following tax rates on Class 1 - residential and Class 6 - business and other:

Class 1 - residential 0.28740
Class 6 - business and other 1.66570

being dollars of tax for each one thousand dollars of taxable value, for the 2002 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 $ 15,276,053
Class 6 - business and other $ 22,642,509

AND WHEREAS on March 26, 2002, 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 26, 2002, of land in the above-noted Classes subject to taxation under the Greater Vancouver Transportation Act for the year 2002 are as follows:

Net Taxable Value Adjusted Taxable Value

Class 1 - residential $ 53,152,583,958 $ 52,821,610,235
Class 6 - business & other 13,593,389,655 13,565,387,612

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 0.28920 is hereby substituted for the rate of 0.28740; and in the case of Class 6 -business and other, the rate of 1.66914 is substituted for the rate of 1.66570 for taxation pursuant to the Greater Vancouver Transportation Act within the City of Vancouver for the 2002 taxation year.

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(c) 1998 City of Vancouver