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HomeMy WebLinkAbout2013-08-26 Workshop Meeting Agenda and Reports.pdfDistrict of Maple Ridge 1.ADOPTION OF THE AGENDA 2.MINUTES –July 22, 2013 3.PRESENTATIONS AT THE REQUEST OF COUNCIL 3.1 4.UNFINISHED AND NEW BUSINESS 4.1 Update on the Agricultural Land Commission Decisions to Exclude Land from the Agricultural Land Reserve for 23451 and 23623 105 Avenue Staff report dated August 26, 2013 providing an overview of the Agricultural Land Commission decisions and implications for advancing the Block Exclusion applications for properties located south of 105 Avenue in the Albion Flats. COUNCIL WORKSHOP AGENDA August 26, 2013 9:00 a.m. Blaney Room, 1st Floor, Municipal Hall The purpose of the Council Workshop is to review and discuss policies and other items of interest to Council. Although resolutions may be passed at this meeting, the intent is to make a consensus decision to send an item to Council for debate and vote or refer the item back to staff for more information or clarification. REMINDERS August 26, 2013 Closed Council following Workshop Committee of the Whole Meeting 1:00 p.m. August 27, 2013 Public Hearing 6:00 p.m. Council Meeting 7:00 p.m. Council Workshop August 26, 2013 Page 2 of 4 4.2 Laserfiche Discovery Document – Review and Next Steps Discussion of Item 1133 on the August 26, 2013 Committee of the Whole Agenda 4.3 Financial Update Staff report dated August 26, 2013 providing a financial update to the end of June 2013. For information only No motion required 4.4 Property Tax Collection Period Presentation by the Manager of Revenue and Collections 4.5 2013 Business Class Property Taxation Staff report dated August 26, 2013 providing information on tax rates assessed to Business Class 6 properties in 2013. 4.6 September Public Hearing Consideration of change of date from September 24, 2013 to September 16, 17 or 23, 2013 5. CORRESPONDENCE The following correspondence has been received and requires a response. Staff is seeking direction from Council on each item. Options that Council may consider include: a) Acknowledge receipt of correspondence and advise that no further action will be taken. b) Direct staff to prepare a report and recommendation regarding the subject matter. c) Forward the correspondence to a regular Council meeting for further discussion. d) Other. Once direction is given the appropriate response will be sent. 5.1 Municipal Insurance Association of British Columbia (MIABC) - Voting Delegate E-mail dated August 12, 2013 from Marisa Newton, MIABC requesting appointment of a voting delegation and two alternates for the 26th Annual General Meeting. Council Workshop August 26, 2013 Page 3 of 4 6. BRIEFING ON OTHER ITEMS OF INTEREST/QUESTIONS FROM COUNCIL 7. MATTERS DEEMED EXPEDIENT 8. ADJOURNMENT Checked by: ___________ Date: _________________ Council Workshop August 26, 2013 Page 4 of 4 Rules for Holding a Closed Meeting A part of a council meeting may be closed to the public if the subject matter being considered relates to one or more of the following: (a) personal information about an identifiable individual who holds or is being considered for a position as an officer, employee or agent of the municipality or another position appointed by the municipality; (b) personal information about an identifiable individual who is being considered for a municipal award or honour, or who has offered to provide a gift to the municipality on condition of anonymity; (c) labour relations or employee negotiations; (d) the security of property of the municipality; (e) the acquisition, disposition or expropriation of land or improvements, if the council considers that disclosure might reasonably be expected to harm the interests of the municipality; (f) law enforcement, if the council considers that disclosure might reasonably be expected to harm the conduct of an investigation under or enforcement of an enactment; (g) litigation or potential litigation affecting the municipality; (h) an administrative tribunal hearing or potential administrative tribunal hearing affecting the municipality, other than a hearing to be conducted by the council or a delegate of council (i) the receiving of advice that is subject to solicitor-client privilege, including communications necessary for that purpose; (j) information that is prohibited or information that if it were presented in a document would be prohibited from disclosure under section 21 of the Freedom of Information and Protection of Privacy Act; (k) negotiations and related discussions respecting the proposed provision of a municipal service that are at their preliminary stages and that, in the view of the council, could reasonably be expected to harm the interests of the municipality if they were held in public; (l) discussions with municipal officers and employees respecting municipal objectives, measures and progress reports for the purposes of preparing an annual report under section 98 [annual municipal report] (m) a matter that, under another enactment, is such that the public may be excluded from the meeting; (n) the consideration of whether a council meeting should be closed under a provision of this subsection of subsection (2) (o) the consideration of whether the authority under section 91 (other persons attending closed meetings) should be exercised in relation to a council meeting. (p) information relating to local government participation in provincial negotiations with First Nations, where an agreement provides that the information is to be kept confidential. District of Maple Ridge COUNCIL WORKSHOP July 22, 2013 The Minutes of the Municipal Council Workshop held on July 22, 2013 at a.m. in the Blaney Room of the Municipal Hall, 11995 Haney Place, Maple Ridge, British Columbia for the purpose of transacting regular Municipal business. PRESENT Elected Officials Appointed Staff Mayor E. Daykin J. Rule, Chief Administrative Officer Councillor C. Ashlie K. Swift, General Manager of Community Development, Councillor C. Bell Parks and Recreation Services Councillor J. Dueck P. Gill, General Manager Corporate and Financial Services Councillor A. Hogarth F. Quinn, General Manager Public Works and Development Councillor B. Masse Services Councillor M. Morden C. Marlo, Manager of Legislative Services A. Gaunt, Confidential Secretary Other Staff as Required S. Blue, Manager Strategic Economic Initiatives D. Pollock, Municipal Engineer J. Bastaja, Director of Corporate Support S. Matthewson, Recreation and Social Planning Coordinator L. Holitzki, Director of Licences, Permits and Bylaws F. Armstrong, Manager of Corporate Communications Note: These Minutes are posted on the Municipal Web Site at www.mapleridge.ca 1.ADOPTION OF THE AGENDA The agenda was adopted with the addition of the following items: 4.7 Letter to Ombudsperson re: Investigation of BC Hydro projects 5.2 Requests for Meeting with Ministers at the Union of British Columbia Municipalities Conference 2.0 Council Workshop Minutes July 22, 2013 Page 2 of 6 2. MINUTES R/2013-317 Minutes It was moved and seconded July 8, 2013 That the minutes of the Council Workshop Meeting of July 8, 2013 be adopted as circulated. CARRIED 3. PRESENTATIONS AT THE REQUEST OF COUNCIL – Nil 4. UNFINISHED AND NEW BUSINESS 4.1 Education Task Force Composition and Scope of Work Staff report dated July 22, 2013 recommending that the proposed composition, scope and objectives of a Post-Secondary Education Task Force be approved, that staff be directed to carry out and oversee its formation, that two Councillors be appointed to the Task Force and that the Financial Plan be adjusted. The Manager Strategic Economic Initiatives reviewed the report. R/2013-318 Education Task It was moved and seconded Force Forward to Council That the report dated July 22, 2013 titled “Education Task Force Composition and Scope of Work” be forwarded to the July 22, 2013 Council Meeting: and further That Councillor Hogarth and Councillor Masse be included in the resolution as the Council appointees. CARRIED Council Workshop Minutes July 22, 2013 Page 3 of 6 4.2 Housing Action Plan Update Staff report dated July 22, 2013 recommending that the report titled “Housing Action Plan Update” be received for information. The Recreation and Social Planning Coordinator reviewed the report. R/2013-319 Housing Action It was moved and seconded Plan Update Receive for information That the report dated July 22, 2013 titled “Housing Action Plan Update” be received for information. CARRIED 4.3 Fibre Optic Network – Status Update and Next Steps Staff report dated July 22, 2013 recommending that a process for the Request for Expressions of Interest (“RFEI”) for participants in a District’s communication conduit network and services for economic development purposes be undertaken and that staff prepare amendments to Subdivision and Development Servicing Bylaw No. 4800-1993 to more formally define communications conduit