Purpose of this policy

1   To establish criteria for calculating local area service taxes to be imposed on parcels of and benefiting from, or abutting local area services, as established by bylaw pursuant to the requirements of the Community Charter.

Authority

2   Community Charter

Guiding principles

3   (1) A local area service is a municipal service that is to be paid for in whole, or in part, by a local area service tax, in accordance with the establishing bylaw for the service, by means of either, or both of:

(a) a property value tax imposed on land, on improvements, or both; and

(b) a parcel tax.

(2) A local area service tax is imposed only on those parcels of land benefiting from, or abutting local area services.

(3) The only services that may be provided as local area services are:

(a) services that the Council considers provide particular benefit to part of themunicipality; and

(b) business improvement area services.

(4) Revenue from a local area service tax may only be expended for the local area service in relation to which it is imposed.

Owners' portion of cost

4   The portion of a local area service installed under a local area service project, which is to be specially charged against the parcels benefiting from, or abutting the work, but not included under a previous local area service, as the owners’ portion of the costs, shall be 75%, except for those lands identified in the OCP as City in the Country Plan, business oriented development is expected to pay for itself so that the owners would cover the entire cost (100%) of a local service.

Local area service tax

5   (1) The owners’ portion of the cost is payable by a local area service tax levied for 20 years, with the annual charge per property being the cost per taxable frontage meter, including interest, multiplied by the taxable frontage for that property.

(2) The local area service tax shall be calculated on the basis of taxable frontage in accordance with the formulae outlined on Schedule “A” attached to, and forming part of, this policy, with the following exceptions:

(a) a minimum taxable frontage of 18 metres (60 feet) shall apply to all parcels with a lesser actual frontage;

(b) a maximum taxable frontage of 61 metres (200 feet) shall apply to all parcels with a greater actual frontage.

(3) For purposes of the petition, the cost per taxable frontage for all local area services shall be calculated as follows:

(a)

(b) The 0.75 (75%) factor represents the owners’ portion of the cost to be charged to the properties.

(4) If the actual cost of the local area service project is less than that estimated for the petition, annual charges will be based on actual cost.

Local area service tax - City in the country plan lands

6   (1) The owners’ portion of the cost of a local area service tax is 100% of the actual cost, levied for 20 years.

(2) The local area service tax shall be calculated as a parcel tax on the basis of the taxable area. This reflects the net developable area, which is determined by geotechnical or topographical constraints and excluding environmental setback areas from watercourses, future road dedications along existing road frontages, statutory rights-of-way for underground utilities, including natural gas, petroleum products, water, sanitary sewer and storm sewer works, and other similar factors. Relevant land use plans and restrictions may also be relevant in determining a taxable area.

(3) For purposes of the petition, the cost per net developable hectare shall be calculated by dividing the total project cost by the total net developable area.

(4) If the actual cost of the local area service project is less than that estimated for the petition, annual charges will be based on actual cost.

Interest rate on local area service projects

7   The interest rate to be charged on local area service projects not commuted is the Municipal Finance Authority’s projected 20-year debenture rate, at the time the petition is issued, plus a 1% risk factor.

Commuted value

8   Owners, whose parcels benefit from, or abut the work and are subject to being specially charged, may commute, by payment, the special charges imposed on them. The commuted value is the unamortized proportionate share of the owners’ portion of the cost, as determined by the Officer assigned responsibility for financial administration.

Business improvement area services

9   Where Council has designated a business improvement area and granted money to a corporation or other organization that has, as one of its aims, functions, purposes, the planning and implementation of a business promotion scheme, all of the money granted shall be recovered annually by means of a local service tax levied in the form of a property value tax. The property value tax shall be imposed on lands and improvements located within the business improvement area, prescribed as Class 5 and Class 6 under the Assessment Act and regulations.

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