Overview of HRM Tax System Overview of HRM Tax System Staff Presentation to Tax Reform Committee, February 8, 2007 Staff Presentation to Tax Reform Committee, February 8, 2007

2

Overview Overview

l History of Tax System in HRM l Broad Fiscal Picture l Types of Taxes – What’s in Scope l Residential, Commercial, Business Occupancy l Deed Transfer Tax l User Fees

l Foundations of Current System l Services, Cost, Ability to Pay l Challenges and Risks in Tax Reform

l Sidewalks, Transit, Costing

l History of Tax System in HRM l Broad Fiscal Picture l Types of Taxes – What’s in Scope l Residential, Commercial, Business Occupancy l Deed Transfer Tax l User Fees

l Foundations of Current System l Services, Cost, Ability to Pay l Challenges and Risks in Tax Reform

l Sidewalks, Transit, Costing

3

History of Tax System in HRM History of Tax System in HRM

l 1996 Amalgamation l Market Based System

l 1997 - Merger of former tax systems l Urban, Suburban, Rural general rates

l 1997 – Annual reassessments introduced l was every three years.

l 2002 – Reform of HRM Tax Structure l Fire, Streetlights, Crosswalk Guards

l 2005 – Assessment Cap at 10% l 2005 – Tax Reform Proposed l Regional Plan

l 2008 – Assessment Cap at CPI

l 1996 Amalgamation l Market Based System

l 1997 - Merger of former tax systems l Urban, Suburban, Rural general rates

l 1997 – Annual reassessments introduced l was every three years.

l 2002 – Reform of HRM Tax Structure l Fire, Streetlights, Crosswalk Guards

l 2005 – Assessment Cap at 10% l 2005 – Tax Reform Proposed l Regional Plan

l 2008 – Assessment Cap at CPI

4

Who Pays for What? Who Pays for What?

l After a lengthy public debate ending in July 1997 HRM created three General Tax Rates: l Urban l Suburban l Rural

l Certain key services are included in all three of these tax rates.

l Some services are paid by Area Rate.

l After a lengthy public debate ending in July 1997 HRM created three General Tax Rates: l Urban l Suburban l Rural

l Certain key services are included in all three of these tax rates.

l Some services are paid by Area Rate.

5

Who is Urban, Suburban, Rural? Who is Urban, Suburban, Rural?

l Urban Boundary is Paving Boundary l Includes Halifax, Dartmouth, Most of Bedford, Forest

Hills, Colby Village, Sackville

l Suburban areas l includes Waverley, Fall River, Hammonds Plains, Cow

Bay, Upper Sackville, Kinsac, Montague

l Rural areas l includes all of Districts 1 and 23 and parts of

surrounding areas.

l Urban Boundary is Paving Boundary l Includes Halifax, Dartmouth, Most of Bedford, Forest

Hills, Colby Village, Sackville

l Suburban areas l includes Waverley, Fall River, Hammonds Plains, Cow

Bay, Upper Sackville, Kinsac, Montague

l Rural areas l includes all of Districts 1 and 23 and parts of

surrounding areas.

6

Who Pays How Much More? New Tax Structure Rates in 2007 and Average 1996 Residential Assessment

Who Pays How Much More? New Tax Structure Rates in 2007 and Average 1996 Residential Assessment

Halifax 3,105 3,133 28 0.9%

Dartmouth 1,469 1,386 -83 -5.6%

Bedford 1,694 1,688 6 -0.4%

Sackville 1,272 1,100 -173 -13.6%

Kingswood 1,479 1,693 214 14.5%

Ecum Secum 298 323 25 8.4%

Halifax 3,105 3,133 28 0.9%

Dartmouth 1,469 1,386 -83 -5.6%

Bedford 1,694 1,688 6 -0.4%

Sackville 1,272 1,100 -173 -13.6%

Kingswood 1,479 1,693 214 14.5%

Ecum Secum 298 323 25 8.4% 

Old Tax Bill  $ Change New Tax Bill  % Change

7

Tax Structure Reform -2002 Principles

Tax Structure Reform -2002 Principles

l Everyone Pays for Services Received l Everyone Shares in Paying for Services one

has Access to l Everyone Pays for Basic Universal Services l Commercial Tax Base belongs for the