development standards. The Director of Corporate Support reviewed the report. The Municipal Engineer provided clarification on the differences of between the Subdivision Bylaw and Development Cost Charges R/2013-320 Fibre Optic Network It was moved and seconded Forward to Council That the report dated July 22, 2013 titled “Fibre Optic Network – Status Update and Next Steps” be forwarded to the July 23, 2013 Council Meeting. CARRIED Council Workshop Minutes July 22, 2013 Page 4 of 6 Note: The meeting was recessed at 11:00 a.m. and reconvened at 11:10 a.m. 4.4 Proposed Sign Bylaw No. 7008-2013 Staff report dated July 22, 2013 providing information on and a draft of proposed Maple Ridge Sign Bylaw No. 7008-2013, The Director of Licences, Permits and Bylaws reviewed the report. She advised on significant changes and improvements to the definitions section of the bylaw and the amount of signage encroaching onto municipal property. R/2013-321 Proposed Sign It was moved and seconded BL No. 7008-2013 Receive for information That the report dated July 22, 2013 titled “Proposed Sign Bylaw No. 7008-2013” be received for information. CARRIED 4.5 August-December 2013 Council Matrix Staff report dated July 22, 2013 recommending that the Council Matrix attached as Appendix I to the staff report be adopted. The Manager of Legislative Services reviewed the report and the attached appendices. R/2013-322 Council Matrix It was moved and seconded Adopted That the Council Matrix attached as Appendix I to the staff report dated July 22, 2013 be adopted. CARRIED 4.6 Policy Review - Committees of Council Staff report dated July 22, 2013 advising that Policy 3.11, Committees of Council has been reviewed and that no changes are recommended. The Manager of Legislative Services reviewed the report. Council Workshop Minutes July 22, 2013 Page 5 of 6 4.7 Letter to Ombudsperson re: Investigation of BC Hydro projects Councillor Ashlie expressed concerns with practices being followed by Flatiron and BC Hydro relating to transmission line expansion and streamside protection. She asked that a letter be forwarded to the Ombudsperson requesting that a review of the practices of contractors working on transmission line expansion projects for BC Hydro. Mayor Daykin will write a letter to the Ombudsperson putting forward a request that the issue be reviewed. 5. CORRESPONDENCE Note Mayor Daykin excused himself at 12:15 p.m. from discussion of Item 5.1 as he is the Chair of the Youth Diversion Program Board. Councillor Masse served as Chair. 5.1 Ridge Meadows Youth Diversion Program – Fee for Service Funding Letter dated June 28, 2013 from Ranjit Kingra, Program Coordinator, Ridge Meadows Youth Diversion Program, requesting consideration of an increase in fee for service funding and exemption from rent. R/2013-323 Youth Diversion Program – Fee for It was moved and seconded Service Funding That the letter dated June 28, 2013 from Ranjit Kingra, Program Coordinator, Ridge Meadows Youth Diversion Program be referred to staff. CARRIED Note: Mayor Daykin returned to the meeting at 12:17 p.m. and resumed as Chair. 5.2 Requests for Meeting with Ministers at the Union of British Columbia Municipalities Conference Mayor Daykin requested that Councillors indicate which Provincial Ministers they would like to meet with. Council members will provide a list to the Mayor. Council Workshop Minutes July 22, 2013 Page 6 of 6 6. BRIEFING ON OTHER ITEMS OF INTEREST/QUESTIONS FROM COUNCIL 7. MATTERS DEEMED EXPEDIENT 8. ADJOURNMENT – 12:37 p.m. _______________________________ E. Daykin, Mayor Certified Correct ___________________________________ C. Marlo, Corporate Officer 1 District of Maple Ridge TO: His Worship Mayor Ernie Daykin DATE: August 26, 2013 and Members of Council FILE NO: FROM: Chief Administrative Officer ATTN: Workshop SUBJECT: Update on Agricultural Land Commission Decisions to Exclude Land from the Agricultural Land Reserve for 23451 & 23623 105th Avenue EXECUTIVE SUMMARY: On August 15, 2013 the District of Maple Ridge received two letters from the Agricultural Land Commission advising of its decisions relating to the exclusion applications for two properties in the Albion Flats: 23451 105th Avenue (Wynnyk) and 23623 105th Avenue (533014 BC Ltd & 610 Investments Ltd) (refer to appendix A & B). In both instances, the ALC Resolutions state “THAT the request for the exclusion of the subject property from the ALR be refused.” The following report is intended to provide an overview of the Agricultural Land Commission decisions, and implications for advancing the Block Exclusion applications for properties located south of 105th Avenue in the Albion Flats. RECOMMENDATION(S): That the report “Update on Agricultural Land Commission Decisions to Exclude Land from the Agricultural Land Reserve for 23451 & 23623 105th Avenue” dated August 26, 2013 be received as information. DISCUSSION: a)Background Context: i)Albion Flats Concept Plan On January 11, 2010 Council directed that a concept plan be prepared for the Albion Flats. On February 15, 2010 Council gave consideration to the “Albion Flats Concept Plan Process” report dated February 8, 2010 and resolved that the process recommended in that report be approved. At the outset of the process Council advised the Agricultural Land Commission (ALC) that the District of Maple Ridge (DMR) was in the process of considering its approach to advancing an area plan review for the Albion Flats, and requested that a meeting be convened between Council and the ALC to ascertain whether the Commission would be prepared to considered exclusions within the study area. In a letter dated January 7, 2010 the ALC advised the District of Maple Ridge that it would be inappropriate for the Commission to discuss the exclusion of lands in advance of a land use planning exercise, and suggested that Council proceed with the preparation of a concept plan, noting that the Commission staff could be made available for assistance. Following the completion of the draft concept plan, the ALC extended an offer to provide comments in advance of an application. The District of Maple Ridge followed the ALC’s advice and following a Council approved Public Process submitted a concept plan to the ALC for comments in May, 2011. 4.1 2 On July 4, 2011 the Commission hosted a workshop meeting with the District to discuss the Draft Albion Flats Concept Plan. On November 29, 2011, the Commission sent the District its comments pertaining to the Concept Plan. To summarize, the Agricultural Land Commission did not endorse the draft concept plan it its entirety, noting that the land north of 105th has agricultural capability; is suitable for agricultural use; and is appropriately designated as Agricultural Land Reserve (ALR). Amongst other things, the ALC Resolution states that the District should submit an exclusion application for the lands south of 105th Avenue, noting that the exclusion may be conditional on certain improvements occurring in the Albion Flats. Based on the feedback received from the Commission, in January 2012 Council considered three alternatives for advancement of the Concept Plan: “ 1) The District Submits an Exclusion Application for lands south of 105th Avenue; 2) The District Submits an exclusion Application for all of the lands in the Albion Flats; 3) A Hybrid Option, where the owner(s) of land north of 105th Avenue submit an application(s) for the lands north of 105th Avenue, and once the ALC decision is known, the District will submit an exclusion application for the lands south of 105th Avenue.” Earlier reports identified that some property owners in the area north of 105th Avenue had indicated that they intended to submit their own application(s) for exclusion from the Agricultural Land Reserve. It was also noted that the ALC’s decision on the lands north of 105th, may have implications for land use; drainage improvement requirements; and additional studies for lands to the south. It was further noted that if the Commission approves an exclusion application on lands to the north, the District may not need to prepare an agricultural remedial action plan and comprehensive drainage study. Conversely, if the ALC were to deny an application for exclusion on lands to the north, the District of Maple Ridge may wish to refine its concept plan for lands to the south to maximize the amount of commercial and employment space. On January 24, 2012 Council passed the following Resolution: “That staff be directed to advance Alternative Three identified in the staff report entitled “Draft Albion Flats Concept Plan – Agricultural Land Commission Feedback & Next Steps report”, dated January 23, 2012.” ii) Application to Exclude Land from ALR – 23451 105th Avenue (2012-061-AL) In July 2012, Council gave consideration to an application to exclude 16.655 hectares (41 acres) of land from the Agricultural Land Reserve (Wynnyk). The application was accompanied by an agrologist report in support of the application. The premise of the report is that drainage issues have severely compromised the agricultural capability of the property. The proposed benefit to agriculture was to transport the fertile soil to an agricultural property in Mission. There was no explicit statement of intent for the development of the property if excluded from the Agricultural Land Reserve. At the Council meeting of July 17, 2012 Council expressed concern about the lack of information with respect to future plans for the property and disappointment with the proposed removal of top soil from the property for relocation to property in Mission. At that same meeting, Council passed the following resolution: “That Application 2012-061-AL be authorized to go forward to the Agricultural Land Commission with a summary of Council’s comments.” 