2004/05/10SpecBudgetMtg. SPECIAL
COUNCIL/BUDGET
MEETING
May 10, 2004
Order of Business
and Agenda Package
SPECIAL COUNCIL/BUDGET MEETING
AGENDA
MONDAY, MAY 10, 2004
6:00 P.M.
COUNCIL CHAMBERS
PRAYER: Alderman Vince Kerrio
REPORTS
Please note that the following reports will be considered:
*Report F-2004-28, Chief Administrative Officer - Re: 2004 Capital Projects Budget
(dated April 19th, 2004)
*Report F-2004-29 - Chief Administrative Officer - Re: 2005-2008 Capital Projects
Budget (dated April 19~, 2004 )
*Report F-2004-30 - Chief Administrative Officer- Re: 2004 General Purposes Budget
(dated May 4th, 2004)
* these reports are included in your Budget binders
- AND -
Inter-Departmental Memorandum - Chief Administrative Officer - Re: 2004 General
Purposes Budget, and 2004 Capital Projects Budget.
- AND -
F-2004-32 - Chief Administrative Officer - Re: Regional Tax Policy.
-2-
RESOLUTIONS
1. That the City of Niagara Falls confirms its commitment to construct a Combined
Sewer Overflow treatment facility as described in the Central Pump Station and
High Rate Treatment Facility site specific environmental assessment.
BY-LAWS
2004-94 To adopt, ratify and confirm the actions of City Council at its meeting held on
the 10th day of May, 2004.
Chief Administrative Officer '
The C~ty of
N~agara Falls
Inter-Department Memorandum
Canada
TO: His Worship Mayor Ted Salci
and Members of the Municipal Council DATE: May 10, 2004
FROM: John MacDonald
Chief Administrative Officer
RE: 2004 General Purposes Budget and
2004 Capital Projects Budget
Update - 2004 General Purposes Budget
On May 4, 2004, the 2004 General Purposes Budget Handbook was presented to City Council for
their consideration. A number of amendments were made to Schedule B, Grants, Agencies, Boards
and Commissions. A revised Schedule B is attached which shows changes to the following:
1. Women's Place of South Niagara - Capital contribution of $20,000 per year for five years,
starting in 2004.
2. Boys and Girls Club - An increase of $18,100 to match their original request, for a total of
$210,000.
3. Niagara Falls Library Board - An increase of $34,000 for a revised total request of
$2,678,242.
4. Museums - An increase of $40,450 to match their original request, for a total of $244,117.
Council also approved an addition of $11,000 to the Park Security Contract Services for a total of
$17,000 for the 2004 year.
The grand total of these amendments is $123,550. In order to maintain the same property tax levy,
the following two amendments to offset the additions are suggested for Council's consideration:
1. The use of the increase in the GST rebate, pending Senate approval.
2. A transfer of $123,550 from the tax rate stabilization reserve.
Update to 2004 Capital Proiects Budget:
On April 19, 2004, the 2004 Capital Projects Handbook was presented to City Council for their
consideration. On May 4, 2004, one amendment was made to the 2005-2008 Capital Projects
Budget Forecast. The amendment was that the 2005 Millennium Trail Phase II expenditures be
moved from 2005 to 2004. The amendment provided the same sources of funding for the
expenditures, however, should a pending sale of City property be successfully completed in 2004,
then the Council, at that time, would consider utilizing the sale proceeds instead of debenture funding
for the project.
