Policy statement

1   The City

(a) is sensitive to affordability for property owners, and

(b) aims to limit annual property revenue rate increases.

Purpose

2   The purpose of this policy is to establish guidelines related to the annual setting of tax rates to

(a) mitigate any sudden property tax increases,

(b) provide taxpayers with stable and equitable property taxation, while continuing to maintain desirable service levels, and

(c) support the current Official Community Plan Bylaw, Strategic Plan and Master Plans.

Interpretation

3   The Interpretation Bylaw applies to this policy.

Definitions

4   In this policy

"business/other" means property included in Class 6 property as defined in the Prescribed Classes of Property Regulation, B.C. Reg. 438/81;

"light industry" means property included in class 5 property as defined in the Prescribed Classes of Property Regulation, B.C. Reg. 438/81

"municipal price index" or "(MPI)"means the inflation index used by municipalities that is indicative of the mix of goods and services purchased by the City.

Tax rates

5   (1) The City will strive to maintain annual rate increases consistent with its overall annual municipal price index, where reasonable and appropriate.

(2) Despite subsection (1), the City will continue to monitor service levels and ensure they are maintained at an appropriate level.

(3) Should new fiscal pressures emerge, the City will evaluate its available funding and financing tools, including debt, financial stabilization reserves, upper level government funding, and user fees before considering an increase in tax revenue.

Tax burden

6   (1) The City will maintain the current share of distribution of property taxes among property classes, excluding the impact of new assessment revenue, by allocating tax increases equally.

(2) Despite subsection (1), the City will continue to monitor the distribution of tax revenue by property class in the context of its residential affordability and economic development objectives, and in consideration of any significant shifts in market value or market share by property class.

(3) Non-residential tax rates across neighbouring and nearby municipalities will be monitored on an annual basis.

(4) Consideration will be given to reducing the City's non-residential property tax burden, and particularly the light industry and business/other tax burden, over time in order to maintain competitiveness.

(5) Any tax burden redistributions will be implemented gradually, over the course of a number of years, to reduce sudden impacts to certain property classes.

No fettering of discretion

7   Nothing in this policy limits council's authority to impose fees or taxes in accordance with Part 7 of the Community Charter.