CERTIFICATE OF AMENDMENTS

Certified to be a true copy of amendments to:

Report No. 12 of The Strategic Policies and Priorities Committee, and

Report No. 13 of The Strategic Policies and Priorities Committee,

and Notices of Motions, as adopted by the Council of the City of Toronto at its Special Meeting held on July 21 and 23, 1998.

REPORT NO. 12 OF THE STRATEGIC POLICIES

AND PRIORITIES COMMITTEE

Clause No. 1 - "Provincial Property Tax System".

The foregoing Clause was received.

REPORT NO. 13 OF THE STRATEGIC POLICIES

AND PRIORITIES COMMITTEE

Clause No. 1 - "Residential Property Class - Phase-In Policy".

Council adopted the following recommendations:

"It is recommended that:

(1) the report (undated) from Mayor Lastman, entitled 'Residential Property Class - A Compromise Proposal', embodying the following recommendation, be adopted:

'It is recommended that, in order to allow individuals time to adjust their financial affairs, the increases and decreases related to property tax reform with respect to residential property tax reform be phased-in over a five-year period in combination with an annual minimum payment of $300.00 for tax increases and an annual minimum payment of $200.00 for tax decreases.';

(2) an arm's length municipal office be set up immediately to help the City's taxpayers to appeal their property tax assessment;

(3) the Assessment and Tax Policy Task Force be instructed to work towards a recommendation that a portion of one's property taxes be based on income;

(4) WHEREAS, the stated purpose of any proposed phase-in program is to help long-term home owners 'get used to the idea of paying more' and to prevent seniors, disabled and low or fixed-income residents from losing their homes because of inability to pay their new increased tax rates;

NOW THEREFORE BE IT RESOLVED THAT the City of Toronto Council petition the Province of Ontario to pass legislation allowing that, upon the change of ownership on or after January 1, 1999, of any residential property, any tax increase or decrease become immediately effective at its full new rate for the new owner, and excluding those changes where title passes through the death of one or more partners in a home where the title is held by a joint-tenants-in-common agreement held prior to July 1, 1998; and excluding those joint-tenants-in-common agreements where title passes from parent to child, unless the child has already reached the age of 55;

(5) the Province of Ontario be requested to provide legislation to allow the phase-in for decreases in effect be for three years and the phase-in for increases be for five years with the thresholds recommended in the report from Mayor Lastman; and further that the Province be requested to provide a one-time grant in the amount of the differential between the phase-in of the increase and the decrease;

(6) the Province of Ontario be requested, for those instances where building permits are issued for changes to existing residential buildings, to implement the same procedure that is followed for non-residential buildings which is that a partial reassessment be carried out when the Province is informed of the value of the building permit, and a full assessment be carried out when the building permit is closed;

(7) Council petition the Province of Ontario for additional tax tools for setting residential property tax rates, such tools to include setting graduated tax rates such as the ones considered by the Chief Financial Officer and Treasurer for commercial and industrial taxes;

(8) Mayor Lastman be requested to write to the Minister of Finance again requesting:

(a) information respecting the Current Value Assessment (CVA) system which was originally requested by City Council at its meeting held on March 4, 5 and 6, 1998; and

(b) information previously requested in the communication dated April 6, 1998, from the Chief Financial Officer and Treasurer, addressed to the Assistant Deputy Minister, Office of Budget and Taxation, respecting necessary assessment information to determine assessments based on current value in current use;

(9) Council record its appreciation for the diligence and professional conduct of all City staff involved in the tax policies issues, in particular, staff of Finance, Economic Development, Legal, Housing, Information Technology, Clerk's and Chief Administrative Officer's Office; and

(10) the report dated July 23, 1998, from the Chief Financial Officer and Treasurer embodying the following recommendations, be adopted:

"It is recommended that:

(1) Council authorize the levy and collection of taxes for the 1998 taxation year, the imposition of a penalty charge for non-payment of 1998 taxes, the provision of interest to be added to tax arrears and to establish tax ratios for the year 1998;