3 iii) Application to Exclude Land from ALR - 23623 105th Avenue (file 2012-086-AL) In August 2012, Council gave consideration to an application to exclude 8.085 hectares (20 acres) of land from the Agricultural Land Reserve (533014 BC Ltd and 610 Investments Ltd). There was no explicit statement of intent for the development of the property if excluded from the Agricultural Land Reserve. However, the applicant acknowledged the need for the future development of the site to be consistent with the Albion Flats Concept Plan. In its consideration Council expressed a desire to be consistent in its approach to forwarding exclusion applications in the Albion Flats to the Commission. Council also discussed the significance of the Albion Flats Concept Plan previously forwarded to the Commission. At the August 28, 2012 Council meeting, the following resolution was passed: “That Application 2012-086-AL be authorized to go forward to the Agricultural Land Commission with a summary of Councils Comments.” b) Update on ALC Decisions On August 15, 2013 the District of Maple Ridge received copies of two letters from the Agricultural Land Commission advising of its decisions relating to the exclusion applications for two properties in the Albion Flats: 23451 105th Avenue and 23623 105th Avenue. In both instances, the ALC Resolutions state: “THAT the request for the exclusion of the subject property from the ALR be refused.” While the body of each decision is different, the conclusions of the Commission are almost identical in both decisions and read: “The Commission concluded  That the agricultural suitability problems encountered by the applicants are real,  That they result primarily from inadequately serviced urban development,  That ultimate responsibility for ensuring adequate urban development servicing lies with the local government, which now operates the drainage district1  Thus the District of Maple Ridge, in consultation with Fisheries and Oceans Canada, is in a position to ensure that the problems are remedied and agricultural suitability is restored.” In addition to the above, the ALC minutes for 23451 105th (Wynnyk) identify that the chromium levels on the property are unacceptably high. As a result the Commission is requiring that soil reclamation be added to the list of conditions pertaining to the Districts block exclusion application for the lands south of 105th Avenue. The minutes also note that the Commission believes that its 2011 stipulation for preparation and implementation of an agricultural remedial action plan is still an appropriate course of action. This statement suggests that the Commission remains supportive of the Block Exclusion for lands south of 105 th Avenue, subject to satisfying their stipulated conditions. c) Implications for the Albion Flats Block Exclusion Application In 2011, the ALC provided comments on the Albion Flats Draft Concept Plan and passed a Resolution stating that the District should submit an exclusion application for the lands south of 105th Avenue, noting that the exclusion may be conditional on certain improvements occurring in the Albion Flats. The conditions identified at the time included: a comprehensive review of drainage and 1 The words “which now operates the drainage district” are not in the decision for 23623 105 th Avenue 4 stream flow conditions; preliminary consultation with Fisheries and Oceans Canada; the preparation of an agricultural remedial action plan; and traffic study. Terms of References for these studies were prepared in consultation with the Agricultural Land Commission; consultants were retained; and these studies are in various stages of completion. The goal being to submit the Block Exclusion application to the ALC in the fall/winter of 2013. At the time of writing this report, Agricultural Land Commission staff were not available to provide additional information pertaining to the new Soil Reclamation requirement. As a result, details pertaining to the scope of this condition, and likely outcomes are not known. While this has not been confirmed, staff anticipates that the Soil Reclamation requirement will trigger the need for a soil reclamation study to be commissioned. Depending on the complexity of this study, it is likely that delays on the timing of the block exclusion application may result. District staff will be speaking with the ALC to gain a better understanding of this requirement, and will report back to Council once this information is available. CONCLUSION: The District of Maple Ridge recently received correspondence from the Agricultural Land Commission, advising of its decisions to deny the exclusion applications for 23451 105th Avenue and 23623 105th Avenue, in the Albion Flats. The minutes attached to the decisions identify that the Commission acknowledges that the problems with agricultural suitability on the lands are real, and note that the District, in consultation with the Department of Fisheries and Oceans, is in a position to remedy the problems and ensure that agricultural suitability is restored. The minutes further identify that the Commission has added a new condition, requiring that “soil reclamation” be added to the list of requirements that the District must satisfy in order to advance development in the Albion Flats. Staff will be meeting with ALC staff to discuss these decisions and the new requirement, and will update Council once this information is available. The minutes also note that the Commission believes that its 2011 stipulation of preparation and implementation of an agricultural remedial action plan remains an appropriate course of action. This statement suggests that the Commission co ntinues to support the Districts advancement of a block exclusion for the lands south of 105th Avenue in the Albion Flats. "Original signed by Christine Carter" Prepared by: Christine Carter, MPl, MCIP Director of Planning "Original signed by Christine Carter" for Approved by: Frank Quinn, MBA, P.Eng. GM: Public Works & Development Services "Original signed by J.L. (Jim) Rule" Concurrence: J.L. (Jim) Rule Chief Administrative Officer Appendix A – ALC letter dated August 9, 2013 – 23451 105th Avenue Appendix B – ALC letter dated August 9, 2012 – 23623 105th Avenue $33(1',;$ APPENDIX B District of Maple Ridge TO: His Worship Mayor Ernie Daykin MEETING DATE: August 26, 2013 and Members of Council FROM: Chief Administrative Officer MEETING: COW SUBJECT: Records Management – Review and Next Steps EXECUTIVE SUMMARY: Improved document and records management efforts have been underway at the District for some time. Managing digital and paper files, and organizing corporate memory is a legal requirement, and the thousands of digital files being stored will be difficult to deal with over time without the aid of a management tool. To prepare for the future, the District will need to concentrate corporate practices on managing records in a more focused way. The District has been preparing for implementation of a records management system for several years. Funds for such a system started to be included in the Capital Budget since the 2000 Financial Plan and steps have been taken to improve the management of electronic records which will enable an easier transition to an electronic system. As part of that on-going effort, a Request for Proposals (“RFP”) for a document management software system was undertaken in 2012 and resulted in the selection of a preferred software product line, Laserfiche, and a preferred vendor, Ricoh. The Laserfiche product line has a big presence in document and records management, and has many installs in the government sector. The reseller, Ricoh, is a document management company specializing in managing paper and electronic documents. In an attempt to refine our understanding of the issues of project commitments and organizational capacity, an interim ‘discovery’ research phase was undertaken. The vendor, Ricoh, was retained to investigate more thoroughly how the Laserfiche product line can be utilized at the District, and the costs and efforts required, prior to considering a final commitment to buy and implement the software line. The discovery report provided an analysis of each Department’s opportunities to utilize Laserfiche and settled on a cost and effort commitment reflective of our organizational needs. It is recommended that Council support the expenditure and effort required to purchase and implement the Laserfiche product line to improve our document and records management capabilities for the future. 