CITY OF NIAGARA FALLS REVISED SCHEDULE 'B'
2004 GENERAL PURPOSES BUDGET
GRANTS TO AGENCIES, BOARD AND COMMISSIONS
REVISED AS OF MAY 10, 2004 (*)
2003 I 2004 2004 $ Variance % Variance
APPROVED ORIGINAL REVISED More or (Less) than
REQUEST REQUEST REQUEST the 2003 Request
Niagara Fails Humane Society - Operating $361,000 $406,125 $374,500 $13,500 37%
Niagara Fails Humane Society - Capital Contribution 0 50,000 0 0.0%
361,000 456,125 374,500 37°/
Niagara Falls Transit Commission 1,611,500 2,302,600 2,227,600 616,100 38.2%
Niag ara Cha ir-A-Van 299,500 317,100 317,100 17,600 5.9%
Niagara Airport Commission 78,000 78,000 78,000 0.0%
Greater Niagara General Hospital Foundation 100,000 100,000 100,000 0.0%
SOCIAL ASSISTANCE:
Project Share 95,000 147,488 147,488 52,488 55.3%
Women's Place in South Niagara 25,000 25,000 25,000 0 0.0%
Women's Place in South Niagara - Capital Contribution * 0 20,000 20,000 20,000 0.0%
Young Women's Christian Association 85,000 (85,000 -100.0%
205,000 192,488 192,488 (12,51~ -6.1%
PARKS GROUNDS MAINTENANCE:
Firemen's Park 15,200 15,200 15,200 0 0.0~
Chippawa Lions Park 26,700 26,700 26,700 (~ 0 0.0%
Optimist Park 30,000 30,000 30,000 0.0%
71,900 71,900 71,900 0.0%
Optimist Park - Capital Contribution [$750,000 over 3 years] 250,000 0 01 0.0%
NIAGARA FALLS RECREATION COMMISSION:
Boy's and Girl's Club * 191,900 210,000 210,000 18,100 9.4%
Niagara Falls Badminton Tennis Club 5,000 5,000 5,000 0 0.0%
Niagara Falls Lighting Gymnastic Club 3,000 2,0001 2,000 (1,000', -33.3%
Niagara Falls Horticultural Society 800 800 800 0 0,0%
Niagara Falls Lawn Bowling Club 4,000 4,000 4,000 0 0.0%
Niagara Falls Summer Plaground Committee 15,800 15,800 15,800 0 0.0%
Niagara Falls Summer Swim Lessons Committee 12,400 12,400 12,400 0 0,0%
Stamford Lions 3,550 3,550 3,550 0 0.0%
Young Men's Christian Association 92,100 92,100 92,100 0 0,0%
328,550 345,650 345,650 17,100 5.2%
Niagara Falls Library Board * 2,542,542 2,705,300 2,678,242 135,700 5.3%
MUSEUMS:
Niagara Falls Board of Museums 3,879 3,879 3,879 0 0.0%
Lundy's Lane Museum * 114,504 140,912 140,912 26,408 23.1%
Willoughby Museum * 42,923 49,693 49,693 6,770 15.8%
Battle Ground Hotel * 35,000 49,633 49,633 14,633 41.8%
196,306 244,117 244,117 47,811 24.4%
NIAGARA FALLS ARTS AND CULTURE COMMISSION:
Niagara Falls Concert Band t -' 4,000 4,00~0 4,000 0 0.0%
St John Ambulance Boat Patrol I 29,000 32r500 29,000~ 0 ! 00%
TOURISM DEVELOPMENT:
Niagara Falls Illumination Board 34,550 34.550 34,5501 01 00%
Niagara Falls Tourism Bureau 965,000 9651000 868,500 i 96,500 -!06%
99~,550 999,550 ~g3:9~01 (9~,500il -97%
TOTAL REQUESTS $8,825,848/ $8,099,330, $7,565,647i $738,799I 10.8%
Corporate Services Department F-2004-32
ti~l~ Finance Division Kenneth E. Burden
The City of 4310 Queen Street = Director
Niagara FallslJ l P.O. Box 102S
Canada ~ Niagara Falls, ON L2E 6X5
.~111~~ -T"~m=~' ~'!~-' web site: www.city.niagarafalls.on.ca
Tel.: (905) 356-7521
Fax: (905) 356-2016
E-maih kburden@city.niagarafalls.on.ca
May 10, 2004
His Worship Mayor Ted Salci
and Members of the Municipal Council
City of Niagara Falls, Ontario
Members:
Re: F-2004-32 - 2004 Regional Tax Policy
RECOMMENDATION:
For the infonuation of City Council.
BACKGROUND:
Regional Tax Policy
In taxation years up to 2003, the main legislation impacting property tax determination was the
Continued Protection for Property Taxpayers Act (Bill 140). The main purpose of the legislation is
to provide the foundation for the property tax capping program for 2001 and future years. While this
legislation continues to be the foundation for property taxation, several regulations have provided
specific direction on the legislation.
The Region of Niagara amended its tax policy in accordance with this legislation and other relevant
regulations. In 1999, a Tax Study performed for the Region of Niagara identified that property taxes
for Multi-Residential, Industrial and Large Industrial classes were higher in comparison to other
municipalities. Regional Council initiated a five-year tax mitigation plan that reduced the tax burden
on these property classes. The aim of this five-year plan is to combine the Large Industrial with
Industrial into one class (one tax ratio) and to reduce the Multi-Residential tax ratio to 1.50 by 2004.
