Forest City Dam North Lake Local Service District Potential for Tax Base Loss Financial Impact April 1, 2017

2017 North Lake Budget Policing $176,088 Fire Suppression $130,777 Solid Waste $55, 829 Recreation & Community Services $17,150 Cost of Assessment $11,409 Rural Planning $12,917 Administration $8,911 Dog Control $1,941 Total $415,022 Less Revenue , Grants and Surplus ($48,939) Total to be Raised by Taxes $366,083

LSD vs. Provincial Tax 2017 North Lake Tax Base $58,808,450 2017 Budget to be Raised by Taxes $366,083 = 0.6225 2017 Provincial Residential = 0.4309 + Assessment Rate 2017 Provincial Non Owner Occupied = 1.1427 2017 Provincial Woodlands = 1.2562

Affected Properties Property Values on Shores of North Lake, Thoroughfare and East Grand Lake Residential $10,279.400 Non Owner Occupied $23,390,200 Woodlands $ 1,724,000 Total $35,393,600 60%

Potential Property Value Decline Comparing Waterfront to first Tier Properties shows a consistent 40% - 60% reduction in Assessed/Market Value Presented a 40% value loss on property to a Real Estate professional and to a SNB Property Assessment Manager. Both responded 40% was too conservative an estimate. Loss would likely be 50% or worse.

Potential Tax Revenue Loss Based on a 50% Reduction in the Market Value of the Affected Waterfront Properties LSD Loss $17,696,800 @ 0.6225 = $110,162 Provincial Loss Residential $ 5,139,700 @ 0.4115 = $ 22,147 Non O/O $11,695,100 @ 1.1233 = $133,640 Woodlands $ 862,000 @ 1.2368 = $ 10,828 $166,615

SUMMARY Potential Loss of 30% of Tax Base LSD capability to provide Fire & Recreational Services GUTTED Province loses > $150,000 Revenue annually