1 4.2 RECOMMENDATIONS: 1. That Council support the purchase and implementation of the Laserfiche document management software product line, noting that the one-time capital cost is $561,888 and the annual operating cost is $72,819; and further noting that the capital cost has been secured and $50,000 of the annual operating costs have been provided for in previously approved Financial Plans; and further, the Corporate Officer be authorized to execute an agreement with Ricoh Canada Inc. for the purchase; and 2. That the approved Financial Plan be amended to incorporate the additional annual software maintenance required to complete the project, and include the temporary project staffing position which is to be funded from Accumulated Surplus for a 2 year period; and 3. That adopting records management policy and practices, and implementation of an electronic document management system, be a strategic commitment in all Departments during Business Planning for the implementation stage. DISCUSSION: a) Background Context: In 2012, a Request for Proposals process was undertaken to select document management software. The Laserfiche product line, and Ricoh the vendor, were selected to address the document management needs of the District. The District undertook an additional investigation, termed a ‘discovery’, in 2013 to more fully define what is necessary, and what will it cost, to implement the Laserfiche product line of document and records management software tools and have it configured to our needs. Discovery Project: The ‘discovery’ phase was a more focused look at the District and how the solution could fit corporate needs. The project had interviews with key staff in 15 departments and 2 unique areas of responsibility (ie – the emergency program and the records management function). For the discovery, a series of interviews were held with each department to review their business processes, general document and records management needs, and collaboration challenges. The discovery report then maps across to a tactical strategy where Laserfiche can be implemented in all departments in a sequential way, while achieving key benefits quickly. The report also identifies project dependencies and corporate policies that require definition. In particular, it was to answer the following questions: 1. What work does the organization need to complete to prepare for an electronic system? 2. What effort is required for a successful implementation? 3. What is the logical phasing of implementation? 2 What work does the organization need to complete to prepare for an electronic system? In answering this first question, the report recognizes the work that has been accomplished to date, all of which will assist in getting the District ready for a successful program. The remaining decisions that are required revolve around policies and practices: - Retention of email records: how does the District want to archive email records? - Revisions to the file access permissions structure: the file access permissions need revisions to reduce barriers to sharing; - At what point is a document a ‘record’ and how does the District wish to deal with them? - How does the District want to deal with paper in an increasingly digital world? - What integrations are wanted to other enterprise software (eg – property system, financials system, etc.)? Staff are developing policies and procedures to answer these questions and will be coming forward to Council at a later date with a corporate records management program bylaw for Council’s consideration. What effort is required for a successful implementation? In answering the second question, what effort is needed to implement, the document notes that organizational readiness is a key success factor: - Creating and implementing policies that support the technology solution; - Providing resources before, during and after implementation; - Implementing a change management plan; and - Having the ability and willingness to adopt the required changes. In terms of staffing for the effort, the District project manager and Clerk’s records staff will be required through-out the project. IT staff will likely have varied but on-going involvement. Each department’s records representative will be needed for the duration of the implementation in their area. The Department Manager will be needed for the definition and design stages, and for Department close-out. All staff in a department will be needed for the training component. The expected time commitments will be worked out in detail at the appropriate time, but can be expected to be on the order of 40 days effort spread over 2 – 3 people per department. This is not accounting for the District Project Manager’s effort, or the IT Department effort. Finally, for the Clerk’s, HR and Finance Departments, they will have special resourcing requirements as they will be implementing the extra functionality of an automated agenda creation and circulation capability, and digitizing common forms. These Departments, and the IT Department, have anticipated this project for some time and the effort required of them is already included in their business plans. For the rest of the organization, each department will need to build in the requisite time into their business plans for the coming year. As the project gets underway, a temporary staff position will need to be created for a 2 year period that will allow for project and departmental support as the need arises. Further, a project 3 office will need to be set-up, and that the required departmental staff, when it is their turn, should be sequestered as necessary to keep focused on project deliverables. What is the logical phasing of implementation? The report notes the strategy: - Set-up the Laserfiche ‘repository’ and configure it’s associated elements; - Reconstruct our corporate document folders into Laserfiche; - Implement the Agenda Manager functions; - Pilot implementation in Clerk’s Department; - Get HR and Finance into Laserfiche, particularly for common forms; - ‘On-board’ departments one at a time over a 21 month period. The discovery report notes, in Section 5.6.2, 5.6.3 and 6.8, the expected time commitment by area, and a preliminary departmental schedule. For each department, the time required, and staff commitments necessary, will vary by stage as much of it relies on complexity and readiness. These are best-guess estimates given what is known. They will be refined as we go through the planning and design stage which will provide more detail. b) Desired Outcome: Implementing an electronic document and records management system will facilitate the timely retrieval of records and promote the routine disclosure and active dissemination of documents. The system will be configured to enhance the public’s right to access government-held information while protecting the privacy of confidential information. Specifically, the improvements planned will include: - Corporate level protection for “records”; - Improved search and retrieval of documents; - Reduction in “paper” records in the organization; - Enhanced electronic agenda management; - Direct public access to public records; - Improved digital document management; - Electronic forms for improved automated business process flows. c) Strategic Alignment: Ultimately, corporate compliance with records management requirements should be improved, organizational efficiency should be enhanced in terms of collaboration and service delivery to the public, and a foundation will be laid for corporate readiness to operate in an increasingly digital world. Preparation for an electronic tool-set has been underway for some time and this is the next critical step. 4 d) Business Plan/Financial Implications: The project, as currently configured and implemented over a 3 year period, is expected to cost $561,888 in software and professional services, and will see a $72,819 annual charge to the software maintenance account in the IT Department. These are Ricoh’s best current estimates given what they have learned, and what is required, and are considered ‘fixed’. These costs are for the implementation of the base product line across the organization. It includes the business process improvements of an automated agenda manager, and electronic forms for a selection of common forms. Moreover, it includes 600 full user licences which will allow all staff to take full advantage of the automation and record keeping functions. Capital and Operating