The Region has followed this plan, which has resulted in a reduction in the property tax ratios for
Multi-Residential, Industrial and Large Industrial property assessment classes. The next chart
highlights the progress to date of the Region's tax mitigation plan with the expected ratios prior to
tax policy changes for 2004.
The targets contained in the five-year plan have been achieved except for the multi-residential target.
In light of the assessment shifts identified earlier, Regional staffhas concluded that any further ratio
reductions cat only be funded from tax rate increases.
May 10, 2004 -2 - F-2004-32
TAX RATIOS
Achieved Planned
1998 1999 2000 2001 2002 2003 2004
Residential 1.0000 1.0000 1.0000 1.0000 1.000 1.000 1.0000
Multi-Residential 2.5568 2.4922 2.3953 2.1169 2.000 2.0 1.5000
New Multi-Residential 1.0000 1.0000
[ Commercial 1.6464 1.6147 1.6147 1.6147 1.6147 1.6147 1.6147
Industrial 3.6362 3.5184 3.5184 3.5184 3.3648 3.3243 3.5184
Large Industrial 4.1880 4.0371 3.8743 3.8743 3.7052 3.6606 3.5184
Pipelines 1.3514 1.3341 1.3341 1.3341 1.3341 1.3341 1.3341
Farmland 0.2500 0.2500 0.2500 0.2500 0.2500 0.2500 0.2500
Managed Forest 0.2500 0.2500 0.2500 0.2500 0.2500 0.2500 0.2500
Farmland Awaiting 0.7500 0.7500
Development I
Farmland Awaiting 1.0000 1.0000
Development II
Tax Ratios
Tax ratios express the municipal tax burden for each property class in comparison to that of the
residential property class. The tax ratio for the residential property class is set at 1.0000 with the
ratios for other tax classes established in relation to this ratio. The deadline for establishing these
ratios for 2004 is May 31s~, 2004.
As stated, the Region recognized that while reducing the tax ratios of the business classes was
important, the Region also recognized that the change in the assessment mix between classes was
equally important. In prior years, the ability to address this latter issue was not available in tax
legislation, however, new Provincial legislation passed in March 2004, permits municipalities to
minimize the impact of the tax burden shift to the residential class. The measures provided to the
Region in determination of the 2004 Ratios are as follows:
· Reveuue Neutral Tax Ratio~; Upper tier municipalities will be allowed to offset the impacts of
reassessmcnt by ax oiding tax shifts from the business classes to the residential property tax class.
This measure is revenue neutral, as taxation on each class would neither increase nor decrease.
The result is that the ratios of business classes can increase, but only to the extent required to
offset tax shifts caused by reassessment. The end result of this measure is to raise the tax ratios,
up to a revenue neutral level. The Region has utilized this tax measure in the establishment of the
tax ratios for 2004.
May 10, 2004 - 3 - F-2004-32
· Lew shift to Restricted Classes' Municipalities, (both upper and lower), with classes subject to
the levy restriction (hard cap) may apply up to 50% of the residential tax rate increase to the
restricted class. If enacted, this results in reductions to the residential tax rate while the industrial
tax rates and ratios will increase. The Regions has not utilized this tax measure in the
establishment of the tax ratios for 2004.
As a result, the Region of Niagara has adopted the following tax ratios for 2004:
Residential 1.0000 Multi-Residential 2.0990
Pipelines 1.4220 New Multi-Residential 1.0000
Farmlands 0.2500 Commercial 1.6621
Managed Forests 0.2500 Industrial 3.2038
Large Industrial 3.5279
Region of Niagara Tax Rates
The Region of Niagara has utilized the new legislative tools to mitigate some of the tax burden shifts
caused by the changing assessment mix. As a result, Regional By-law 65-2004 set the total 2004
tax levy at $235,064,826 ($221,128,310 in 2003). Of the total Regional levy, $50,094,862
($47,583,030 in 2003) will be collected from the taxpayers of Niagara Falls. Comparative tax rates
for 2003 and 2004 are provided in the following chart.
