A13
ADMINISTRATIVE REPORT
Date: May 10, 1996
TO: Vancouver City Council
FROM: Director of Finance
SUBJECT: Adoption of 1996 Operating Budget,
Taxation Resolutions and Bylaws
RECOMMENDATION
A. THAT Council adopt the 1996 Operating Budget estimates,
which are summarized in Appendix A, by approving the budget
resolution attached as Appendix B.
B. THAT Council approve the 1996 Property Taxation Limitation
Bylaw as submitted this day, limiting the growth in property
taxes for Class 6, Commercial and Other, properties for
1996.
C. THAT Council approve the 1996 rating bylaw for the City s
general purposes property taxes as submitted this day.
D. THAT Council approve the 1996 rating by-laws for the
property tax requisitions of the Greater Vancouver Regional
District and the Greater Vancouver Regional Hospital
District.
E. THAT Council approve the resolutions attached as Appendices
C through F, adopting adjusted tax rates for the Provincial
School, the B.C. Assessment Authority, the Municipal Finance
Authority, and the Vancouver Regional Transit Commission
levies, pursuant to the Vancouver Charter and the Averaging
Bylaw No. 7543 adopted by Council on March 26, 1996.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of
A, B, C, D and E.
COUNCIL POLICY
The Vancouver Charter requires that Council adopt the final operating
budget as submitted by the Director of Finance through a formal
resolution, and that the general purposes tax rates for each class of
property and the amount to be raised as the City s general purpose
levy for the year be approved by a rating by-law.
Legislation governing the Greater Vancouver Regional District and the
Greater Vancouver Regional Hospital District requires that Council
approve rating by-laws establishing the tax rate for each class of
property in the City to raise the respective requisitions of these
districts in the current tax year.
On March 26, 1996, Council approved the averaging of taxable values
for Residential (Class 1) properties and Commercial (Class 6)
properties for the 1996 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 their tax levies
revenue neutral.
On May 9, 1996, Council approved a property tax limitation program to
apply to Class 6 property for the 1996 taxation year.
PURPOSE
This report recommends the adoption of the City's 1996 Operating
Budget and approval of the related rating bylaws and resolutions to
give effect to the various 1996 tax levies billed by the City.
BACKGROUND
On March 26, 1996, 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
1996 property taxes.
On April 25, 1996, Council approved the recommendations of the
Director of Finance that the 1996 Operating Budget be adopted in
principle subject to submission of a formal resolution. This budget,
totalling $545,233,000, provides for all of the revenues and
expenditures of the City for 1996 and is based on a general purposes
tax increase of 0% for City expenditures and 0.1% for regional
sewerage costs.
On May 9, 1996, Council approved the recommendations of the General
Manager of Corporate Services that Council adopt a Property Taxation
Limitation Program for Class 6, Commercial, properties for the 1996
taxation year. The program will limit the increase in property
taxation from all levies on qualifying Class 6 properties to a maximum
of 20% or $7,500 above the 1995 level.
DISCUSSION
1. 1996 Operating Budget
On April 25, 1996, Council approved the City's 1996 Operating Budget
in principle, subject to the Director of Finance submitting a formal
resolution to Council to adopt the budget. The revenue and
expenditures sides of the Operating Budget as set out in Appendix A
are the same as those approved by Council.
This report introduces the formal resolution (Appendix B) necessary to
complete the budget cycle and the general purposes taxation rating
bylaw which sets the tax rates for each class of property necessary to
raise the taxes required for the City's general purpose tax levy.