Benefit of all HRM

l Everyone Pays for Services Received l Everyone Shares in Paying for Services one

has Access to l Everyone Pays for Basic Universal Services l Commercial Tax Base belongs for the

Benefit of all HRM

8 0.000

0.100

0.200

0.300

Bay Road Zone 4 Oyster Pond Musquodoboit Harbour

Zone 3 Prospect Harrietsfield 0.000

0.100

0.200

0.300

Bay Road Zone 4 Oyster Pond Musquodoboit Harbour

Zone 3 Prospect Harrietsfield 

Rural Area Rates were higher than the Urban Rate even though services 

were lower. Tax System encouraged 

Inefficiencies.

Tax Rates for Fire Service Cents per $100 - 2002

Tax Rates for Fire Service Cents per $100 - 2002

9

Change in Property Taxes District 23

Total Change in Tax Dollars -2002

Change in Property Taxes District 23

Total Change in Tax Dollars -2002

$115

­$59 ­$25 ­$36

$112

$91

-$100 -$75 -$50 -$25

$0 $25 $50 $75

$100 $125 $150

Hubbards to Ingramport inclusive (Former District 1)

Boutiliers Point to Head of St.

Margaret's Bay inclusive (Former

District 1)

Goodwood to West Dover inclusive

(Former District 4)

Peggy's Cove to Upper Tantallon inclusive (Former

District 3)

Upper Tantallon (Bay Road Fire

Department and Streetlights)

Upper Tantallon (Bay Road Fire

Department and No Streetlights)

Decr

ease

s / In

crea

ses

$115

­$59 ­$25 ­$36

$112

$91

-$100 -$75 -$50 -$25

$0 $25 $50 $75

$100 $125 $150

Hubbards to Ingramport inclusive (Former District 1)

Boutiliers Point to Head of St.

Margaret's Bay inclusive (Former

District 1)

Goodwood to West Dover inclusive

(Former District 4)

Peggy's Cove to Upper Tantallon inclusive (Former

District 3)

Upper Tantallon (Bay Road Fire

Department and Streetlights)

Upper Tantallon (Bay Road Fire

Department and No Streetlights)

Decr

ease

s / In

crea

ses

Some Homes are within 1 km of Transit and have not paid for it.  They  may have to pay! 

Note: Some averages have been consolidated.

10

Service Rural (Base) General Tax

Rate

Suburban General Tax

Rate

Urban General Tax Rate

Policing, Solid Waste, Recreation Programs, Planning, Libraries, Sports fields, Playgrounds, Administration

Fire Suppression

Street lighting

Recreational and Community Facilities (Capital Costs - Cost Sharing)

Recreational and Community Facilities (Operating Costs) Area Rate

Crosswalk Guards Area Rate

Transit Area Rate Area Rate

Sidewalks Area Rate Area Rate

Fire Hydrants Area Rate Area Rate Area Rate

Water and Sewer

Included in the Urban and Suburban General Tax Rates

Included in the Urban General

Tax Rate

Pollution Control Charge

Approved Tax Structure Model (Effective January 1st, 2003)

Included in the Base General Tax Rate

11

Comparing Operating Expenditures (Excludes education, water, health, social services and housing)

per Dwelling Unit (2003)

Comparing Operating Expenditures (Excludes education, water, health, social services and housing)

per Dwelling Unit (2003) 

4,045 

3,605 3,399 3,427 3,425 

2,826 2,646 

2,367 2,334  2,536 2,313 2,237  2,289 

2,824 

0 

1,000 

2,000 

3,000 

4,000 

5,000 

London

 

Greater Sudb

ury 

HRM 

Victoria 

Kingston 

Vanco

uver 

Thund

er Bay 

Regina 

Hamilton 

Calgary 

Ottawa 

Edmonton 

Montre

al 

Toronto 

Note:  For comparability excludes education, water, health, social services and housing costs in all jurisdictions. 