Expenditure Software Costs $ 296,888 Professional Services $ 265,000 TOTALS $ 561,888 Annual software maintenance $ 72,819 There may be some savings in how the project is designed and the functions implemented, but it also can be expected there will be issues that arise, and new functions required as we proceed. For example, the degree of integration with our current enterprise software systems (eg – Amanda, ROSS, Class, etc.) will not only yield additional business process benefits but also expenses in the future as we grow the system. As well, there will likely be associated costs with respect to moving business processes away from paper files, and in being better able to manage all document types (eg – large format drawings, dealing with large repositories of microfiche files). These costs will be faced as the document and records management program at the District matures. The noted costs are in-line with that experienced in other communities undertaking similar programs1. It is important to note this project and the costs and effort required to implement have been anticipated for some time, and preparations have been made. The capital program has $598,290 set aside in approved budgets for the one-time costs, and the IT operating software maintenance account has been incremented for $50,000 in anticipation of the annual cost impact of maintaining the software. To undertake the program as recommended, the Financial Plan will need to be adjusted for about $23,000 in additional operating costs. There are also additional operating costs associated with a temporary staff position for the duration of implementation. It is recommended the source of funding be committed from Accumulated Surplus for a 2 year period and these costs be included into the approved Financial Plan. 1 Mission and Port Coquitlam have selected the Laserfiche product line and are implementing, or have plans to, their document management solution. 5 e) Alternatives: To achieve business process improvements, and to limit corporate disruption, the recommended product line needs to be installed, configured and used across the organization in relatively short order. As a consequence, there are limited opportunities for alternatives such as phasing or stretching out the installation period. The only alternative choice available is to conclude the current project and not proceed at this time; This alternative is not recommended as the current manual method of records management is not sufficient to meet the growing demands of the public for access to government records and may not meet the requirements of the courts in the event of legal action. CONCLUSIONS: The District has been improving it’s document and records management capability over a number of years. The recommended purchase and installation of the Laserfiche software product line is the next step in securing a set of management tools that will support our efforts for the future. The District will need to move forward in this area as document and information access and security are paramount expectations of the public and of legal mandates. As well, greater employee efficiency is anticipated as complex requirements, collaboration, quick search and response times, will lead to business process improvements and better customer service. And finally, the digital corporate memory will be more appropriately managed for the foreseeable future. “Original signed by J. Bastaja” _______________________________________________ Prepared by: J. Bastaja, B.A., M.R.M. Director Corporate Support “Original signed by C. Marlo” _______________________________________________ Prepared by: C. Marlo, Manager of Legislative Services “Original signed by P. Gill” _______________________________________________ Approved by: P. Gill, BBA, CGA General Manager: Corporate and Financial Services “Original signed by J.L. (Jim) Rule _______________________________________________ Concurrence: J.L. (Jim) Rule Chief Administrative Officer 6 District of Maple Ridge TO: Mayor Ernie Daykin MEETING DATE: 26-August-2013 and Members of Council FILE NO: FROM: Chief Administrative Officer MEETING: Council Workshop SUBJECT: Financial Update EXECUTIVE SUMMARY: This report provides a financial update to the end of June, the half-way point of our fiscal year. Forecasts of year-end results have not been provided as there is not yet enough data available to make accurate predictions. The majority of revenues have been realized and expenses are at slightly less than 50% of financial plan targets; capital expenditures are at $3.95 million. Overall, results are in line with expectations. RECOMMENDATION: None required – information only DISCUSSION: Year-to-date financial activity Our business cycle sees the majority of revenues, primarily property taxes, earned in the first part of the year, and the bulk of our expenditures, particularly for capital investment, incurred in the latter part of the year. The reason for this is seasonal variability in our expenses. While June represents 50% of the year, it’s normal to see revenues at, or close to, financial plan targets, expenses slightly below 50% and expenditures for capital investment well below 50% of financial plan amounts. The purpose of this report is to provide an overview of financial results to the end of June in the General Revenue Fund, the Utilities, and the status of the capital program. Forecasts have not been provided, as predictions of year-end results based on six months of activity are unlikely to be accurate. Overall, results are in line with expectations at this point in time. General Revenue As noted above, the bulk of our revenue is received in the first half of the year. At the end of June we had realized revenues of $115.2 million against a budget of $126.8 million. The largest share of our revenue is generated through property taxation and at the end of June the majority of our property taxes had been realized. Municipal property tax revenue totals $65.6 million with an additional $0.9 million for utility fees at the end of June. Also included on the property tax bills are user fees of $16.7 million for sewer and water, and the amounts we are required to collect for other agencies; in 2013, this amounted to $38.6 million. Figure 1 shows the breakdown of taxes collected for municipal purposes, utility charges, and amounts collected for other agencies. Final amounts for 2013 may be affected by supplementary adjustments issued by BC Assessment. 1 of 7 4.3 Figure 1: Breakdown of property tax revenue compared to tax bill: At the mid way point of the year, investment income is at $1.1 million, meeting our budget target of $1.1 million, with an average rate of return of approximately 2.5%. Our financial plan targets take into account planned spending, both operational and capital, over the long-term horizon, and the current investment climate of lower returns to ensure that we maintain a sustainable income flow over time. When planned spending is delayed, as is often the case with our capital program, we have a larger pool available to investment, resulting in a favorable variance in investment income. Building permit revenues have fluctuated over the past five years, missing financial plan targets in 2009, 2011 and 2012. In order to comply with accounting rules, the fiscal year for building permits runs from November through October, so the 2013 fiscal year is 67% complete at the end of June and revenues of $1.126 million, or 65%, have been realized against a budget of $1.734 million. To date, Town Centre Investment Incentive Program (TCIIP) fee are approximately $66,000. This is reflected in the building permit revenue number noted above. In order to manage the impact of volatility in building permit revenues, Council established a reserve account a number of years ago. In years where building permit revenues exceed financial plan targets, a portion of the favourable revenues are transferred into the reserve so that in years where financial plan targets are not realized we can draw on the reserve to minimize the impact of that MFA 0.003% Dyking District 0.567% BCA 0.866% GVRD 0.845% BC Transit 5.193% School 29.269% Utility Fees 0.895% Municipal Taxes 62.362% $65,573,731 $5,460,939 $30,776,866 $941,135 $2,860 $596,596 $910,432 $888,182 2 of 7 shortfall. At this time it does not appear that we will need to use the reserve this year. At the end of June, the balance in the reserve was $1.6 million. Expenses include the cost of goods and services, labour and debt servicing and are grouped by the functional area (segment) in which they are incurred. The departments included in each segment are detailed in Figure 2. Figure 2: Breakdown of Departments in Each Reporting Segment General Gov’t Protective Svc Recreation Planning; Public Health & Other Transportation Human Resources Police Parks Planning Engineering Clerks Fire Leisure Svc Recycling Operations Administration Bylaws Youth Svc Cemetery