Property Taxes, User Fees and Related Matters

Reg. 121/07 to make subsections 19 (4.2), (4.3) and (4.4) apply. 2. City Council adopt the 2023 tax ratios shown in Column II for each of the property classes set out below in Column I: Column I Column II (to be adopted) Column III (for information only) Property Class 2023 Recommended Tax Ratios 2023 Ending Ratios (after Levy and CBF Increases) Residential 1.000000 1.000000 Multi-Residential 1.963498 1.899274 New Multi-Residential 1.000000 1.000000 Commercial 2.581835 2.497387 Industrial 2.513009 2.513013 Pipeline 1.923561 1.923565 Farmlands 0.250000 0.250000 Managed Forests 0.250000 0.250000 3. City Council elect to raise the tax rates as follows a. on the restricted property classes: i. on the Commercial Property Classes, by one-half of the percentage tax rate increase on the residential (and new multi-residential, pipelines, farmlands, and managed forests) property class; and b. on the unrestricted property classes: i. On the Multi-Residential Property Classes, by one-half of the percentage tax rate increase on the residential (and new multi-residential, pipelines, farmlands, and managed forests) property class; and ii. On the Industrial Property Classes, by the full tax rate increase on the residential (and new multi-residential, pipelines, farmlands, and managed forests) property class. 4. City Council adopt the following tax rates, subject to the Mayor's proposed budget being adopted as the City's 2023 budget, and in the event City Council amends the Mayor's proposed budget so as to impact the following tax rates and such amendments are not subsequently vetoed by the Mayor, City Council direct the Chief Financial Officer and Treasurer to report to City Council with any necessary adjustments to the tax rates to reflect the final budget amendments for Council's consideration: a. the tax rates set out below in Column IV, which will raise a general local municipal tax levy for 2023 of $5,141,680,582 inclusive of a 5.50 percent residential, new multi-residential, industrial, pipeline, farmlands and managed forest tax rate increase, and a 2.75 percent commercial and multi-residential tax rate increase; and b. the additional tax rates set out below in Column V, which will raise an additional special general tax levy of $58,888,959 dedicated for priority transit and housing capital projects (the "City's Building Fund levy"), in accordance with City Council adopted Recommendation 6 of Executive Committee Report EX22.2 (February 15, 2017) and Item EX11.26 (December 17, 2019): Column I Column II Column III Column IV Column V Column VI Property Class 2023 Tax Rate for General Local Municipal Levy 2023 Additional Tax Rate to Fund Budgetary Levy Increase 2023 Municipal Tax Rate (excluding Charity rebates) (Column II+III) 2023 Additional Tax Rate to Fund City Building 2023 Municipal Tax Rate Inclusive of City Building Fund Rate (excluding Charity rebates) (Column IV+V) Residential 0.479696 percent 0.026383 percent 0.506079 percent 0.007195 percent 0.513274 percent Multi-Residential 0.941882 percent 0.025902 percent 0.967784 percent 0.007064 percent 0.974848 percent New Multi-Residential 0.479696 percent 0.026383 percent 0.506079 percent 0.007195 percent 0.513274 percent Commercial 1.238496 percent 0.034059 percent 1.272555 percent 0.009289 percent 1.281844 percent Industrial 1.205481 percent 0.066301 percent 1.271782 percent 0.018082 percent 1.289864 percent Pipelines 0.922725 percent 0.050750 percent 0.973475 percent 0.013841 percent 0.987316 percent Farmlands 0.119924 percent 0.006596 percent 0.126520 percent 0.001799 percent 0.128319 percent Managed Forests 0.119924 percent 0.006596 percent 0.126520 percent 0.001799 percent 0.128319 percent 5. City Council elect to have the subclasses set out in Column II for each of the property classes set out in Column I apply for the 2023 taxation year, and to apply the respective tax rate reductions set out in Column III below: Column I Column II Column III Property Class Tax Subclass Applicable Tax Rate Reduction Commercial Creative Facilities Enterprise subclass (Creative Co-location Facilities Subclass) 50 percent of Commercial rate Small Business subclass 15 percent of Commercial rate Excess Land 30 percent of Commercial rate Vacant Land 30 percent of Commercial rate Farmland Awaiting Development (First subclass) 60 percent of Residential/Farm rate Farmland Awaiting Development (Second subclass) 30 percent of Commercial rate Industrial Creative