HRM Benchmark against other cities.

12

Trend in Expenditures Mandatory Provincial versus Municipal

Trend in Expenditures Mandatory Provincial versus Municipal

0% 

5% 

10% 

15% 

20% 

25% 

30% 

35% 

40% 

45% 

50% 

2002/03  2003/04  2004/05  2005/06  2006/07 

Provincial Expenses  Municipal Expenses 

0% 

5% 

10% 

15% 

20% 

25% 

30% 

35% 

40% 

45% 

50% 

2002/03  2003/04  2004/05  2005/06  2006/07 

Provincial Expenses  Municipal Expenses 

Education Rate reduced 1.7% since 2002­2003 

General Tax Rate reduced 8.6% since 2002­2003

13

Comparing Operating Revenues (All Revenues including Education Taxes)

per Dwelling Unit (2003)

Comparing Operating Revenues (All Revenues including Education Taxes)

per Dwelling Unit (2003) 

0 

1,000 

2,000 

3,000 

4,000 

5,000 

6,000 

7,000 

8,000 

9,000 

HRM 

Victoria 

Montre

al 

Vancouver 

Regina 

London

 

Kingston 

Calgary 

Edmonton 

Hamilton 

Thunder Bay 

Greater Sudbury 

Ottawa 

Toronto 

Property Taxes (includes Commercial)  Sales, User Fees, Other  Grants and Transfers 

HRM Benchmark against other cities.

14

Dependence on Property Tax - 2003 Dependence on Property Tax - 2003 

82.6% 

72.9% 72.7% 65.9% 

63.1% 62.7% 62.0% 61.8% 59.5% 57.5% 56.0% 52.3% 

42.0% 44.4% 

0% 

25% 

50% 

75% 

100% 

Greater Sudbury 

Edmonton 

Thunder Bay

 

Toronto 

Kingston 

Hamilton 

Ottawa 

Calgary 

London

 

Regina 

Montre

al 

Victoria 

Vancouver 

HRM 

HRM Benchmark against other cities.

15

Taxes – What’s in Scope Taxes – What’s in Scope

2006-2007 Description Scope Non-Departmental Taxes

>>> Residential Property Tax 240,327,000 Assessment Based Yes >>> Resource Property Tax 1,747,900 Assessment Based Yes

Sub-Total 242,074,900 >>> Commercial Property Tax 131,417,000 Assessment Based Yes >>> Business Occupancy Tax 38,624,900 Assessment Based Yes

Sub-Total 170,041,900 General Tax Rates 412,116,800

>>> Fire Protection Tax 8,958,400 Assessment Based Yes

>>> Other Property Taxes -193,900 Forest, Farm Taxes Yes >>> Grants-in-Lieu/Tax Agreements 30,848,200 Mostly Assessment Based Yes

>>> Deed Transfer Tax 31,000,000 Maximum 1.5% on sales

(no deductions) Yes Transfer from other Governments 3,582,292 HST Interest Revenues 10,589,100 Parking Meters 2,000,000 HRWC Dividend 3,444,900 Used for Sewer system Other Non-Departmental 30,000

Total 502,375,792

16

Taxes – What’s in Scope Taxes – What’s in Scope

Departmental Fees and Revenues Pollution Control Charge 19,302,112 Used for Sewer system Transit Fares 27,796,400 Part Cost recovery

>>> Supplementary Education 21,265,500 Assessment Based Yes Tipping Fees for Solid Waste 11,559,700 from Commercial Sector Rentals and Leasing 6,333,741 Library Grant 3,709,900 from Province Resource Recovery Board 3,636,200 from Province re Diversion Recreation Revenues 3,385,625

>>> Area Rate Revenues 5,250,998 Assessment Based Yes Building Permits and Inspections 3,460,000

>>> Local Improvement Charges (LIC) 1,840,025 Assessment and Frontage Yes False Alarm by-Law 527,739