(2) Council approve the levy of a special charge for 1998 for the following Business Improvement Areas and to provide for its collection: Bloor by the Park; Bloor Court Village; Bloor West Village; Bloor-Bathurst-Madison; Bloor-Yorkville; Bloordale Village; Corso Italia; Danforth by the Valley; Eglinton Way Village; Forest Hill Village; Gerrard India Bazaar; Greektown on the Danforth; Harbord Street; Islington Village; Junction Gardens; Kennedy Road; Kingsway; Lakeshore; Little Italy; Long Branch; Mimico Village; Old Cabbagetown; Parkdale Village; Queen/Broadview Village; Roncesvalles Village; St. Lawrence Neighbourhood; Upper Village and Weston;

(3) authority be granted for the introduction of the necessary bills in Council to levy taxes for the year 1998 and to provide for the collection of taxes for 1998 other than those levied under By-law No. 10-1998, to impose a penalty charge for non-payment of taxes, to provide for interest to be added to tax arrears, to establish tax ratios for the 1998 taxation year and to levy a special charge for 1998 for certain Business Improvement Areas and provide for its collection, in the form or substantially in the form of the draft by-laws attached thereto; and

(4) subject to Council adopting a residential property class phase-in program with or without a threshold; and the capping of taxes at 2.5 percent per year for the years 1998 - 2000 for the multi-residential, commercial and industrial property classes, that leave be granted for the introduction of the necessary bills in Council to give effect thereto in the form or substantially in the form of the draft by-laws attached hereto."

Clause No. 2 - "Multi-Residential Property Class - Tax Policy Options".

The foregoing Clause was amended by:

(1) striking out Recommendation No. (2) embodied in the transmittal letter dated July 12, 1998, from the Assessment and Tax Policy Task Force, and inserting in lieu thereof the following new Recommendation No. (2):

"(2) the Chief Financial Officer and Treasurer be requested to report on other ways to encourage construction of rental buildings;"; and

(2) deleting from Recommendation No. (3) embodied in the transmittal letter dated July 12, 1998, from the Assessment and Tax Policy Task Force, the words "be requested to", and inserting prior to the words "the Province", the words "Council demand that", so that such recommendation shall now read as follows:

"(3) Council demand that the Province amend the legislation to provide that the landlords be required to pass on any decreases in taxation to tenants, with detailed deadlines for passing on any decreases and providing for mandatory fines or penalties should the deadlines not be met;".

Clause No. 3 - "Property Tax Relief for Low-Income Seniors and Disabled Persons".

The foregoing Clause was amended:

(1) by amending the recommendations embodied in the transmittal letter dated July 12, 1998, from the Assessment and Tax Policy Task Force as follows:

(a) by adding the words "or a person by reason of age or infirmity who is in receipt of a pension" at the end of Recommendation No. (2)(i), so that Recommendation No. (2) shall now read as follows:

"(2) the following eligibility criteria for low-income seniors be adopted:

To be eligible as a low-income senior, a person:

(i) must be 65 years of age or older, or in the case of a widowed person receiving the Spouse's Allowance, between the age of 60 and 64, or a person by reason of age or infirmity who is in receipt of a pension;

(ii) must have owned and occupied the residential property for one year; and

(iii) must be receiving the Guaranteed Income Supplement (GIS) under the Old Age Security Act, and in the case of widowed person between the age of 60 and 64, receiving a Spouse's Allowance under the Old Age Security Act;";

(b) by adding to Recommendation No. (2) the following:

"and further, that the Chief Financial Officer and Treasurer and the Commissioner of Community and Neighbourhood Services strike a working group that includes staff and representatives from community senior citizens' organizations to develop criteria for an enhanced residential property tax relief program, other than tax deferrals in respect of all or part of assessment-related increases for low-income seniors and report back to the Assessment and Tax Policy Task Force by September, 1998"; and

(c) by adding to Recommendation No. (3)(b) the words "other than tax deferrals" after the words "property tax relief program", so that such recommendation shall now read as follows:

"(3) (b) the Chief Financial Officer and Treasurer and the Commissioner of Community and Neighbourhood Services strike a working group that includes staff and representatives from community organizations including ARCH to develop criteria for an enhanced residential property tax relief program, other than tax deferrals, in respect of all or part of assessment-related tax increases for low-income disabled persons and report back to the Task Force by September, 1998;";

