Management Plan (AMP) and an increase of $5,102,349 or 1.2% requested from cityfunded Agencies, Boards, and Committees (ABCs) which are beyond the control of City Administration. If left unmitigated, the total required tax levy for 2020 would be $430,234,727 reflective of a $14.8 million increase (or 3.6%).

The recommended 1.2% increase in the levy for City Departments would translate to an estimated $34 year over year increase in property taxes for a home valued at $163,000 under a status quo scenario relative to assessment values, the education levy and Council's tax policies. If Council were to also approve the increase related to the AMP and the requested increase for the ABC's, the total impact for the same residential property would be approximately $102 year over year.

It should be noted that the final change in property taxes for individual taxpayers will not be known until City Council has made a decision as it relates to the 2020 tax policies, which is typically completed after the budget has been approved and the levy requirements are known for both the municipal and education purposes. Inevitably, due to the overall change in assessment values, there is a shifting of the tax burden between property classes and as well, amongst individual property owners within each property class. Further, there are many other decisions in consideration of provincial tax policies, which are to be made by Council that can impact the distribution of the tax levy. Additionally, the taxes paid by taxpayers include an Education amount, which is mandated by the Province of Ontario. The 2020 education tax levy and accompanying tax rates have not yet been announced by the Minister. It should be noted that the recommended property tax levy increase as presented in this report is based on a status quo education levy for 2020. Any increases or decreases to the 2020 education tax levy that will ultimately be set by the Province could impact the final amount. Based on recent trends, a small increase is possible.

It is not the intention, through this budget report, to bring forward for consideration any changes in tax burden as a result of assessment changes or tax policy decisions. Those changes will be separately reported to Council at a later date. As such, it is emphasized that the estimated increase in property taxes noted above are subject to change.

In addition to the Municipal Property Tax Levy, the City budgets for three separate and distinct operations under segregated funds – Building Permit Operations, Off-Street Parking Operations and Sewer Surcharge Operations. The recommended budget changes and related financial impact, along with the budget issue detail outlining service impacts and risk, are detailed in the accompanying budget documents. Additional information on the Sewer Surcharge, including additional funding requirements and rate information, will be provided to Council in a separate budget report. Summary information for both Building Permit and Off-Street Parking Operations is provided below for Council's information.

Building Permit Operations

The recommended budget issues for the Building Permit Operations Budget would result in a switch from an overall annual reserve deficit to an overall reserve surplus. The annual draw from the Building Permit Reserve would decrease by $976,796, resulting in an annual reserve contribution of $169,408. The Building permit reserve is currently in a deficit of ($10.4 million) of which almost the full amount is offset by a separate dedicated reserve totalling $10.3 million. Should the positive economic trends being experienced in the City continue, it is possible that building fees revenue would increase, thereby further reducing the deficit.