Other 20,484,305 Secondments, Reserves,

Licenses, Fines, Fees, Other Total 128,552,245

17

Taxes – What’s in Scope Taxes – What’s in Scope

l Focus should be on new/altered revenues to relieve pressure on assessment.

l Assessment Based system l User Fees and Other Revenues

l Focus is on: l Method used to calculate revenues, l Impact of revenues on behavior or economy (if any)

l Eg, Transit fares, false alarms l Eg, Deed transfer tax, business occupancy tax

l Not how funds are spent/not spent. l Eg, Supplementary Education funding. l Eg, Will user fees help manage funds better?

l Focus should be on new/altered revenues to relieve pressure on assessment.

l Assessment Based system l User Fees and Other Revenues

l Focus is on: l Method used to calculate revenues, l Impact of revenues on behavior or economy (if any)

l Eg, Transit fares, false alarms l Eg, Deed transfer tax, business occupancy tax

l Not how funds are spent/not spent. l Eg, Supplementary Education funding. l Eg, Will user fees help manage funds better?

18

Distribution of Tax Bills Tax by Type of Property - 2006

Distribution of Tax Bills Tax by Type of Property - 2006

Distribution of Residential Taxpayers by Size of Tax Bill and Type of Property

Single Unit (Excluding

Condos) Condos Two to Three

Units Apartments Land

Distribution Under $1,000 16,652 1,863 348 26 11,887 18,889

$1,000 to $2,000 50,239 4,284 3,353 257 526 58,133 $2,000 to $3,000 20,157 1,455 2,138 373 104 24,123 $3,000 to $6,000 8,310 562 1,153 549 93 10,574

Over $6,000 909 33 85 818 74 1,845 Total 96,267 8,197 7,078 2,023 12,758 113,565

Average Tax per Dwelling Unit $1,804 $1,640 $1,057 $576 na 1,377 Average Tax per Property $1,804 $1,640 $2,256 $13,674 $430 2,032

19

Properties Percent Properties

Increases Under - 50% 32 0.00% -50% to -25% 89 0.10% -25% to -10% 316 0.30% -10% to -5% 334 0.30% -5% to -2% 867 0.80% -2% to 0% 1,480 1.40% 0% to 2% 8,394 7.90% 2% to 5% 16,701 15.70% 5% to 10% 51,322 48.30% 10% to 25% 24,113 22.70% 25% to 50% 1,956 1.80%

50% plus 680 0.60%

Growth in Residential Assessment (Single Dwelling Unit) - 2006 to 2007

All Districts, All Tax Rates 

Average Increase is 7.9%

20

Distribution of Assessed Values Single Family Homes - 2007

Distribution of Assessed Values Single Family Homes - 2007

2,369

5,217 5,406

9,454

33,423

25,203

17,387

4,835

1,747 995 150 98 0

10,000

20,000

30,000

Under $25,000

$25,000- 50,000

$50,000- 75,000

$75,000- 100,000

$100,000- 150,000

$150,000- 200,000

$200,000- 300,000

$300,000- 400,000

$400,000- 500,000

$500,000- 750,000

$750,000- 1m

$1 million+

2,369

5,217 5,406

9,454

33,423

25,203

17,387

4,835

1,747 995 150 98 0

10,000

20,000

30,000

Under $25,000

$25,000- 50,000

$50,000- 75,000

$75,000- 100,000

$100,000- 150,000

$150,000- 200,000

$200,000- 300,000

$300,000- 400,000

$400,000- 500,000

$500,000- 750,000

$750,000- 1m

$1 million+ 

Dwellings 

Average Value is $163,240

21

HRM Approach to Setting Tax Rate HRM Approach to Setting Tax Rate 

1.7%  2.3%  2.4%  3.0%  2.8%  2.8%  2.4%  2.3% 

2.6%  2.0%  2.6% 

4.0% 2.9% 

4.4%  4.9% 4.0% 

1.3% 

2.4% 

3.2%  4.2% 

5.1% 

1.4% 

1.0% 1.1% 

2000­2001  2001­2002  2002­2003  2003­2004  2004­2005  2005­2006  2006­2007  2007­2008 

