That, with the continued extension by the province of the 2017-2020 assessment cycle… be approved

2:02:19So this is a standard annual item. We do have a presentation from james krauters. So we'll uh

2:02:26open the

2:02:27podium for that presentation

2:02:30And I'll pass the floor over to staff

2:02:55Good morning

2:02:56Good morning. Thank you chair krump

2:02:59Uh, good morning everyone. I'm james krautter deputy treasurer manager of treasury and revenue for the city of guelph

2:03:07I'm here to talk about tax policy

2:03:09We do it on an annual basis

2:03:11And this is the purpose of the report is to

2:03:16We'll just wait for the

2:03:18I'm in charge here. Sorry

2:03:21purpose of the report

2:03:23Is to provide information and recommendations on tax ratios

2:03:28And rates this is a combination of decisions that have already been made by council

2:03:32From a perspective of overall tax policy at the last reassessment budget, etc

2:03:39um

2:03:40approvals required to

2:03:42Set in place the billing for the final tax bill

2:03:47First installment the end of june

2:03:50And it reflects the updated

2:03:532026 assessment by empac. So some key highlights

2:04:00Overall budget was just over

2:04:03383 million dollars

2:04:05And i'll refer to that sort of as the size of the pie later on in the presentation

2:04:10Uh hospital levy of three hundred and seventy five thousand will be collected as a small additional levy on every tax bill

2:04:19We have assessment growth of three hundred and thirty five million dollars in

2:04:242025 which resulted in just approximately

2:04:28four point seven million dollars in additional

2:04:31um taxation

2:04:33And while I mentioned that we're using 2026 assessment values from empac

2:04:39It's still based upon the provincial

2:04:432016 current value assessment and that's set through legislation

2:04:48As the reassessment remains on pause

2:04:55If we go back to september of last year, uh council approved the affordable rental housing subclass

2:05:02So that was a step that was made

2:05:04By council here and a handful of other municipalities across the province

2:05:09um

2:05:10The eligible criteria ensures that there has to be agreements for affordability with government entities

2:05:17empacs responsible for

2:05:19Defining those properties and putting them on the assessment rule. There were none that were on the assessment rule for

2:05:262026 empac is still in the process of gathering that information

2:05:31They've actually now created new tax codes for that development

2:05:36And in the fall of 2026, they will do

2:05:41Mid-year assessment notice changes. So if there's anything that's eligible with engulf, that will be the time that we know that

2:05:54So I talked about sort of the size of the pie that

2:05:56383 million dollars

2:05:59Um, well, this doesn't look like a circle. It provides you some clarity about how we slice that pie through tax policy

2:06:07So the black bars are what is included or the darker bars or what's included on the assessment rule

2:06:14So for instance, if we were to split that pie strictly by assessment

2:06:1874 of that pie would be split on the residential side

2:06:22multi residential 5 11

2:06:25On the commercial four in the industrial and the exempt portion would have 6 of that overall pie

2:06:31As we know the exempt portion

2:06:33Of the assessment doesn't pay any taxes and then with tax ratios

2:06:38everything shifts

2:06:40So the lighter slides then the lighter bars represent how we will be slicing the overall pie

2:06:54We talk about the residential sector and the median single family detached dwelling

2:07:00Is assessed at 411,000 in the city of guelph. That is up

2:07:06$1,000 from last year

2:07:08Just as new properties get built the and improved over the city that average while we're still looking at the 2016

2:07:17Sorry median that median value while we're still looking at the 2016

2:07:22CVA has been increasing slightly over time

2:07:26So when we look at the overall impact to the that median residential property

2:07:31We see a slight change

2:07:33$12 and 45 cents on an annual basis just related to assessment role impact

2:07:39The budget impact is

2:07:41392

2:07:43$5 and 7 cents that hospital levy that we talked about of the 375,000 that impact the resident median residential property

2:07:51Is $5 and 39 cents for an overall impact of

2:07:56$409 and 91 cents

2:07:59That's assuming the same tax ratios as utilized in

2:08:042025

2:08:08and similarly across all tax classes that

2:08:12increase would be the same

2:08:14For the budget impact and the hospital impact to total 7.7

2:08:197%

2:08:25The other thing that we need to be cognizant of is in 1998 the city of guelph council passed

2:08:33And adopted an optional tax class

2:08:36Of new multi-residential was one of the few municipalities in 98 that did that was progressive and it was done to

2:08:44Incent overall

2:08:46um the development of multi-residential dwellings

2:08:51Um, and at that time the ratio was set at one. So when we talk about ratios, that's the

2:08:57relative impact between the residential rate and then the individual class

2:09:03So the residential

2:09:05rate for residential and new multi-residential are the same in guelph and that has been since 1998

2:09:12For the new multi-residential sector

2:09:16um

2:09:17It puts that building into that class for 35 years

2:09:21So from the date that it enters to 35 years later

2:09:25It will jump out of new multi-residential and legislatively go to multi-residential

2:09:31So right now we have ratios of one for new multi-res

2:09:35And we have 1.786 for multi-res

2:09:39We need to be cognizant of what happens at that 35 year mark. So 98 35 years was a long time. I started in the municipal sector in 99

2:09:512033 was a long time away. We're approaching that very quickly

2:09:56So we need to be cognizant of what happens at that point in time

2:10:00We have one property that will flip in guelph in

2:10:052033

2:10:06We have three more properties that will flip between 2033 and 2037

2:10:13And then the majority of the properties are in that 2014 time frame. So if we do quick math, that's like 20

2:10:2348 time frame

2:10:25but something that we need to be cognizant of because that impact will be

2:10:30significant to those individual

2:10:32multi-residential units

2:10:34Probably about a thousand dollars per unit increase if nothing is done with the current tax ratios

