Risk Analysis:

The administration of property taxes is regulated through legislation and regulations found within the Ontario Municipal Act, 2001. While there is some municipal discretion and decision making authority, there is little latitude as it relates to billing and payments.

There is low risk attributable to the issuance of interim property tax bills. Issuance of interim tax bills allows the municipality to raise the necessary funds to continue operations until such time as final budgets have been approved and actual taxes for the year can be determined. Any adjustments required as a result of the final budget requirement and final tax rates will be made later in the year with the final tax billings. Failure to issue interim tax bills could result in a shortfall of the working capital required to provide municipal services necessitating the need for temporary borrowings.

Administration will work with the consulting firm of Municipal Tax Equity (MTE) Ltd. as it relates to the Tax Capping Adjustment to ensure that each individual tax adjustment is reflective of the correct value. MTE has been assisting Administration in this and other tax policy matters since 2000 to mitigate any risk related to legislative compliance matters.

Climate Change Risks

Climate Change Mitigation: N/A

Climate Change Adaptation: N/A

Financial Matters:

The tax revenue generated from the 2021 interim tax levy will be approximately $214,132,000 inclusive of the education component and will provide the necessary working capital to support operations until such time as the final tax rates have been set and final tax bills issued.

Preliminary work has already commenced with regards to the preparation of the 2021 Interim tax bills so as it meet legislative timing for receipt of the bills by property owners prior to the first due date. Administration is anticipating that all bills will be mailed the week of January 18, 2021

Consultations:

N/A