New Properties  Cost Pressures  Market Values 

1.7%  2.3%  2.4%  3.0%  2.8%  2.8%  2.4%  2.3% 

2.6%  2.0%  2.6% 

4.0% 2.9% 

4.4%  4.9% 4.0% 

1.3% 

2.4% 

3.2%  4.2% 

5.1% 

1.4% 

1.0% 1.1% 

2000­2001  2001­2002  2002­2003  2003­2004  2004­2005  2005­2006  2006­2007  2007­2008 

New Properties  Cost Pressures  Market Values

6.1% 5.6% 5.3% Average Increase 

for Existing Properties 8.2% 

New Properties (Bring new costs)

8.4% 8.0%

Rate reductions in 2000, 2001, 2002, 2004, 2007. Rates flat in 2003, 2006.

10.4%

12.4% 10.5%

22

Residential Tax Rates Residential Tax Rates

Pre- Amalgamation Current

1995-1996 2006-2007 Change Percent Change

Halifax 1.4849 1.3470 -0.1379 -9.3%

Dartmouth 1.5500 1.3370 -0.2130 -13.7%

Bedford 1.3780 1.2980 -0.0800 -5.8%

Sackville (District 20) 1.6140 1.2980 -0.3160 -19.6% Cole Harbour (District 4) 1.5240 1.2980 -0.2260 -14.8% Eastern Passage (District 5 Urban) 1.5600 1.2980 -0.2620 -16.8%

Plus Area Rates now in General Tax Rate Suburban (General Tax Rate) 0.8950 1.1586 0.2636 29.5%

Plus Area Rates now in General Tax Rate Rural (General Tax Rate) 0.8950 1.1529 0.2579 28.8%

23

Comparing Total Property Tax for a Single Detached House in 2005

- Canadian Cities

Comparing Total Property Tax for a Single Detached House in 2005

- Canadian Cities 

1,6 59 1,725 1,825 

1,907 1,924 2 ,00 2 

2 ,099 2 ,19 6 

2 ,284 2 ,4 06 2 ,470 

2 ,5712 ,573 2 ,685 

2 ,818 2 ,911 2 ,96 8 

3 ,025 3 ,100 

1,778 1,621 1,541 1,578 

1,899 

0 

500 

1,000 

1,500 

2,000 

2,500 

3,000 

3,500 

Source: “Residential Property Taxes and Utility Charges Survey 2005”, City of Edmonton. 

HRM Benchmark against other cities.

24

Average Commercial Taxes Average Commercial Taxes

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007

Average Taxes

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007

Average Taxes

Based on Urban General Tax Rate. Includes Business Occupancy.

Average Business Taxes have increased 33%, CPI has increased 21%.

Commercial Tax Rate nearly 3 times residential plus business pays Business

Occupancy Tax.

25

Design of Business Occupancy Assessment

Design of Business Occupancy Assessment

As a Percentage of Real Property

Banks, Credit Unions, Investment Dealers, Insurance Companies and other Financial Services

All other Sectors Service Stations, Restaurants, Campgrounds, Trailer Parks, Motor Vehicle Dealers

75% 50% 25%

26

Business Occupancy Phase-Out Schedule Business Occupancy Phase-Out Schedule

25% 50% 75% 2005-2006 25% 50% 75% 2006-2007 - 40% 75% 2007-2008 - 30% 75% 2008-2009 - 20% 75% 2009-2010 - 10% 75% 2010-2011 - - 75% 2011-2012 - - 75% 2012-2013 - - 75% 2013-2014 - - -

27

Impact of Business Occupancy Adjustments

Impact of Business Occupancy Adjustments

2005 Revenue 2005 Status Quo Loss Adjusted Change

Commercial 115,833,000 0 123,789,000 7,956,000 BOT - 25% 3,933,900 -3,933,900 0 -3,933,900 BOT - 50% 37,389,500 -7,477,900 31,966,000 -5,423,500 BOT - 75% 3,269,700 0 3,494,000 224,300 Other Taxable 5,011,600 0 5,011,600 0