Drainage Finance Inspection Svc Arts Social Planning Roads Purchasing Emergency Svc Library Information Svc Legislative Svc Economic Dev Communications Overall, expenses are in line with expectations and costs are within the allotted budget envelopes in all areas as seen in Figure 3. Further discussion on each segment follows. Figure 3: General Revenue Expenses The majority of costs Protective Services are for the delivery of police and fire protection services. At the end of June costs associated with the RCMP contract are within the budget envelope. In the Fire 48% 46% 42% 42% 46% - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 Actual Budget 3 of 7 Department, costs are slightly higher than 50% of their budget envelope due to retroactive pay associated with the recently completed contract negotiations with the IAFF. Savings are expected for debt servicing associated with borrowing for Fire Hall #4 that has not yet been accessed. Funding for this debt servicing will be provided from the Fire Department Capital Acquisition Reserve. Overall, department costs in this reporting segment are as expected for the end of June. In Recreation, costs overall are in line with expectations. Overall General Government costs are at 42% of budget for the year. The 2013 budget provided $1.07 million towards the District’s incentive program. To date we have issued payments totaling $100,000 for partnering agreements under the TCIIP; any further payments issued this year will be dependent on eligible activity in the Town Centre Areas. Council has dedicated this funding to the incentive program and the timing of payments is dependent on eligible activity. Any unspent monies remaining at the end of 2013 will be reserved for 2014. As part of our year-end wrap up this year we will need to provide some funding for the implementation of a new accounting standard dealing with liabilities related to contaminated sites as discussed at the Audit and Finance Committee meeting of May 6, 2013. Costs associated with one time projects for the Transportation segment have not yet been realized. Funding for projects required but not completed by year-end will be transferred to reserves to allow work to continue on them in 2014. The departments in this reporting segment experience a number of seasonal influences that affect their expense patterns, snow and ice control providing a prime example. In the Planning & Public Health segment debt for the cemetery expansion has not yet been borrowed as we have not acquired the land yet. Additionally, funding has been set aside for various projects for which costs have not yet been realized. Sewer and Water Utilities The District operates the Sewer and Water Utilities as self-funding entities. This means that the sewer and water levies collected on the property tax bill, as well as metered charges must be sufficient to meet the current year operating costs as well as provide for the long-term capital needs of the utilities. Large portions of the costs in both utilities are passed on to the District from Metro Vancouver Regional District and as such, the District doesn’t control increases in those charges. In order to smooth the impact of those rate increases on our ratepayers, Council has adopted a rate stabilization policy. This may result in a deliberate accumulation of surplus amounts in the utilities for a period of time followed by a deliberate draw down of those amounts to fund infrastructure costs, such as the District’s share of large regional projects. In the Sewer Utility, the 2013 budget for expenses is $8.1 million; $5.6 million, or 69%, of this is remitted to Metro Vancouver for our share of operating and maintaining the regional sewer system. The remaining $2.5 million provides for the maintenance and operation of the municipal sewer system. Capital costs to expand the system and replace aging infrastructure are not included in these amounts as they’re funded through our capital program. In the Water Utility, the 2013 budget for expenses is $18.01 million. Of this amount $5.6 million is for our share of regional infrastructure projects and an additional $7.6 million is for water purchases, combined this amounts to 73% of the 2013 budget. The remaining $4.9 million provides for the operation and maintenance of the municipal water distribution system. As noted for the Sewer 4 of 7 Utility, the capital cost to expand the system and replace aging infrastructure are not included in the noted amounts as they’re funded through our capital program. The data in Figure 4 shows the proportion of budget in each utility that is for the regional district. For the Sewer Utility, this represents our share of operating the regional sewer system and in the Water Utility for direct water purchases and regional water infrastructure projects. Figure 4: Break down of Sewer & Water Utility Budgets June represents 50% of the year and, logically, we’d expect expenses to be approximately 50% of budget, similar to the General Revenue Fund. That’s not the case in the utilities due to timing issues. For the Sewer Utility, payment to the Regional District for our share of the operation and maintenance of the regional system was made in August. In the Water Utility, we had only been billed for 3 months of water purchases as at the end of June; additionally, we expect to be billed up to $4.2 million for regional infrastructure projects currently underway. At this point, indications are that expenses in both utilities will be within budget at the end of 2013. Capital Planned capital investment for 2013, net of expected developer contributions, is $77.67 million. This amount is comprised of new projects approved for 2013, as well as projects approved by Council in previous years. It is not unusual for capital projects to take more than one year to complete. The time required to complete a project has to allow for things such as public input, detailed design work, land acquisitions, development, and negotiating agreements with other levels of government or other agencies. In cases where there’s a possibility of sharing costs with another agency, we need to demonstrate that our share of funding for the project is secured. This is accomplished by including the project in the current year capital program, but the project does not proceed until the outside funding is secured. Figure 5 provides an overview of how the 2013 capital program is impacted by the items noted above. - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 Sewer Water Maple Ridge Regional Infrastructure Metro Vancouver 5 of 7 Figure 5: Breakdown of 2013 Capital Program As at the end of June, spending on capital projects totals $3.95 million. We typically see higher levels of capital spending starting in the late summer and through the latter part of the year as work proceeds on projects subject to time restrictions, such as from the Fisheries Department, and as contractors’ billing catches up to work they have completed. At this point in the year, it is too early to predict what the total investment in capital will be at the end of the year. In addition to investment in annual programs to renew our roadways, sanitary sewer & water systems, some key projects that are in the works include: • Road works on Lougheed Highway between 226St to just east of the new Community Gaming Centre • The continuation of road improvements on 122 Ave east towards 224 St. • Replacement of the 232St bridge over the North Alouette River. • Improvements at the Albion Parks Sports Complex • Pump station upgrade at 225 St. Conclusions This report provides an update on the District’s financial activity to the end of June, the mid point of the year. Overall results are in line with expectations at this time. Original signed by “Catherine Nolan”_________________ Prepared by: Catherine Nolan, CGA Manager of Accounting Original signed by “Paul Gill”________________________ Approved by: Paul Gill, CGA GM, Corporate and Financial Services Original signed by “Jim Rule”_________________________ Concurrence: J.L. (Jim) Rule Chief Administrative Officer Planned Capital Investment 94.17 Less:Anticipated developer contribution (16.50) *Recorded at year-end Tied to funding frm other agencies / levels of gov't (13.53) *Will proceed when outside monies secured Early stages of design (22.54) *Will proceed to construction in the future Tied to development / review (13.63) *Will proceed when related development occurs Projects in progress 27.97 6 of 7 Appendix A Actual Adopted Budget Revenues Taxes and grants in lieu 65,573,731- 66,987,869- Fees & Other Charges 7,450,280- 14,400,397- Investment income 1,122,637- 1,100,000- Proceeds and Gains 108,951- - Government Transfers 318,638- 1,998,764- Gaming revenues 222,655- 500,000- Equipment 1,513,951- 2,531,026- DCC & Other Contributed Revenue 282,471- 392,293- Collections for others 38,635,874- 38,879,446- Total Revenue 115,229,188- 126,789,795- Expenses (excluding