Facilities Enterprise subclass (Creative Co-location Facilities Subclass) 50 percent of Industrial rate Excess Land 35 percent of Industrial rate Vacant Land 35 percent of Industrial rate Farmland Awaiting Development (First subclass) 60 percent of Residential/Farm rate Farmland Awaiting Development (Second subclass) 35 percent of Industrial rate Residential Farmland Awaiting Development (First subclass) 60 percent of Residential/Farm rate Farmland Awaiting Development (Second subclass) 0 percent of Residential/Farm rate Multi-residential Farmland Awaiting Development (First subclass) 60 percent of Residential/Farm rate Farmland Awaiting Development (Second subclass) 0 percent of Residential/Farm rate 6. City Council determine that the 2023 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of $9,882,974 to fund the mandatory 2023 property tax rebates to registered charities in the commercial and industrial property classes, which provision is to be funded, for a net impact on the 2023 operating budget of zero, by the following: a. an additional tax rate of 0.007973 percent be levied as part of the general local municipal levy on the commercial class to raise a further additional local municipal tax levy of $9,796,753 to fund the total estimated rebates and any prior year deficiencies to registered charities for properties in the commercial class in 2023. b. an additional tax rate of 0.001062 percent be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $86,220 to fund the total estimated rebates and any prior year deficiencies to registered charities for properties in the industrial class in 2023. 7. City Council adopt the following property tax capping polices for the 2023 taxation year: a. limit tax increases for the commercial, industrial, and multi-residential property classes by capping taxes at 10 percent of the preceding year's annualized taxes, by opting to have subsection 292(1), paragraph 1, of the City of Toronto Act, 2006, apply for the 2023 taxation year; b. continue to provide that the 10 percent cap on tax increases apply to any property within the commercial, industrial and multi-residential classes, regardless of whether the property had reached full Current Value Assessment taxation levels in a prior year, subject to the threshold adopted in Part c. below; and c. for the purposes of subsection 292(1), paragraphs 3 and 4 of the City of Toronto Act, 2006, adopt a threshold limit of $500 to determine the taxes for municipal and school purposes, such that properties that are within $500 (plus or minus) of their full Current Value Assessment level of taxation in the current year are taxed at full Current Value Assessment taxation levels for the year, and are therefore excluded from capping/claw-back provisions for that year. 8. City Council direct the Chief Financial Officer and Treasurer to report to Executive Committee, or directly to City Council or a special meeting of City Council, if necessary, on the 2023 tax rates for school purposes, and the 2023 percentage of the tax decreases required to recover the revenues foregone as a result of the cap limit on properties in the commercial, industrial and multi-residential property classes (the 2023 'clawback' rates). 9. City Council determine that: a. the instalment dates for the 2023 final tax bills be set as follows: i. the regular instalment dates be July 4, August 1, and September 1 of 2023; ii. for taxpayers who are enrolled in the monthly pre-authorized property tax payment program, the instalment dates be July 17, August 15, September 15, October 16, November 15 and December 15 of 2023; and iii. for taxpayers who are enrolled in the two installment program, the final instalment date be July 4, 2023. b. the collection of taxes for 2023, other than those levied under the interim levy By-law 6-2023, be authorized. 10. City Council amend City of Toronto Municipal Code Chapter 767-5.4, to update the Tax Cancellation program eligibility for 2023 to increase the household income threshold for eligible persons to $49,361, and the assessed value for eligible property to $975,000. 