1. City of Pitt Meadows Taxation 101– Townhall Meeting February 4, 2016

2. Mayor’s Welcome Property Tax Assessment - Explained Budget and Business Planning Process How are Taxes Calculated? Summary of the Budget Components 2016 Taxes and Utilities – Where are we at? Where Does the Money Go? Beyond the 2016 Budget Public Process Questions/Comments? Agenda

3. Introduction: Mr. Brian Smith, Deputy Assessor BC Assessment, Fraser Valley Region Property Tax Assessment - Explained

4. Budget & Business Planning Process

6. Budget & Business Planning Process cont’d Essential Services: – Police, Fire, Water, Sewer, Drainage, Diking, Roads Provision of Services Budget Driver Priority Services: – Parks, Recreation, Library, Bylaw Enforcement, Licensing, Arts, Culture, Heritage, Planning, Garbage/Recycling, Environmental/Sustainability Management Support Services: – Communications, Human Resources, Payroll, Finance, Administration, Legislative Services, Information Technology, Facilities

7. How Taxes Are Calculated

8. – Three factors that determine the amount of tax each home pays: Variable A - Tax revenue needed to balance the budget & fund services (determined by Council) Variable B - Total assessed values of all properties (Provided by BC Assessment) Variable C - Mill Rate generated by dividing the revenue needed by the assessed value Tax Revenue A Assessed Values B / 1,000 Mill Rate C

9. How Taxes Are Calculated Assessed Value Changes – Assessed value increases DO NOT bring revenue windfall to municipalities – Council determines the amount of tax to collect not BC Assessment – Once Council sets the tax revenue, this revenue variable is fixed – When the assessed values rise, the mill rate is decreased to generate the same level of taxation approved by Council Tax Revenue Assessed Values Mill Rate A / (B/1,000) = C

10. Class DescriptionTax Class #Revenue $% Residential17,02410,182,52860.9 Utilities241229,5101.4 Major Industry42126,5920.8 Light Industry538777,8354.7 Business & Other62224,690,36728.0 Recreation/Non-Profit854225,2521.3 Farm9473492,8182.9 TOTALS - 201516,724,902100.0 Municipal Property Tax Revenue

12. Tax Shift – $51,500 from Residential to Business

14. DescriptionAmount% Municipal Taxes Total1,77944% Diking2 Drainage108 Solid Waste253 Sewer275 Water438 Municipal Utilities Total1,07627% BC Assessment28 GVRD28 School937 TransLink149 External Agencies Total1,14229% Tax Notice Total3,997100% Property Tax Notice Explained 2015 Average Single Family - $468,000 Assessed Value

15. Budget Components

16. Operating Costs: – Direct & ongoing tax impact – Typically day-to-day costs of running the City Wages Materials/Supplies Training & Professional Development Heat & Light Insurance

17. Budget Components Capital Costs: – Indirect tax impact – Funding sources that DO affect tax Annual Reserve Contributions Debt – Funding sources that DON’T affect tax Road Use Levies Development Cost Charges Grants

18. Budget Components Reserves: – For asset/infrastructure replacement – Reduce/eliminate the need for borrowing and related costs – Operating Reserves - one-time costs can be managed without taxation impact

19. Budget Components Infrastructure Funding Gap DescriptionBuildingsVehicles & Equip RoadsDikingOtherLandSub-TotalUtilitiesTotal STATS: Value – Net Book Value (million) 22.14.324.212.012.151.3126.049.2175.2 Value – Original (million) 33.810.344.712.015.651.3167.776.1243.8 Value – Replacement (million) 64.312.169.6n/a17.7n/a163.7147.7311.4 Annual Depreciation (million) 1.00.81.30.00.6n/a3.71.24.9 FUNDING GAP: Annual Replacement 2,586,0001,257,0002,356,000n/a686,0006,885,0002,731,0009,616,000 Annual Asset Funding - 2016 967,000632,0001,709,0000661,0003,969,0002,188,0006,157,000 Annual Infrastructure Funding Gap $1,619,000$625,000$647,000n/a$25,000$2,916,000$543,0003,459,000

20. Where Does the Money Come From?

21. 2016 Taxes & Utilities – Where are we at?

22. Taxation: Single Family Home

23. Utilities: Single Family Home

24. Combined: Single Family Home

25. $80

26. Where Does the Money Go?

27. Service Value – 2016 Single Family

28. Service Value 2015 Single Family Residential Tax Comparison

29. Beyond the 2016 Budget

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31. DateTimeTopic October 27, 20156:00 pm to 8:00 pmBudget Workshop December 9, 20155:30 pm to 8:30 pmBusiness Plan Presentations December 10, 20159:00 am to 5:00 pmBusiness Plan Presentations Utility Plan January 13, 20165:30 pm to 9:00 pmBudget Deliberations January 14, 20165:30 pm to 9:00 pmBudget Deliberations February 4, 20166:00 pm to 9:00 pmBudget Town Hall Meeting March 1, 20167:00pm (Council)Financial Plan Bylaw/Utility Rates – Three Readings March 15, 20167:00pm (Council)Financial Plan Bylaw/Utility Rates – Adoption May 3 rd (tentative)7:00pm (Council)Tax Rate Bylaw – Three Readings May 10 (tentative)7:00pm (Council)Tax Rate Bylaw – Adoption Public Input Opportunities

32. Questions, Comments, Suggestions ???