To balance the 1996 Operating Budget approved by Council, the general
purposes tax levy is set at $328,384,981. The tax rates necessary to
raise this amount, incorporating the 1996 Land Assessment Averaging
Program and the tax capping program for commercial properties, are
shown below:
Class Description 1996 Tax Rates
1 Residential 2.66100
2 Utilities 27.55483
4 Major Industry 30.81391
5 Light Industry 25.99790
6 Commercial and Other 14.55811
8 Seasonal/Recreational 2.59477
9 Farm 2.59477
2. 1996 Assessment Averaging Program
This report also introduces the formal resolutions necessary to adjust
the Class 1, Residential, and Class 6, Commercial and Other, property
tax rates submitted by the Provincial Government for school purposes
(Appendix C), the B.C. Assessment Authority (Appendix D), the
Municipal Finance Authority (Appendix E) and the Vancouver Regional
Transit Commission (Appendix F). Adoption of these resolutions is
necessary to give effect to the 1996 Assessment Averaging Program.
3. Taxation Limitation Program
Before Council later this day will be a bylaw submitted by the General
Manager of Corporate Services which will give effect to the Property
Tax Limitation Program approved by Council on May 9, 1996.
4. Property Taxation Rating Bylaws
Before Council later this day will be three property taxation rating
bylaws which give effect to the City's general purposes property tax
rates and establish rates of taxation on each class of property
necessary to raise funds for the tax requisitions submitted to the
City by the Greater Vancouver Regional District and Greater Vancouver
Regional Hospital District.
CONCLUSION
The 1996 Operating Budget set out in Appendix A reflects the 0%
general purposes tax increase related to City expenditures and the
0.1% tax increase related to regional sewerage costs as approved by
Council on April 25, 1996. Approval of the report recommendations,
resolutions and rating and capping bylaws referenced in this report
will complete the 1996 budget development cycle and provide the
necessary authorities for staff to immediately proceed with the City's
main tax billing for 1996.
* * * * *
APPENDIX A - On file in the City Clerk's Office.
* * * * *
APPENDIX B
RESOLUTION
MOVED BY COUNCILLOR:
SECONDED BY COUNCILLOR:
WHEREAS the Vancouver Charter, Section 219 requires that the
Director of Finance submit to Council by April 30 each year the
detailed estimates of revenue and expenditure of the City for the
year;
AND WHEREAS the Vancouver Charter, Section 372 requires that
Council adopt the estimates of revenues and expenditures for the City
as soon thereafter as possible:
AND WHEREAS on January 16, 1996, Council instructed that the
revenue and expenditure estimates of the City for the year 1996 be
developed on the basis of a general purposes tax increase that did not
exceed 1%;
AND WHEREAS Council has reviewed reports on the 1996 estimates
prepared by the Director of Finance dated April 9, 1996, and April 22,
1996, and has recommended certain amendments thereto;
AND WHEREAS the total estimated expenditures of the City to pay
all debts and obligations of the City falling due in the year 1996,
exclusive of the amounts required for school, the Greater Vancouver
Regional Hospital District, the Greater Vancouver Regional District,
the British Columbia Assessment Authority, the Municipal Finance
Authority, and B.C. Transit purposes and not otherwise provided for,
as amended by Council amount to $545,233,000;
AND WHEREAS the total estimated expenditures as aforesaid is the
sum of the appropriation requests of all departments and boards
properly supported by detailed analyses of those expenditures and
listings of the salaried staff;
AND WHEREAS the total estimated revenue of the City for 1996 from
sources other than real property taxes, as amended by Council, amounts
to $216,848,019;
AND WHEREAS the amount of the General Tax Levy so required is
$328,384,981;
THEREFORE be it resolved that the said estimates, both as to
totals and individual items pertaining thereto, of the Director of
Finance as so amended by Council be and the same are hereby adopted by
Council.
