City of Fort St. John

CITY OF FORT ST. JOHN

PROPERTY TAX RATE

Council Policy No. 56/00

Records Management Number: 1970-00

Finance

PROPERTY TAX RATE POLICY

POLICY

City Council's long term goal of achieving fairness and equity for all classifications of taxpayers is measured by establishing a benchmark of tax rate averages for northern and resource communities. Success of this policy shall be determined by achieving property tax levels which are equal or lower than the average tax rate for northern/resource communities.

BACKGROUND

Commencing in 1993, City Council introduced and has maintained a tax rate reduction policy benchmarked against provincial tax rate averages for all BC municipalities. Consistent application of this policy has resulted in significant tax rate reductions for all classifications, particularly business and residential.

GOAL

It is the goal of the new policy to establish a new benchmark for measuring property tax rate levels. By utilizing a benchmark of northern/resource communities tax rates averages, a realistic comparison is possible. The northern communities are all of the communities north of 100 Mile House that exceed 5,000 in population. They are all responsible for policing, as is Fort St. John and they all face climatic and cost disparity factors that influence their costs of providing services. The resource communities are primarily forestry based economies (pulp) and provide a benchmark average for communities that function as regional service centres to resource based industries.

It is also the City's goal to establish property tax rates for Class V major industry that will facilitate incorporation of adjacent industrial properties into City boundaries. The adjacent industrial properties will primarily be utilized for forest based industries and the Class IV rates will be set significantly lower than our benchmark averages until such time as the oil and gas tax base is incorporated or a regional municipality is formed.

The City's Class IV tax rate for the calendar years 2001 to 2004 will be set equivalent to the rural property tax rate in the adjacent rural fire protection area (the 2000 rural property tax rate is $12.75). In the event of a change in local government structure or in the event that the oil and gas industry is incorporated into the City proper by satellite prior to 2004, the tax rate for Class IV within City boundaries or the adjacent BCR Industrial Park will be maintained at the rural tax base average for the period up to December 31, 2004 through the process of supplementary letters patent approved by the Provincial Government. The City acknowledges that the principal owners Slocan and Louisiana Pacific and the new joint venture company will actively support the City's initiative to integrate all of the industrial/business and residential tax bases.

OBJECTIVE

The overall objective of the property tax rate policy is to achieve fairness and equity of all City taxpayers and to provide a stable and competitive business environment.

SCHEDULE A

BENCHMARK COMMUNITIES

Northern Communities Resource Communities

Communities in excess of 5,000 population Communities in excess of 5,000 population that are

that are responsible for policing costs and responsible for policing with economies based on

located north of 100 Mile Houseresource development (primarily pulp mills)

Smithers Port Alberni

Quesnel North Cowichan

Williams Lake Prince George

Prince George Mackenzie

Mackenzie Nanaimo

Terrace Powell River

Kitimat Prince Rupert

Prince Rupert Kamloops

Dawson Creek

SCHEDULE A

Supersedes Council Resolution Number: 200/00Page: 1 of 4