2:10:41So what are our options? So our options are to

2:10:45start looking at

2:10:49Amalgamating those

2:10:52Ratios and bringing the multi-res down to the new multi-res ratio of one

2:10:58The other options are and which we're suggesting is we wait till the reassessment

2:11:04Whenever that occurs the provincial wide reassessment and look at tax shifts at that time and make a strategic plan from that perspective

2:11:12and we also continue to

2:11:15Lobby the provincial government for some changes in

2:11:20legislation to extend that new multi-residential tax class

2:11:26What would it look like though if we were to begin that sort of strategy of phasing in

2:11:32and reducing the multi-res

2:11:34Ratio now it would be additional increase to that residential property

2:11:40Of 14 dollars and 53 cents across the board for all

2:11:45current

2:11:48Residential properties

2:11:51That looks if you look at the bottom of the slide

2:11:54It increases that we talked about that 7.77 percent earlier without the reassessment or assessment rule impact

2:12:02It increases it to 8.05 percent

2:12:06Um for residential and new multi-residential, but it decreases the multi-residential change down to 2.83 percent

2:12:15So some math and changing of

2:12:20Overall impacts there

2:12:23So if we look at those two options option one

2:12:27Leave it status quo

2:12:29utilize the

2:12:31Rating ratios that we have for 2025

2:12:35We align a review with the new reassessment whenever that may occur

2:12:40We wait for provincial direction to potentially extend the new multi-residential tax class

2:12:46um

2:12:47Or we take an option approach where we start reducing the multi-residential ratio now

2:12:53um and that impact

2:12:56Over an eight year period

2:12:58For the first year is 14 dollars and 53 cents additional to the residential sector

2:13:03So you think of a tax policy as a balloon and when you take that balloon and you push it in one place

2:13:09It's going to expand other places. That's an easy way to talk about it

2:13:13So we're pushing in that multi-residential sector slightly

2:13:17It's going to increase the residential sector, which is the biggest tax class overall

2:13:21If we go back to that other slide, it's like close to 70 percent. So

2:13:26um proposed

2:13:30Tax ratios for 2026 with no changes from 2025 are in front of you here

2:13:38And if there's any other questions

2:13:41We're glad to take them

2:13:42Thanks, we'll open it to uh questions from members of council

2:13:47Anyone on screen with questions anyone in the horseshoe counselor galler questions

2:13:52Um, thank you and to you check around to staff. Thank you, uh, mr. Crowder for that presentation. It's very helpful

2:14:01um

2:14:02So that I can contextualize the

2:14:04The impact the presentation mentioned that if we were to reduce the multi-residential

2:14:10rate from 1.78 to 1.7

2:14:13Uh, it would have an impact of about 14 dollars to multi-residential

2:14:18What what i'm not clear on is the the volume of multi-residential versus

2:14:22um

2:14:23low density residential would it be a proportional increase to

2:14:29to the number of of

2:14:31um single family and duplex homes that are

2:14:34Uh, or would it, you know be diluted more? So what proportion of the city is multi-residential versus low densities?

2:14:44residential

2:14:59Through the chair to councillor Goller

2:15:02So very good question from an overall numbers perspective

2:15:06If we look at page five of nine on the report

2:15:11We have approximately

2:15:13Just under 29 000 single family homes within the city

2:15:20Uh 11 000 just over 11 000 residential condos

2:15:25Um, and we sit with 184

2:15:29apartment buildings

2:15:31I don't know the number of units currently in those 184 apartment buildings, but that gives you sort of the context from that side

2:15:40um overall

2:15:44so

2:15:45so it

2:15:47By looking at these numbers, it wouldn't be that that 14 dollars would be transferred directly. It would be

2:15:53Would it be diluted or concentrated what i'm not understanding is when I see the the property said 11 000 123 for

2:15:59residential condominium units is that the number of individual apartments within that?

2:16:07No, the 11 123

2:16:10Residential condominium units are actually condominiums versus apartments. So single ownership

2:16:17Units within a condominium complex

2:16:20Okay, okay. Okay. Thank you. Thank you for that. I appreciate that and I I understand the recommendation

2:16:26And I I think it makes sense to wait for the province to to give some direction on how to proceed with this. Thank you

2:16:34Any further questions?

2:16:36I oh, we haven't had the recommendations put on the floor of councillor goller and a seconder councillor richardson. Thanks

2:16:42Uh quick question. Um, you mentioned the 35 reduction for affordable housing that we put into our affordable housing policy

2:16:48And I of course I fully support that that direction of council and hope that it's making a difference

2:16:54My question is that under the residential tenancies act the rta requires a landlord to reduce the rent

2:17:03If it exceeds a 2.49 or 2.5

2:17:09Reduction in their taxes. How do we monitor that?

2:17:14So on an annual basis the city looks at

2:17:18The changes in property taxes for multi residential properties if there is a reduction of 2.49

2:17:26Then legislatively the city is required to do two things one notify the landlord initially

2:17:32That that has occurred and then subsequently notify all of the unit

2:17:38That that has occurred and that there may be an appropriate reduction coming in the rent

2:17:45Okay, and then if the landlord does not reduce the rent accordingly

2:17:49It's really up to a tenant to take it to the the ltb. Is that uh up to the up to the tenant to do?

2:17:57Correct. Okay. The motions on the floor then given no other questions. I'll call the vote. Is there anyone opposed to the two motions?

2:18:07Seeing none that motion is carried

2:18:10Thanks so much. I'll look to uh dcao o brian. Uh, are there any service area announcements?

2:18:17To you chair know there isn't and I don't know if miss baker has any

2:18:20Okay, great seeing none

2:18:22Uh, we'll conclude this portion of committee of the whole and I'll pass the chair over to councillor