Tax Rates ~ Region of Niagara 2003
Residential 0.735423%
Multi-residential 1.470848%
New Multi-Residential 0.735423%
Commercial- Occupied 1.187490%
Commercial - Vacant 0.831243%
Industrial - Occupied 2.296029%
Industrial- Vacant 1.492418%
Large - Occupied 2.528305%
Large- Vacant 1.643397%
Pipelines 0.981127%
Farmlands 0.183856%
Managed Forests 0.183856% 0A79934%
Farmland Awaiting Development I 0.551568% 0:539803%
Farmland Awaiting Development 1I 0.735423%
May 10, 2004 - 4 - F-2004-32
Education Tax Rates
The Region of Niagara has been instructed by the Province to levy the following 2004 education
tax rates.
Tax Rates - Education 2003 2004
Residential 0.335000% 0 296000%
Multi-residential 0.335000%
New Multi-Residential 0.335000%
pi
Commercial - Occu ed 1.802873%
Commercial - Vacant 1.262011%
Industrial - Occupied 3.035952% 3085034%:
Industrial-Vacant 1.973369%
Large- Occupied 3.343084%
Large - Vacant 2.173005%
Pipelines 1.554359%
Farmlands 0.083750%
Managed Forests 0.083750% :0
Farmland Awaiting Development I 0.251250%
Farmlands Awaiting Development II 0.335000%
Waste Management
The Region of Niagara provides the waste management services for the City of Niagara Falls. The
City has a contract with the Region for $5,422,525 in 2004 ($4,866,994 in 2003) for this service.
The City has the obligation to determine the funding for these contracted services.
Since the closing of the landfill in the year 2000, the City has used both a user rate and a flat tax to
collect waste management revenues. Prior to the user fee method of 200 I, waste management costs
were partially funded by general taxation and landfill fees. For 200l, the user fee method resulted
in several withdrawals of users. The withdrawals caused a reduction in the City's revenues which
resulted in a deficit for waste management funding. For 2002, City Council agreed to institute a flat
tax that would be charged to all properties whether or not the owner of the property was using the
~vaste management service. Staffexperienced a significant increase in administration to handle the
implementation of both these methods, in 2003, City Council adopted a method that resulted in a
waste management tax rate based on property assessnrent. The same methodology is proposed for
2004. The effective rates for 2004 are those established by the Region of Niagara. The 2004 rates
for waste management are as shown in the following chart.
May 10, 2004 - 5 - F-2004-32
2003 2004
Property Class Tax Rate Tax Rate
Residential 0.075026% 0.077768%
Multi-Residential 0.150053% 0.163235%
New Multi-Residential 0.075026% 0.077768%
Commercial 0.121145% 0.129258%
Excess land 0.084801% 0.090480%
Vacant land 0.084801% 0.090480%
Industrial 0.249410% 0.249152%
Excess land 0.162116% 0.161949%
Vacant land 0.162116% 0.161949%
Large Industrial 0.274641% 0.274357%
Excess land 0.178517% 0.178332%
Pipelines 0.100093% 0.110586%
Farmlands 0.018757% 0.019442%
Managed Forests 0.018757% 0.019442%
Farmland Awaiting Development I 0.056270% 0.043744%
Farmland Awaiting Development II 0.075026% 0.077768%
Impact on City of Niagara Falls
At their May 6th, 2004 meeting the Region adopted the tax policies and tax rate ratios for the year.
In previous information provided to Council for the operating budget, it was noted that the impact
of the levy change would vary by property class. This chari has been reproduced below.
Assessment 2003 2004 $ Variance
Property Class Taxation Taxation More (Less)
Residential $19,970,345 $21,767,432 $1,797,088
Multi-Residential 1,981,607 2,038,545 56,939
Commercial 12,852,380 12,985,788 133,408
Industrial 1,059,618 1,139,619 80,001
Large Industrial 407,866 340,110 (67,757)
Pipeline 203,120 211,770 8,650
Farmlands 28,386 28,150 (237)
Managed Forests 378 486 108
Total $36,503,700 $38,511,900 $2,008,200
May 10, 2004 - 6 - F-2004-32
As this chart shows, while the overall impact of assessment change results in a levy change of
$2,008,200, the impact on individual property tax classes varies among classes. Since the majority
of the assessment growth was in the residential class, the majority of the levy increase is in that class.
At the May 6th, 2004 Regional meeting, the Region has adopted the measure that allows for the
adjustment of tax ratios. This has an impact on the levy increase of the City. The chart below
provides this information.