* * * * *
APPENDIX C
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 25, 1996 the Lieutenant-Governor in Council
levied the following tax rates on Class 1 - Residential and Class 6 -
business and other:
Class 1 - residential 2.7279
Class 6 - business and other 9.9000
being dollars of tax for each one thousand dollars of taxable value,
for the 1996 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 $144,504,434
Class 6 - business and other $120,255,051
AND WHEREAS on March 26, 1996, 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, 1996, of land in the
above-noted Classes subject to taxation under the School Act for the
year 1996 are as follows:
Net Adjusted
Taxable Value Taxable Value
Class 1 - residential $52,972,775,360 $51,656,091,943
Class 6 - business & other 12,146,974,842 12,141,738,607
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 2.79743 is hereby substituted for the rate of
2.7279; and in the case of Class 6 - business and other, the rate of
9.90427 is substituted for the rate of 9.9000 for taxation pursuant to
the School Act within the City of Vancouver for the 1996 taxation
year.
* * * * *
APPENDIX D
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, 1996, 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 0.1215
Class 6 - business and other 0.3803
being dollars of tax for each one thousand dollars of taxable value,
for the 1996 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 $6,436,085
Class 6 - business and other $4,599,508
AND WHEREAS on March 26, 1996, 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, 1996, of land in the
above-noted Classes subject to taxation under the British Columbia
Assessment Authority Act for the year 1996 are as follows:
Net Adjusted
Taxable Value Taxable Value
Class 1 - residential $52,971,894,460 $51,655,211,043
Class 6 - business & other 12,094,421,242 12,089,185,407
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 0.12460 is hereby substituted for the rate of
0.1215; and in the case of Class 6 - business and other, the rate of
0.38046 is substituted for the rate of 0.3803 for taxation pursuant to
the British Columbia Assessment Authority within the City of Vancouver
for the 1996 taxation year.
* * * * *
APPENDIX E
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 7, 1996, 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 0.0004
being dollars of tax for each one thousand dollars of taxable value,
for the 1996 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 $15,892
Class 6 - business and other $ 4,838
AND WHEREAS on March 26, 1996, 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, 1996, of land in the
above-noted Classes subject to taxation under the Municipal Finance
Authority Act for the year 1996 are as follows:
Net Adjusted
Taxable Value Taxable Value
Class 1 - residential $52,971,894,460 $51,655,211,043
Class 6 - business & other 12,094,421,242 12,089,185,407
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 0.00031 is hereby substituted for the rate of
0.0003; and in the case of Class 6 - business and other, the rate of
0.00040 is substituted for the rate of 0.0004 for taxation pursuant to
the Municipal Finance Authority Act within the City of Vancouver for
the 1996 taxation year.
* * * * *
APPENDIX F
RESOLUTION
MOVED BY COUNCILLOR:
SECONDED BY COUNCILLOR:
THAT WHEREAS pursuant to the British Columbia Transit Act,
Sections 11.1, 12 and 14, the Vancouver Regional Transit Commission,
with the approval of the Lieutenant Governor-in-Council, 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 3, 1996, by Order-in-Council 0431, the
Lieutenant Governor-in-Council approved Regulation 20-1996 of the
Commission adopting a tax rate of 0.9627 on the specified land and
improvements in Class 6 - business and other, being dollars of tax for
each one thousand dollars of taxable value for the 1996 taxation year,
which when applied to the net taxable value of the specified land and
improvements in Class 6 - business and other, in the City of Vancouver
would raise the sum of $11,642,705;
AND WHEREAS on March 26, 1996, pursuant to provisions of the
Vancouver Charter, Council approved an adjustment of the net taxable
value of land in Class 6 - business and other, within the City of
Vancouver;
AND WHEREAS the net taxable value of the specified land and
improvements in the City of Vancouver for the year 1996 is
$12,094,421,242 and the adjusted taxable value pursuant to Council
by-law of March 28, 1996 is $12,089,185,407;
AND WHEREAS Council is obliged to vary the rate set by the
Vancouver Regional Transit Commission 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 the rate of 0.96312 is hereby
substituted for the rate of 0.96270 for taxation pursuant to the
Vancouver Regional Transit Commission Regulation No. 20-1996 within
the City of Vancouver for the 1996 taxation year.
* * * * *