REQUEST FOR DECISION

File # 1880
1880--01
Report To: Mayor and Council
From: Director of Finance
Presenter: Shirley Collington
Subject: Administration Report No. 0106/21
2021 Property Tax Report
Meeting: Regular Council
Meeting Date: 26 Jul 2021

RECOMMENDATION:

"THAT, Administration Report No. 0106/21 - 2021 Property Tax Report be

received for information."
CAO'S COMMENTS:

The level of tax collection has recovered to normal levels observed prior to the pandemic.

ALTERNATIVE RECOMMENDATION:

None

KEY ISSUES(S)/ CONCEPTS DEFINED:

The Finance department would like to provide Council with an update on the amount of tax
revenue collected by the July 2 deadline for 2021.

RELEVANT POLICY:
Community Charter
Local Government Act

IMPLICATIONS OF RECOMMENDATION

COMPLIANCE WITH STRATEGIC GOALS:

Goal No. 1 - Enhance community economic development to provide

opportunities and sustainability for Fort St. John.

Goal No. 3 - Build and manage public assets and human resources that
support the current and future needs of the community.

COMPLIANCE WITH STRATEGIC PRIORITIES:

None

GENERAL:

In May of 2021, 9,447 tax notices (9,190 for 2020) were printed and mailed
out. A tax levy of $48,168,921.42 was calculated for the property taxes
receivable ($43,940,929 for 2020). As part of taxes receivable, the City of Fort
St John's general tax portion for tax revenue is $32,652,644.00. At the end of
the July 2nd due date, the City had collected 86.15% of the total receivable
billed for 2021, as compared to 62.48% collected in 2020 but property owners
essentially caught up with their 2020 tax obligations by September 30th of
that year. the 2021 percentage is essentially back
back--to
to--normal compared to pre
pre--
pandemic years.

A major change for the 2021 tax season was the Province of BC taking
Homeowner grant applications instead of the City taking them. Staff did
notice slightly less foot traffic coming in because of this change, however they
were still quite busy with explaining the new process to the residents and in
some cases, walking them through the process either over the phone or at the
counter. Although the change was confusing for some, it seemed to be well
accepted by most and we received a lot of positive feedback on it.
ORGANIZATIONAL:

None

FINANCIAL:

There is no negative financial impact at this time. Current taxes outstanding

were assessed the 10% penalty as of July 3rd and then commencing on
January 1st, 2022, those accounts will be charged daily interest on any
arrears balances. This is a requirement under the Local Government Act.

The additional revenue received from the penalties charged will offset the
additional administrative burden to collect these taxes.

FOLLOW UP ACTION:

In order to prevent properties from being auctioned off in the City's annual
tax sale, Finance staff will follow its usual communication procedures by
issuing letters and working with residents and businesses to establish full
and/or flexible payment arrangements.

Because of the change in the homeowner grant process, these letters will also
benefit us and the residents to address any errors or omissions that may
have occurred during the new process.

COMMUNITY CONSULTATION:

Property owners receive their property tax notice in May, and there is
additional advertising done to remind the public of any payment deadlines.

COMMUNICATION:

N/A

DEPARTMENTS CONSULTED ON THIS REPORT:

None
Attachments:

RESPECTFULLY SUBMITTED:
Shirley Collington, Director of Finance
16 Jul 2021