Sub-Total 165,437,700 -11,411,800 164,260,600 -1,177,100

Federal Payments-in-Lieu 13,761,900 -16,200 14,690,000 928,100 Provincial Payments-in-Lieu 3,376,700 -129,500 3,470,000 93,300

Sub-Total 17,138,600 -145,700 18,160,000 1,021,400

Efficiencies -400,000 100,000 -244,300 155,700 Total 182,176,300 -11,457,500 182,176,300 0

28

Business Occupancy The Long Term Impact

Business Occupancy The Long Term Impact

­20% 

­10% 

0% 

10% 

20% 

30% 

40% 

2005  2007  2009  2011  2013  2015 

Cha

nge in Relative Burde

n (from

 2005) 

BO Exempt  25% BO  50% BO  75% BO

29

Foundations of Current System Foundations of Current System

l “Market Value” Assessments have no consistent link to l Services Available l Ability to Pay l Cost of Services

l In a growing market, this is especially true. l Market segments not growing equally.

l Municipal Government Act offers limited flexibility. Few tools available.

l “Market Value” Assessments have no consistent link to l Services Available l Ability to Pay l Cost of Services

l In a growing market, this is especially true. l Market segments not growing equally.

l Municipal Government Act offers limited flexibility. Few tools available.

30

Market Value and Services Market Value and Services

l Services Available l Market values are affected by a host of factors,

municipal services only one small element. l Eg. Waterfront properties (8% in HRM) are

valued much higher than others (average 15% more). Services often the same. l Eg. Property Improvements increase market value

even though services haven’t changed. l Eg. Assessed values are rising even though services

often don’t follow. l Sewer, Water not on property tax

l Services Available l Market values are affected by a host of factors,

municipal services only one small element. l Eg. Waterfront properties (8% in HRM) are

valued much higher than others (average 15% more). Services often the same. l Eg. Property Improvements increase market value

even though services haven’t changed. l Eg. Assessed values are rising even though services

often don’t follow. l Sewer, Water not on property tax

31

Market Value and Cost Market Value and Cost

l Cost of Services l Property values do not reflect the cost to

deliver services. l Eg, Condos. Costs less to provide municipal

services but value is often higher than other properties.

l Eg, In-Filling. Many services already exist.

l Costs often driven by Density, Distance from Service, Dispersion, Diversity. l See “Pattern Book” for density estimates

l Cost of Services l Property values do not reflect the cost to

deliver services. l Eg, Condos. Costs less to provide municipal

services but value is often higher than other properties.

l Eg, In-Filling. Many services already exist.

l Costs often driven by Density, Distance from Service, Dispersion, Diversity. l See “Pattern Book” for density estimates

32

Market Value and Ability to Pay Market Value and Ability to Pay

l Ability to Pay l Property values do not reflect an

individuals ability to pay l Eg, Values often rise after an individual

has purchased a home. l Eg, Income can decline after an

individual has purchased a home. l Eg, High Income individuals can

choose to put their wealth into other assets. Lower income individuals could put all their wealth into a home.

l Ability to Pay l Property values do not reflect an

individuals ability to pay l Eg, Values often rise after an individual

has purchased a home. l Eg, Income can decline after an

individual has purchased a home. l Eg, High Income individuals can

choose to put their wealth into other assets. Lower income individuals could put all their wealth into a home.

33

15,400 7,000 5,000 High Tax Bill (over $1,600)

10,200 12,800 9,500 Medium Tax Bill ($1,100-

$1,600)

4,100 9,900 15,200 Low Tax Bill (under $1,100)

High Income (over $77,400)

Middle Income Income under $47,000

What is the Philosophy? Tax by total Household Income (2000 Census) What is the Philosophy? Tax by total Household Income (2000 Census) 

Weak Correlation between Income and Assessment!  (R 2 of 27%.)