amortization) General Government 6,700,310 15,791,336 Protective Services 15,865,523 32,922,222 Transportation 4,043,915 9,433,661 Planning; Public Health & Other 2,259,863 4,912,121 Recreation 8,932,386 19,139,615 Principal Payments 1,274,133 2,610,190 Collections for Others 38,635,874 38,879,446 Total Expenses 77,712,004 123,688,591 Transfers Transfers from reserve accounts 11,660,112- 13,650,926- Transfers to own reserves 9,696,388 11,026,721 Transfers to reserve funds 3,975,013 3,177,229 Transfers to GCF (fund inventory change) Transfers to Capital (Capital Program)2,844,832 Interest transferred to reserve accounts 54,221 Net Transfers 2,065,509 3,397,856 General Revenue Annual Surplus (to June 30)35,451,674- 296,652 General Revenue Accumulated Surplus - beginning of year 6,091,162- 6,091,162- General Revenue Accumulated Surplus - end of June 41,542,837- 5,794,510- General Revenue Fund Analysis For the 6 months ended June 30, 2013 7 of 7 District of Maple Ridge TO: His Worship Mayor Ernie Daykin DATE: August 26, 2013 and Members of Council FILE NO: FROM: Chief Administrative Officer ATTN: Council Workshop SUBJECT: 2013 Business Class Property Taxation EXECUTIVE SUMMARY: It has been the practice of this municipality to review our tax rates to make sure that they are reasonable in relation to other municipalities in the lower mainland. In May of 2007, Council was presented with information about property taxation for the Business and Light Industry classes, which indicated that rates in Maple Ridge were competitive with other lower mainland municipalities. Our annual reviews since then have confirmed our competitiveness. This report examines the tax rate assessed to Business Class 6 properties in 2013. RECOMMENDATION: This report has been provided for information only. No resolution is required. DISCUSSION: There are a number of ways to look at the taxes assessed against properties by reviewing: 1.The municipal tax rates to see where the District ranks in comparison to other municipalities. While this type of analysis is straightforward to accomplish, it does not account for the differences in assessed property values from jurisdiction to jurisdiction. 2.The municipal tax rate assessed against one class, as compared to another class. In this case, the Business Class 6 municipal tax rate is compared to the Residential Class 1 municipal tax rate using a ratio that is referred to as the tax “multiple”. While this method looks at the relative tax burden amongst classes, it does not account for variable assessment value changes amongst property classes. 3.A sampling of eight commercial businesses from within Maple Ridge. We will look at the property assessments and municipal taxation and the year to year changes from 2009 to 2013. This report looks at the District’s Business Class 6 municipal tax rate from these three perspectives. 4.5 1. Municipal Tax Rate Comparison All things being equal, one would expect municipalities with the highest property values to have the lowest tax rates and municipalities with lower assessed values would have higher tax rates. This is confirmed with West Vancouver, which has the lowest Business Class 6 municipal tax rate, and Mission, which has the highest municipal tax rate. There are some anomalies, however, such as New Westminster and Coquitlam, which have tax rates that are relatively close to the tax rate in Maple Ridge even though property values are likely higher in those areas. As shown in Figure 1, in 2013, the District’s Business Class 6 tax rate of $12.2307 per $1,000 of assessed value ranks as being fifteenth lowest of the nineteen lower mainland municipalities that were surveyed. Of the municipalities, the Business Class 6 tax rates range from a low of $4.2340 per $1,000 in West Vancouver, to a high of $14.8879 per $1,000 in Mission. Eleven municipalities increased their Business Class 6 tax rates from their 2012 rates, while the remaining eight decreased their rates. Figure 1: Business Class 6 - Municipal Tax Rates – lowest to highest Note: Tax rates have been normalized to remove fees for dyking, BIA, etc. 2. Tax Multiple Comparison The tax multiple looks at the relative tax burden against Business Class 6 as compared to Residential Class 1. The term “multiple” is often used to represent the ratio of the property tax rate Municipality Business Rate Rank Business Rate Business Rate West Vancouver 4.23400 1 4.75440 4.94390 Surrey 6.98799 2 7.07036 7.41846 Richmond 7.62851 3 7.53569 8.03836 Vancouver 8.20424 4 8.78096 9.19882 North Vancouver, District 8.60129 5 8.53774 8.83668 North Vancouver, City 8.61408 6 9.14484 9.56623 Langley, City 8.78440 7 8.60500 8.87270 Burnaby 9.46120 8 10.10000 10.03070 Langley, Township 9.82990 9 9.48130 9.62380 Port Moody 10.04190 10 9.84060 9.82960 Chilliwack 10.13818 11 9.93148 9.90325 Delta 11.02225 12 11.14928 11.03829 Port Coquitlam 11.86070 13 11.79410 12.17660 Pitt Meadows 12.11050 14 11.85360 12.67130 Maple Ridge 12.23070 15 11.75100 12.10450 New Westminster 13.01990 16 13.55380 14.12260 Abbotsford 13.28372 17 11.86946 11.55196 Coquitlam 13.75540 18 14.11730 14.78250 Mission 14.88790 19 14.62160 15.10310 2013 2012 2011 Page 2 of 7 for a particular class or type of property where the property tax rate for the Residential Class is considered 1.0. Therefore, the “Business Class multiple” would represent the ratio of the tax rate for the Business Class to the Residential Class. The calculation is done by taking the Business Class rate and dividing it by the Residential Class rate. A Business Class multiple of 3.0 would mean the rate applied to the Business Class is 3.0 times more than the Residential Class rate. This has also been referred to as the “property tax gap”. The main weakness of this indicator is that it is greatly affected by varying market value fluctuations between the classes. In 2013, the assessed values for residential properties in Maple Ridge decreased in market value approximately 1%. As a result, the District’s Residential Class tax rate went up to $4.2833 per $1,000 of assessed value, an increase of about 4.8% to generate the funding required in the Financial Plan. 2013 assessed values for commercial properties increased in assessed market value only slightly, about 0.3%, and the Business Class tax rate increased to $12.2307. In accordance with Council Policy, each year we adjust our tax rates for market value assessment fluctuations; not all jurisdictions and taxing authorities follow this practice. As shown in Figure 2, in 2013, the District’s municipal tax rate multiple is 2.9, and ranks as fifth lowest of the nineteen surveyed municipalities. Our multiple is below the average multiple of 3.2. Figure 2: Business Class 6 - Multiples, based on General Municipal Rates – lowest to highest Municipality Business Rate Multiple Rank Multiple Multiple Chilliwack 10.13818 2.1 1 2.1 2.2 Langley, City 8.78440 2.3 2 2.3 2.4 West Vancouver 4.23400 2.5 3 2.6 2.4 Abbotsford 13.28372 2.5 4 2.5 2.8 Maple Ridge 12.23070 2.9 5 2.9 3.1 Surrey 6.98799 2.9 6 3.0 3.1 Port Moody 10.04190 3.0 7 3.0 3.1 Langley, Township 9.82990 3.0 8 3.0 3.1 Pitt Meadows 12.11050 3.1 9 3.2 3.5 Port Coquitlam 11.86070 3.1 10 3.2 3.3 Delta 11.02225 3.2 11 3.2 3.2 Mission 14.88790 3.2 12 3.2 3.3 North Vancouver, City 8.61408 3.5 13 3.8 4.0 Richmond 7.62851 3.6 14 3.8 3.7 North Vancouver, District 8.60129 3.6 15 3.6 3.6 New Westminster 13.01990 3.7 16 3.8 3.9 Burnaby 9.46120 4.2 17 4.5 4.2 Vancouver 8.20424 4.3 18 4.3 4.3 Coquitlam 13.75540 4.5 19 4.7 4.8 2013 2012 2011 Page 3 of 7 3. Business Class 6 Municipal Portion of Property Taxes Comparison Finally, the municipal portion of the property tax dollar impact on the Business Class 6 taxpayer is examined. In past years we looked at three different business types from a selection of municipalities in the lower mainland, including Maple Ridge. This data was supplied by BC Assessment. Each year we encountered complications with this data. Because we were dealing with theoretical properties, we didn’t have actual properties to verify the data and to ‘see’ what those properties might look like (except on paper) it was impossible. Additionally, interpretation of what a ‘typical’ hypothetical property might look like might change from appraiser to appraiser. So while on a yearly basis, the data might look satisfactory, when we looked at it over several years, the data fell short. In addition to this, comparing similar businesses from one municipality to another was challenging. No municipality is identical and each has their own special uniqueness which makes it difficult to make an ‘apples’ to ‘apples’ comparison. This year we are trying a different approach. We have selected eight sample commercial properties from various locations within Maple Ridge and will look at the changes in property assessments and the municipal portion of the property taxes over a five year period, from 2009 to 2013. We will look at the