|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
December 6, 2004 | |
Author: |
Ken Bayne | |
Phone No.: |
873-7223 | |
RTS No.: |
04749 | |
CC File No.: |
2205 | |
Meeting Date: |
December 14, 2004 |
TO: |
Vancouver City Council |
FROM: |
General Manager of Corporate Services / Director of Finance |
SUBJECT: |
Grant-in-Lieu of Property Taxes: Greater Vancouver Water District |
RECOMMENDATION
THAT Council consent to the receipt of a payment-in-lieu of property taxes of $17,721 from the Greater Vancouver Water District.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of the foregoing.
COUNCIL POLICY
There is no applicable Council policy.
PURPOSE
This report seeks Council acceptance of a payment-in-lieu of property taxes from the Greater Vancouver Water District to offset foregone property taxes in 2004.
DISCUSSION
Recent changes in legislation have exempted property owned by the Greater Vancouver Regional District from property taxation. As a result, property owned by the Greater Vancouver Water District in the City of Vancouver has become tax exempt, resulting in a loss of taxes to the City.
On November 26, 2004, the regional district board approved a payment-in-lieu of taxes program that recognized the impact of lost taxes on member municipalities. The program proposes to make payments in lieu of taxes on a declining basis over five years beginning in 2004.
For the City of Vancouver, the impacts are small. The Water District owns property in Vancouver that generated $17,720 in municipal property taxes in 2003. It is proposed that the City receive that amount as a payment in lieu of taxes in 2004. That amount would decline until a full exemption is achieved over the five years of the program.
The Greater Vancouver Water District Act requires a resolution of Council to accept the payment in lieu of taxes for 2004 prior to the payment being made.
FINANCIAL IMPLICATIONS
The City will receive a payment-in-lieu of property taxes of $17, 721 in 2004.
CONCLUSION
In order for the regional district to make a payment-in-lieu of taxes on water district property in the City, a resolution of Council is necessary to accept the payment.
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