34

Low Income Relief Low Income Relief

Tax/Income (Prior to Rebate)

Tax/Income (After Rebate)

HRM Average Tax after Rebate

- 5,000 32.1% 16.2% 457 5,000 10,000 14.0% 7.5% 586

10,000 15,000 8.7% 4.8% 633 15,000 20,000 7.5% 4.7% 805 20,000 27,000 5.4% 4.5% 1,063

7.0% 4.7% 837

Average Tax Burden for those on HRM Low Income Rebate 2006

Income Levels

35

Challenges and Risks in Tax Reform

Challenges and Risks in Tax Reform

l Risk in not Reforming l Increased Taxpayer Frustration l Difficulty in establishing tax rate

l Expectation Risk l Everyone’s tax can’t decline, some may increase

l Representative sample of taxpayers l Above/Below Average Taxes l Fast/Slow Growing Assessment l Urban, Suburban, Rural

l Risk in not Reforming l Increased Taxpayer Frustration l Difficulty in establishing tax rate

l Expectation Risk l Everyone’s tax can’t decline, some may increase

l Representative sample of taxpayers l Above/Below Average Taxes l Fast/Slow Growing Assessment l Urban, Suburban, Rural

36

Sidewalks Cost, Availability and Ability to Pay

Sidewalks Cost, Availability and Ability to Pay

l Sidewalk Confusion/Inconsistency: l Construction – Local Improvement Charges (LIC) l Maintenance – Urban Rate l Plowing Local Roads – Area Rate l Plow Arterial Roads – Urban Rate l Curbs – All pay l Ditches – Pollution Control Charges (PCC)

l Smaller communities often have difficulty funding a sidewalk l Should all the features of a road be grouped together?

l Ditch, storm pipes, asphalt, lights, etc…? l Should local areas pay for local costs and all pay for arterials?

l Urban Boundary tied to Sidewalks and Transit

l Sidewalk Confusion/Inconsistency: l Construction – Local Improvement Charges (LIC) l Maintenance – Urban Rate l Plowing Local Roads – Area Rate l Plow Arterial Roads – Urban Rate l Curbs – All pay l Ditches – Pollution Control Charges (PCC)

l Smaller communities often have difficulty funding a sidewalk l Should all the features of a road be grouped together?

l Ditch, storm pipes, asphalt, lights, etc…? l Should local areas pay for local costs and all pay for arterials?

l Urban Boundary tied to Sidewalks and Transit

37

Transit and Area Rates Transit and Area Rates

l Increased Transit Investment will allow HRM to decrease the need for additional Roads

l Will avoid $165m in capital and operating costs over 25 years

l Transit investment may not occur if transit remains area rated.

l Increased Transit Investment will allow HRM to decrease the need for additional Roads

l Will avoid $165m in capital and operating costs over 25 years

l Transit investment may not occur if transit remains area rated.

Major Capital Investments Net Present Value ($000)

0

50

100

150

200

250

Base Case Regional Plan 

Roads  Transit

Major Capital Investments Net Present Value ($000)

0

50

100

150

200

250

Base Case Regional Plan 

Roads  Transit

38

Costing Issues – What Can We Administer?

Costing Issues – What Can We Administer?

l Allocation Issues l ABC systems not in place. l Most expenditures not tracked by area.

l Computer and Software Issues? l New system being developed

l How specific do we make charges? Eg Frontage ? l One Linear Charge?

l Pavement vs chip-sealed vs gravel l Concrete vs asphalt curb l Lights vs no lights l Sidewalks ?

l Flat Charge with Surcharge or Credit? l Corner lots, non-abutters, three-sided lots, flag lots

l Why are we doing it this way and is it worth the effort?

l Allocation Issues l ABC systems not in place. l Most expenditures not tracked by area.

l Computer and Software Issues? l New system being developed

l How specific do we make charges? Eg Frontage ? l One Linear Charge?

l Pavement vs chip-sealed vs gravel l Concrete vs asphalt curb l Lights vs no lights l Sidewalks ?

l Flat Charge with Surcharge or Credit? l Corner lots, non-abutters, three-sided lots, flag lots

l Why are we doing it this way and is it worth the effort?