11. City Council express its support for generating additional revenue through 2035 to fund the tax-supported capital plan through a 1.5 percent annual increase to the City Building Fund Levy for priority transit and housing projects, and request the Mayor to include such revenue in their future proposed annual budgets. MUNICIPAL ACCOMODATION TAX 12. City Council approve an increase to the Municipal Accommodation Tax from 4 percent to 6 percent effective May 1, 2023, with the corresponding total revenue of $41.6 million net included in the 2023 Budget. USER FEES 13. City Council: a. approve the 2023 new user fees, market rate user fee changes, rationalized user fees, discontinuation of fees and other fee changes above the inflationary adjusted rate for all programs identified in Appendix B to the report (January 31, 2023) from the Chief Financial Officer and Treasurer, and City Council amend Toronto Municipal Code Chapter 441, Fees and Charges, to reflect these user fee changes, as amended by Parts 14 and 15 below; b. direct that the interim 2023 water and wastewater consumption rates and service fees adopted in 2023.EX1.3 are the final rates and fees for 2023; and c. direct that the interim 2023 solid waste management service rates and fees adopted in 2023.EX1.2 are the final rates and fees for 2023. 14. City Council increase the 2023 recommended user fees associated with residential permit parking, with a $2.00 increase effective April 1st above 2023 recommended fees across the following residential permit parking fees: a. to provide on street parking for 1st vehicle to residents who have no place to park on site - 1 month permit (Priority One - per space Jan - May) from $18.81 to $20.81 (Reference # TP064); b. to provide on street parking for 1st vehicle to residents who have no place to park on site - 1 month permit (Priority One - per space Jun - Dec) from $19.34 to $21.34 (Reference # TP064.1); c. to provide on street parking for 2nd and subsequent vehicle to residents with no place to park on site - 1 month permit (Priority Two - per space Jan - May) from $58.38 to $60.38 (Reference # TP067); d. to provide on street parking for 2nd and subsequent vehicle to residents with no place to park on site - 1 month permit (Priority Two - per space Jun - Dec) from $59.96 to $61.96 (Reference # TP067.1); e. to provide on street parking to residents who have access to on-site parking - 1 month permit (Priority Three - per space Jan - May) from $82.12 to $84.12 (Reference # TP070); f. to provide on street parking to residents who have access to on-site parking - 1 month permit (Priority Three - per space Jun - Dec) from $84.29 to $86.29 (Reference # TP070.1); g. to provide parking permits for temporary visitors - 7 days from $37.58 to $39.58 (Reference # TP072); h. temporary 24 Hour on-street parking permit from $16.26 to $18.26 (Reference # TP072.1); and i. temporary 48 Hour On-Street Parking Permit from $24.39 to $26.39 (Reference # TP072.2). 15. City Council amend Toronto Municipal Code Chapter 441, Fees and Charges, Appendix C - Schedule 12, Municipal Licensing and Standards, by increasing the user fee [Ref Number: 451] Private properties - Registration fee for apartment building by $3.44, as follows: Ref No. Service Fee Description Category Fee Basis 2023 Proposed Fee Proposed increase Annual Adjustment 451 Private properties Registration fee for apartment building Full Cost Recovery Per unit $15.40 $3.44 Yes INTERGOVERMENTAL FUNDING 16. City Council request the Provincial and Federal governments to provide funding support to the City of Toronto to offset the financial impacts of COVID-19 through recovery, which are estimated to be $932.8 million in 2023, with forecasted impacts expected to continue into 2024 and 2025. 17. City Council continue to advocate to the Federal and Provincial governments for ongoing funding support of an estimated $96.5 million for Refugee/Asylum Claimant and $48.0 million Supportive Housing programs in 2023, with forecasted impacts expected to continue into 2024 and 2025. 18. City Council authorize the City Manager and/or any other relevant City Official, in consultation with the Chief Financial Officer and Treasurer, to apply for and receive federal and provincial intergovernmental funding, and negotiate, enter into and execute any agreements required in respect of receiving such funding, including any amendments and extensions thereto, with the Government of Canada, the Government of Ontario, their respective agencies/partners, or other funding partners. 