following commercial property types: 1. Commercial office in a stratified building 2. Retail store 3. Convenience store with gas station 4. Small commercial building with a coffee shop and two other commercial units 5. Coffee shop 6. Family restaurant 7. Bank 8. Big box retail store Figure 3 shows the property assessment values and the municipal portion of the property taxes for each of the eight properties from 2009 to 2013. First we’ll look at the property assessment values. Note that within BC Assessment’s Business property class is that there are numerous categories that make up the Business Class, including all of the commercial property types listed above and many more. While assessed property values for one of the category types may experience an increase in values, other categories may experience decreases. On looking at the assessed property values for the sample properties, we note that there is some variability in the year to year changes in value throughout the five year period. From year to year, assessed property values have increased as much as 72.4% for the bank property in 2012, and decreased 10.5% for the big box store in 2009. We contacted BC Assessment about the rather large increase in assessed value for the bank property. Staff at BC Assessment advised that they had conducted a review of all banks in the Fraser Valley Assessment Area as result of a number of appeals and new lease information they had received. Through this review, BC Assessment made a decision to use a consistent lease rate for banks throughout the Fraser Valley and as a result some properties saw significant increases in value. Depending on where the starting valuation point was, the increases were different in terms of Page 4 of 7 percent change. BC Assessment staff advised that they experienced many property assessment appeals as a result of these changes, but in the end the values were confirmed through their appeal process. In their news release of January 2, 2013, BC Assessment advised that owners of commercial and industrial properties in the Fraser Valley would typically see changes in their 2013 property assessments ranging from -5% to +5%. The changes in assessed values for our commercial sample properties in Maple Ridge reflect this range. From 2012 to 2013, the change in assessed property values in the sample properties ranges from an increase of 4.2% for the convenience store/service station to a decrease of 3.8% for the family restaurant. Next we’ll look at the municipal portion of the property taxes for the sample properties. As there is variability with the assessed property values, there is also variability with the municipal property taxes. Local governments do not have the legislative authority to smooth tax increases amongst properties. Over the five year period from 2009 to 2013, yearly changes for the municipal portion of the property taxes increased as much as 67.4% for the bank property in 2012, and decreased 5.4% for the big box store in 2009. From 2013 to 2012, the changes in municipal property taxes range from an increase of 8.5% for the convenience store/service station to an increase of 0.1% for the family restaurant. Figure 3: Sample Commercial Properties -History of Assessed Property Values and Municipal Property Taxation Assessed Values 2009 2010 2011 2012 2013 1 Commercial Office-Strata 212,000 264,600 264,700 264,700 270,400 2 Retail Store 800,000 773,000 807,000 941,000 977,000 3 Convenience Store/Service Station 1,102,000 1,154,000 1,151,000 1,160,000 1,209,000 4 Small Commercial Building w/Coffee Shop & 2 Other Units 1,225,000 1,319,000 1,324,000 1,472,000 1,472,000 5 Coffee Shop 1,302,000 1,387,000 1,387,000 1,491,000 1,537,000 6 Family Restaurant 2,180,000 2,260,000 2,260,000 2,443,000 2,350,000 7 Bank 2,047,000 2,103,000 2,103,000 3,626,000 3,626,000 8 Big Box Retail Store 5,463,000 5,804,000 6,146,000 6,147,000 6,147,000 Total 14,331,000 15,064,600 15,442,700 17,544,700 17,588,400 Change in Assessed Values 2009 2010 2011 2012 2013 1 Commercial Office-Strata 0.0%24.8%0.0%0.0%2.2% 2 Retail Store 0.0%-3.4%4.4%16.6%3.8% 3 Convenience Store/Service Station 0.0%4.7%-0.3%0.8%4.2% 4 Small Commercial Building w/Coffee Shop & 2 Other Units n/a 7.7%0.4%11.2%0.0% 5 Coffee Shop 0.0%6.5%0.0%7.5%3.1% 6 Family Restaurant 0.0%3.7%0.0%8.1%-3.8% 7 Bank 0.0%2.7%0.0%72.4%0.0% 8 Big Box Retail Store -10.5%6.2%5.9%0.0%0.0% Total -4.6%5.1%2.5%13.6%0.2% Description Description Page 5 of 7 Municipal Taxation 2009 2010 2011 2012 2013 1 Commercial Office-Strata 2,492 3,106 3,204 3,110 3,307 2 Retail Store 9,403 9,075 9,768 11,058 11,949 3 Convenience Store/Service Station 12,952 13,548 13,932 13,631 14,787 4 Small Commercial Building w/Coffee Shop & 2 Other Units 14,398 15,485 16,026 17,297 18,004 5 Coffee Shop 15,303 16,284 16,789 17,521 18,799 6 Family Restaurant 25,623 26,533 27,356 28,708 28,742 7 Bank 24,060 24,690 25,456 42,609 44,349 8 Big Box Retail Store 64,210 68,141 74,394 72,233 75,182 Total 168,441 176,863 186,926 206,168 215,118 Change in Municipal Taxation 2009 2010 2011 2012 2013 1 Commercial Office-Strata 5.7%24.7%3.1%-2.9%6.3% 2 Retail Store 5.7%-3.5%7.6%13.2%8.1% 3 Convenience Store/Service Station 5.7%4.6%2.8%-2.2%8.5% 4 Small Commercial Building w/Coffee Shop & 2 Other Units n/a 7.6%3.5%7.9%4.1% 5 Coffee Shop 5.7%6.4%3.1%4.4%7.3% 6 Family Restaurant 5.7%3.6%3.1%4.9%0.1% 7 Bank 5.7%2.6%3.1%67.4%4.1% 8 Big Box Retail Store -5.4%6.1%9.2%-2.9%4.1% Total 0.8%5.0%5.7%10.3%4.3% Description Description Page 6 of 7 CONCLUSION: It is important for the District of Maple Ridge to review our municipal tax rates to make sure they are reasonable in relation to other municipalities. This is not a simple task and each indicator has its own strengths and weaknesses, and this is why we look at a variety of indicators over a period of time. The District’s Business Class 6 municipal tax rate in 2013 is fifteenth lowest of the nineteen surveyed municipalities. This is not unexpected as most municipalities in the survey group have higher property assessment values. It is noteworthy that tax rates in Coquitlam and New Westminster are higher than the District’s, even though those communities likely have property assessment values that are higher than those in Maple Ridge. The District’s Business Class 6 multiple continues to rank lower than the average. In 2013, property assessment values for residential properties went up slightly and the tax rate increased, while the property assessment values of commercial properties increased even less and the tax rate was increased. With respect to actual municipal property taxes, this year we tried a different approach and looked at the municipal property taxes for eight sample properties within Maple Ridge. As there was some variability with the assessed property values for these properties, there was also some variability around the municipal property taxes as well. Overall, our data indicates that the District’s Business Class 6 tax rates are reasonable when compared to other lower mainland municipalities. “Original signed by Jacquie Bergman”________________ Prepared by: Jacquie Bergmann Research Technician “Original signed by Paul Gill”_________________________ Approved by: Paul Gill, BBA, CGA General Manager, Corporate & Financial Services “Original signed by J.L. (Jim) Rule”______________________ Concurrence: J.L. (Jim) Rule Chief Administrative Officer :jgbb Page 7 of 7 From: Marisa Newton [mailto:mnewton@miabc.org] Sent: August-12-13 12:29 PM To: Ron Riach Subject: MIABC Voting Delegate The 26th Annual General Meeting of the Subscribers of the Municipal Insurance Association of British Columbia is scheduled to take place at 3 PM on Tuesday, September 17th, 2013 in the MacKenzie Room, Fairmont Waterfront Hotel, Vancouver. This year for the first time, the MIABC will be hosting a reception following the AGM in the Waterfront Ballroom, Fairmont Waterfront Hotel, until 6pm. At the AGM there will be two resolutions. The first will expand the definition of "Insured Party". The second will allow the MIABC to offer property and other insurance coverages. There will also be an election for one director at large for a two year position. Interested candidates should contact Director Glenn McLaughlin, Chair of the Nominating Committee, c/o the MIABC office. In accordance with Article 6.13 of the Reciprocal Agreement, the following Delegate and two Alternates have been registered with the MIABC to vote your interests. Any change to this information shall require a resolution of Council/Board to be forwarded to the MIABC by September 4th, 2013. Also, to improve communications, can you please provide us with e-mail addresses for the delegate and alternates at your earliest convenience? Voting Delegate: Councillor Cheryl Ashlie Email address: cashlie@mapleridge.ca Alternate #1: Councillor Michael Morden Email address: mmorden@mapleridge.ca Alternate #2: Email address: Regards, Marisa Newton 5.1