Assessment 2003 2004 $ Variance
Property Class Taxation Taxation More (Less)
Residential $19,970,345 $21,460,468 $1,490,123
Multi-Residential 1,981,607 2,134,480 152,873
Commercial 12,852,380 13,273,578 421,198
Industrial 1,059,618 1,064,184 4,566
Large Industrial 407,866 334,094 (73,772)
Pipeline 203,120 216,782 13,662
Farmlands 28,386 27,962 (424)
Managed Forests 378 352 (26)
Total $36,503,700 $38,511,900 $2,008,200
As a result of tax policy changes, the portion borne by the residential class is reduced by $306,965
with alterations to the other classes as shown.
Impact of Tax Policy on Individual Property owners
The previous section showed the impact of Regional tax policy on property classes. Based on this
policy, the City is in a position to establish preliminary tax rates. Using these preliminary tax rates
in addition to the approved Regional, educational and waste management rates, City staff has
determined the impact on individual property owners. The following chart shows the impact of the
total tax rate, as compared to 2003, per $100,000 of assessment by property class.
May 10, 2004 - 7 - F-2004-32
Assessment 2003 2004 $ Variance
Property Class Taxation Taxation More (Less)
Residential $1,713.85 $1,650.56 ($ 63.29)
Multi-Residential $3,092.70 $3,139.22 $46.52
Commercial $4,029.31 $3,993.30 ($36.01)
Industrial $7,318.69 $7,240.97 ($77.72)
Large Industrial $8,059.08 $7,973.48 ($8.56)
Pipeline $3,393.88 $3,467.72 $73.84
Farmlands $428.46 $412.64 ($15.82)
Managed Forests $428.46 $412.64 {$15.82)
Impact on an Average Household
Another important indicator is to determine the impac[ of tax policy changes on the average
residentialhousehold. In2003, the average household was valued at $123,000. Dueto assessment
increases, the average household value in 2004 has increased to $132,000.
The chart below identifies the anticipated impact of the overall tax change for the average residential
household.
Tax 2003 2004 $ Change % Change
Assessment 123,000 132,000 9,000 7.3°/3
City $603.92 $634.98 $31.06 5.1%
Urban Service Area $95.21 $100.33 $5.12 5.4%
Waste $92.28 $102.65 $10.37 11.2%
Region $904.57 $950.05 $45.48 5.0%
Education $412.05 $390.72 ($21.33) (5.2%)
Total $2,108.03 $2,178.73 $70.70 3.4%
As this chart identifies, the impact of tax policy changes, combined with assessment changes, results
in an increase of $71 or 3.4 % to the average household taxes.
May 10, 2004 .8 - F-2004-32
Summary
This report has been produced to provide Council with the tax impact on property owners of the
assessment changes, as well as the approved changes to Regional tax policy.
Prepared by: Respectfully submitted:
Todd Harrison ~~tCmDi~li~sa~rda
Manager of Revenue tive Officer
Recommended by:
K.E. Burden
Director of Finance
Approved by:
T. Ravenda
Executive Director of Corporate Services
The City of Niagara Falls, Ontario
Council Chambers
No. May 10, 2004
Moved by Alderman
Seconded by Alderman
WHEREAS an environmental assessment, known as the Central Pump Station and High Rate
Treatment Facility site specific EA, was completed in 2001; and
WHEREAS as a result of the EA, both the City and the Regional Municipality of Niagara are
proceeding with an upgrade to the Muddy Run and Central Sewage Pumping Stations and a
decommissioning of the Park Sewage Pumping Station; and
WHEREAS these improvements will mean the redirection of approximately 60% of the drainage
area, which is now tributary to the Muddy Run Pump Station, to the new Central Pump Station and
High Rate Treatment Facility; and
WHEREAS the project is estimated at a shared cost, with the Region, of approximately $ 375,000;
and
WHEREAS these system upgrades are included in the 5-year capital budget; and
WHEREAS these system upgrades will improve flows in the Glenview area, the location of the
proposed Great Wolf Lodge and Ripley's Aquarium.
THEREFORE BE IT RESOLVED THAT the City of Niagara Falls confirms its commitment to
construct a Combined Sewer Overflow treatment facility as described in the Central Pump Station
and High Rate Treatment Facility site specific environmental assessment.
AND The Seal of the Corporation be hereto affixed.
DEAN IORFIDA R.T. (TED) SALCI
CITY CLERK MAYOR