19. City Council authorize the Executive Director, Social Development Finance and Administration, to extend the existing agreement with the Provincial Government to March 31, 2025, and to receive $0.582 million (2023-2025) to support the implementation of Justice Centres in the Downtown East and North West areas of Toronto. RESERVES/RESERVE FUNDS 20. City Council establish a discretionary reserve fund called the 'Vacant Home Tax Reserve Fund' in Appendix B, Schedule 7, Corporate Discretionary Reserve Funds, of the City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds, the purpose of which is to receive net proceeds from the Vacant Home Tax Program to support affordable housing initiatives, with criteria set out in Appendix D to the report (January 31, 2023) from the Chief Financial Officer and Treasurer. 21. City Council establish a discretionary reserve fund called the 'Debt Servicing Reserve Fund' in Appendix B, Schedule 7, Corporate Discretionary Reserve Funds, of the City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds, the purpose of which is to mitigate effects of the rising costs of capital and capital financing, and reduce the volatility of the City's annual debt service costs, with criteria set out in Appendix E to the report (January 31, 2023) from the Chief Financial Officer and Treasurer. 22. City Council direct that the balance of the 'Debt Servicing Stabilization Reserve' be transferred to the 'Debt Servicing Reserve Fund', and that it be closed and deleted from Appendix A, Schedule 3 in Toronto Municipal Code Chapter 227, Reserves and Reserve Funds. 23. City Council establish a discretionary reserve fund called the 'Capital From Current Reserve Fund' in Appendix B, Schedule 7, Corporate Discretionary Reserve Funds, of the City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds, the purpose of which is to provide a financing mechanism on a pay as you go basis for ongoing capital needs of assets that have a shorter lifecycle and reduce reliance on debt issuance with criteria set out in Appendix F to the report (January 31, 2023) from the Chief Financial Officer and Treasurer. 24. City Council approve the establishment of an obligatory reserve fund called the 'Canada Community-Building Fund Reserve Fund' in Appendix C, Schedule 15, Third Party Agreements Obligatory Reserve Funds, of the City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds, the purpose of which is to fund priority infrastructure projects eligible under the Canada Community Building Fund Program including the acquisition, planning, design, construction, or renovation of a tangible capital asset, with criteria set out in Appendix G to the report (January 31, 2023) from the Chief Financial Officer and Treasurer. 25. City Council direct that the balance of the Development Charges Reserve Fund - Transit (Scarborough Subway Extension) be transferred to the Development Charges Reserve Fund - Transit, and that it be closed and deleted from Appendix C, Schedule 11 in Toronto Municipal Code Chapter 227, Reserves and Reserve Funds. 26. City Council authorize the City Solicitor to amend the existing Section 45(9.1) agreement with University Equities Inc. and/or Triogreen East GP Inc. dated April 16, 2019, and registered on title in order to reflect the updated City contribution amount of $198,270 gross, and City Council authorize the Director, Community Planning, Toronto and East York District to execute that amending agreement on behalf of the City. 27. Further to City Council increasing the 2023 Operating Budget for Non-Program by $150,000.00 gross, $0 net, for the purpose of providing one-time capital funding to the Toronto District School Board for playground improvements at Winona/McMurrich Senior and Junior Public School, City Council authorize the Director, Strategic Initiatives, Policy and Analysis, City Planning to execute, on behalf of the City, a Community Access Agreement with the Toronto District School Board governing the use of the funds, the financial reporting requirements and addressing community access to the playground facilities at Winona/McMurrich Senior and Junior Public School, for a term of 20 years, to be prepared in consultation with, and on terms and conditions acceptable to, the General Manager, Parks, Forestry and Recreation and the Ward Councillor, and in a form satisfactory to the City Solicitor, and direct that if a mutually acceptable Community Access Agreement cannot be agreed upon, that the funds will not be transferred to the Toronto District School Board and shall be made available for other community facilities in the local community. 