(2) to provide that:

(i) for assessment-related increases, the amount eligible for deferral shall be dependent on income as follows:

Amount of assessment-related

Combined House Income increase eligible for deferral (percentage)

GIS approx. $20,000.00

or less 100%

more than $20,000.00 and less

than or equal to $25,000.00 75%

more than $25,000.00 and less

than or equal to $30,000.00 50%

more than $30,000.00 and less

than or equal to $35,000.00 25%

(ii) all seniors, as defined by Council, be eligible for relief from an assessment related tax increase as follows:

(a) the first group to be eligible as per the low-income criteria being established, with the deferral being at a zero percent interest rate; and

(b) the second group to include any other senior property owner, with the deferral being at an interest rate equal to the rate being paid by the City (thus being at no expense to the City);

and the Province of Ontario be requested to enact enabling legislation in this regard; and

(3) by adding thereto the following:

"It is further recommended that:

(a) an amount of $250,000.00 be provided in the 1998 Operating Budget to fund the first year of the tax deferral program for low-income seniors and low-income disabled persons, and that such funds be provided from the Corporate Contingency Account;

(b) the Province of Ontario be requested to extend the tax deferral program to allow municipalities the option to provide tax deferrals to all low-income residents who own residential property; and

(c) the Chief Financial Officer and Treasurer be requested to submit a report to the appropriate Committee on the details of the mechanism for establishing the tax deferral program."

Clause No. 4 - "Commercial and Industrial Property - Tax Policy Options".

The foregoing Clause was amended by adding thereto the following:

"It is further recommended that Council request the Province of Ontario to:

(1) reassess all commercial and industrial properties solely on the basis of 'value in current use'; and

(2) provide, to City Council, the results of the assessment using 1998 values, in order that the issues of different classes and other policy issues may be evaluated well prior to the return of an assessment based on 1999 values."

Clause No. 5 - "Property Tax Rebates for Charitable and Similar Organizations".

The foregoing Clause was amended by adding thereto the following:

"It is further recommended that the Chief Financial Officer and Treasurer be requested to:

(1) submit a report to the Assessment and Tax Policy Task Force in October, 1998, on any hardship cases arising from the 2.5 percent cap for charitable and non-profit organizations;

(2) submit a report to Council, through the Strategic Policies and Priorities Committee in September, 1998, on a fair tax policy for ethno-cultural centres; and

(3) prepare for Council a communication package summarizing the details of the tax plan."

Clause No. 6 - "Tax Shifts - Effect of Changes to Transition Ratios".

The foregoing Clause was amended by:

(1) amending the recommendations embodied in the transmittal letter dated July 13, 1998, from the Assessment and Tax Policy Task Force, as follows:

(a) by striking out Recommendation No. (2), and inserting in lieu thereof the following:

"(2) Council not consider any deliberate tax shifts between classes of property in 1998, 1999 and 2000."; and

(b) by striking out the following Recommendation No. 3(i):

"(3) the Chief Financial Officer and Treasurer be requested to report to the Strategic Policies and Priorities Committee:

(i) once the 905 municipalities have set their final tax rates with an analysis of the difference in tax burdens with Toronto and that the Strategic Policies and Priorities Committee then recommend whether or not Council should consider a long-term plan to possibly reallocate property tax class burdens;";

so that the recommendations of the Assessment and Tax Policy Task Force shall now read as follows:

"It is recommended that:

(1) the report (June 29, 1998) from the Chief Financial Officer and Treasurer respecting tax shifts, be received;

(2) Council not consider any deliberate tax shifts between classes of property in 1998, 1999 and 2000;

(3) the Chief Financial Officer and Treasurer be requested to report to the Strategic Policies and Priorities Committee on the advantages and disadvantages of different tax rates for the residential, multi-residential, commercial and industrial tax groups; and

(4) Council reiterate its request to the Province to develop a multi-year strategy to reduce the burden on property taxes caused by education and social service costs."; and

(2) adding thereto the following:

"It is further recommended that:

'WHEREAS the Province of Ontario has established "bands of fairness" whereby it deems that the commercial/industrial tax rate should not be ten percent greater than the residential tax rate; and

WHEREAS the "principle of fairness" should differentiate between properties that are income-producing versus those that are not;

NOW THEREFORE BE IT RESOLVED THAT City Council petition the Province of Ontario to review its "bands of fairness" with a view to allowing more latitude in setting the tax rate for commercial/industrial properties.' "

NOTICES OF MOTION APPEARING UNDER ITEM E

(1) Moved by: Councillor Walker

Seconded by: Councillor Mihevc

"WHEREAS the Association of Municipal Clerks and Treasurers of Ontario (AMCTO) has written the Honourable Ernie Eves, M.P.P., Deputy Premier and Minister of Finance to express its disapproval about placing serious time limitations for Committee hearings on Bill 16, and to express its concern about several aspects of Bill 16, namely the inability of the AMCTO to present its concerns to the Committee in order to aid the Provincial government in refining this integral piece of municipal legislation;

WHEREAS there is little opportunity for municipal councils to comment and recommend changes to the regulations, resulting in a Bill which serves only to perpetuate a bad system that the Provincial government is bent on eliminating;

WHEREAS this Bill is complicated, cumbersome, confusing and too often, badly drafted to the point where AMCTO has indicated that Bill 16, with its many regulatory controls and directions, with its excessive administrative discretion, creates an administrative and political nightmare for municipalities, leaving administrators and municipal councils without certainty;

WHEREAS any delay in establishing and publishing regulations jeopardizes the financial stability of municipal governments;

WHEREAS Ontario municipalities will be unable to implement this complex taxation system without a substantial commitment of time, effort, resources and tax dollars;

NOW THEREFORE BE IT RESOLVED THAT the Provincial government, at best, commit to a freeze of the implementation of Current Value Assessment for the minimum of a one year period; or alternatively, the Provincial government take the necessary action to establish a cap on any increases which will result from the implementation of Current Value Assessment so that the issues which are still needed to be resolved can be addressed in a more timely manner and resolved."

Disposition: The foregoing Motion was ruled out of order.

(2) Moved by: Councillor Bossons

Seconded by: Councillor Miller

"WHEREAS municipalities charge 1.25 per cent monthly (15 per cent annually) interest rate on unpaid property tax bills; and

WHEREAS many taxpayers have complained about this high interest rate; and

WHEREAS if CVA-related tax increases begin to apply in 1998, many taxpayers will have difficulties in coming up with the extra tax, at least in the beginning; and

WHEREAS many must default on taxes while they begin planning for the sale of their homes;

NOW THEREFORE BE IT RESOLVED THAT for 1998, 1999 and 2000, the City of Toronto adjust this interest rate downward."

Disposition: The foregoing Motion was referred to the Chief Financial Officer and Treasurer.

(3) Moved by: Councillor Lindsay Luby

Seconded by: Councillor Giansante

"WHEREAS Council at its meeting held on May 13 and 14, 1998, approved the budget for the Village of Islington Business Improvement Area; and

WHEREAS in previous taxation years maximum and minimum charges were levied on businesses in the Village of Islington Business Improvement Area; and

WHEREAS, if maximum and minimum charges are levied in this taxation year, billing will be further delayed because notice of passage of a maximum and minimum charge by-law must be given and the Business Improvement Area will not be able to continue with its planned program of activities; and

WHEREAS the Board of Management of the Village of Islington Business Improvement Area by letter dated July 17, 1998, has advised that it has met and approved proceeding with levying their BIA based on the standard procedures used for the majority of BIAs in 1998 and requested that it be levied and billed in 1998 in the same manner as are the majority of other Business Improvement Areas in the City;

NOW THEREFORE BE IT RESOLVED THAT Council approve billing for the Village of Islington Business Improvement Area for the 1998 taxation year in the same manner as the majority of other Business Improvement Areas in the City and request that the Commissioner of Economic Development work towards a solution for future billing."

Disposition: The foregoing Motion was adopted, without amendment.

Toronto, Ontario City Clerk

July 27 , 1998