City of Kamloops

Review of Assessment Class Tax Rates REVIEW OF ASSESSMENT CLASS TAX RATES

PURPOSE: To provide Council with the proposed property tax mill rates for 2019 based on the approved property tax requirements from the final figures in the 2019–2023 Five-year Financial Plan and the application of Council Policy No. GGL-27, Class 4, Major Industry Tax COUNCIL STRATEGIC PLAN

Supports Council’s goals and objectives regarding:

Governance and Accountability • Fiscal Responsibility: We are fiscally responsible and accountable City’s Financial Timeline Tax rates Budget approved Planning April June – Oct Public Meeting

Financial Utility rates and statement Provisional 5 year presented financial plan approved March/April December Supplemental items review and 5 year plan Public Meeting finalized January –March KEY BUDGET DATES:

 February 5, 2019 – Update provisional budget and introduce supplemental items  February 7, 2019 – Public meeting 7pm (Sandman Centre – Valley First Lounge)  March 12, 2019 –Finalize tax requirements including supplemental items and their funding sources • April 16, 2019 – Set property tax rates (mill rates) SUMMARY

• Final step in the annual budget planning process • Total requirement for 2019 is $111.7 million • Rates need to be included into bylaws – May 15th deadline ASSESSED VALUE VS PROPERTY TAXES (%) 90% 85.35%

80%

70% 63.79%

60%

50%

40%

30% 26.54%

20% 13.03% 10% 0.44% 4.91% 2.65% 0.46% 0.60% 1.84% 0% RESIDENTIAL UTILITIES MAJOR INDUSTRY LIGHT INDUSTRY BUSINESS

Assessed Value Property Taxes PROPERTY TAXES AND UTILITIES ON AN AVERAGE SINGLE-FAMILY RESIDENTIAL HOME - 2018

6,000

5,000

4,000

3,000

2,000

1,000 Property Taxes and Utilities and Taxes Property 0 CHILLIWACK KAMLOOPS NANAIMO PRINCE ABBOTSFORD KELOWNA LANGLEY WEST $554,200 $408,600 $464,400 GEORGE $688,400 $658,300 $827,800 KELOWNA $278,509 $634,500

General Municipal Taxes and User Fees Other Taxes (collected for other taxing authorities) 2018 COMPARISON – CLASS 4 – HEAVY INDUSTRY MILL RATES 90.0000

80.0000 Kamloops, 73.3400

70.0000

60.0000 Prince George, 47.5606

50.0000

Coquitlam, 28.9196

Mill Rate 40.0000 Delta, 28.1936

30.0000 Maple Ridge, 23.6677

Kelowna, 21.4734 20.0000 Nanaimo , 12.9391

10.0000 Port Coquitlam, 10.6173 Chilliwack, 7.2477 0.0000 Langley , 6.9187 2014 2015 2016 2017 2018 2018 COMPARISON – CLASS 4 – HEAVY INDUSTRY MULTIPLE OF RESIDENTIAL

16.00 Kamloops, 14.13 14.00 Coquitlam, 14.30 12.00 Delta, 12.17 10.00 Maple Ridge, 7.90

8.00 Kelowna, 6.62 Prince George, 6.26 6.00 Port Coquitlam, 4.35

Multiple of Residential Victoria, 3.53 4.00 Langley , 3.18 2.00 Nanaimo , 2.89 Saanich, 2.66 - Chilliwack, 2.23 2014 2015 2016 2017 2018 2018 COMPARISON – CLASS 5 – LIGHT INDUSTRY MILL RATES 30.0 Prince George, 28.1493

25.0 Kamloops, 20.7700

20.0

Nanaimo , 12.9391

15.0 Port Coquitlam, 10.6173 Mill rate Coquitlam, 9.9203 10.0 Maple Ridge, 9.8429 Delta, 7.5475

5.0 Chilliwack, 7.2477

Kelowna, 7.7152 0.0 Langley , 7.1930 2014 2015 2016 2017 2018 2018 COMPARISON – CLASS 5 – LIGHT INDUSTRY - MULTIPLE OF RESIDENTIAL

6.0

5.5

5.0 Coquitlam, 4.91

4.5 Port Coquitlam, 4.35

Kamloops, 4.00 4.0 Prince George, 3.71 3.5 Langley , 3.31 Maple Ridge, 3.29 3.0 Delta, 3.26 Multiple of residential 2.5 Nanaimo , 2.89

2.0 Kelowna, 2.38 Chilliwack, 2.23 1.5

1.0 2014 2015 2016 2017 2018 COMPARISON – CLASS 6 – BUSINESS MILL RATES

20.0

18.0 Prince George, 17.5046 16.0

14.0 Kamloops, 13.2100 Nanaimo , 12.9391 12.0 Victoria, 11.6261

Mill Rates Maple Ridge, 9.8429 10.0 Port Coquitlam, 9.1630 Coquitlam, 8.8663 8.0 Langley , 8.1502 Chilliwack, 7.8122 6.0 Delta, 7.7991 Kelowna, 7.7152 4.0 2014 2015 2016 2017 2018 COMPARISON – CLASS 6 – BUSINESS MULTIPLE OF RESIDENTIAL

5.5

5.0

4.5 Coquitlam, 4.38

4.0 Port Coquitlam, 3.76 Langley , 3.75 3.5 Maple Ridge, 3.29 Delta, 3.37 3.0 Nanaimo , 2.89 Chilliwack, 2.40 2.5 Multiple of residential Kamloops, 2.55 2.0 Kelowna, 2.38

1.5 Prince George, 2.30

1.0 2014 2015 2016 2017 2018 MAJOR INDUSTRY TAX RATES POLICY:

• Major industry tax rate shall not exceed 2016 rate of 74.00 (2019 – 71.81; 2018 - 73.34) • Maximum taxation revenue collected from Class 4 will not exceed $6.2 million (2019- $5.5 million) • Future growth in class 2 and class 4 will be applied to reduce class 4 rates • Objective to move class 4 rate to provincial average (2018 average rate – 23.36) PROPOSED MILL RATES Class 2019 Proposed Mill Expected Tax % of Total Tax Rate Revenue Revenue ($ per $1,000 of assessed value) 1, Residential 4.98 $71,346,732 63.79% 2, Utilities 40.00 2,964,387 2.65% 4, Major Industry 71.81 5,496,301 4.91% 5, Light Industry 20.39 2,053,701 1.84% 6, Business and Other 13.57 26,683,930 26.54% 8, Recreational 14.52 213,435 0.19% Property, Non-profit Organization 9, Farm 13.65 82,891 0.07% REVIEW OF ASSESSMENT CLASS TAX RATES

RECOMMENDATION:

That the Committee of the Whole provide direction to staff to establish tax rates to be included in Financial Plan Bylaw No. 16-319 and Tax Rates Bylaw No. 22-1-114.