28. City Council authorize the Chief Financial Officer and Treasurer to make all budgeted contributions and withdrawals to and from reserves for all City Programs and Agencies, as reflected in the 2023 Budget, including $251.784 million contribution to the City Building Reserve Fund from the dedicated City Building levy for priority transit and housing capital projects, and $40.699 million to the Scarborough Transit Reserve Fund from the dedicated special property tax levy in support of commitments to transit investments. OTHER 29. City Council approve the continuation of the existing Solid Waste Rebates for Low Income Seniors, Disabled and Multi-Residential customers as following: Bin Size Rebate** For Single Family Residential and Residential Units Above Commercial Small $0.00 Medium $0.00 Large $0.00 Extra Large $0.00 Bag-Only $0.00 For Low Income Seniors, Disabled and Multi-Residential Customers Small $227.01 Medium $163.76 Large $72.41 Extra-Large $0.00 Bag-Only $215.01 Multi-Residential* $185.00 *Multi-residential is per dwelling unit and includes Curbside Property and Front-End Collections **Please note the rebates for Single Family Residential and Residential Units Above Commercial (RUAC) Weekly and Bi-Weekly had been approved to be reduced to $0 in prior budget years. This applied to all bin sizes including Small, Medium, Large, Extra Large and Bag Only customers. 30. City Council amend City of Toronto Municipal Code Chapter 767, Taxation, Property Tax, to amend the definition of an eligible person to specify a household income of $55,000 for the 2023 taxation year, and to similarly amend Chapter 844, Waste Collection, Residential Properties, and Chapter 849, Water and Sewage Services and Utility Bill to amend the definition of an eligible person to specify a household income of $55,000 for the solid waste rebate and the water rebate for eligible persons in respect of the 2023 calendar year. 31. City Council approve conditionally all sub-projects with third-party financing, subject to the receipt of such financing in 2023, if such funding is not forthcoming, their priority and funding will be reassessed by City Council relative to other City-financed priorities and needs. 32. City Council authorize the designation of areas as "construction hubs" and amend City of Toronto Municipal Code Chapter 743, Streets and Sidewalks, Use Of, to include a definition of construction hub and to create a new Appendix C: Construction Hubs generally as set out in Appendix H to the report (January 31, 2023) from the Chief Financial Officer and Treasurer, and City Council authorize the City Solicitor to make any necessary clarifications, refinements, minor modifications, technical amendments, or by-law amendments as may be identified by the City Solicitor or General Manager, Transportation Services, in order to give effect to City Council's decision. 33. City Council direct the Chief Financial Officer and Treasurer, in consultation with the President, Toronto Parking Authority, to report to the Executive Committee on an updated Income Sharing Renewal Agreement no later than December 31, 2023. 34. City Council authorize the General Manager, Solid Waste Management Services, to enter into the Community Benefits Agreement with the Munsee-Delaware Nation with respect to the City's Green Lane Landfill that is being negotiated pursuant to the City Council-adopted Reconciliation Action Plan, in line with the existing First Nations Community Benefits Agreements and based on terms and conditions acceptable to the City Manager, the General Manager, Solid Waste Management Services, and is in a form satisfactory to the City Solicitor. 35. City Council direct the Chief Financial Officer and Treasurer to include the following in each variance report to City Council: a. the status of all outstanding funding requests of the Federal and Provincial Governments; and b. any contributions to and/or draws from the Property Tax Stabilization Reserve. 36. City Council request the Chief Financial Officer and Treasurer to conduct a review of remaining State of Good Repair challenges and return with a strategy and opportunities to address for the 2024 budget process, with a focus on the areas projected to see the greatest growth (Transit, Transportation, Recreation and City building). 37. City Council authorize the appropriate officials to take the necessary actions to give effect to City Council's decision, and City Council authorize the City Solicitor to introduce the necessary bills in City Council, including a bill to give effect to the final tax rates and final user fees at the first Council meeting following the completion of the budget process.