1995 RESIDENTIAL PROPERTY TAX AND UTILITY CHARGES SURVEY OF MAJOR CANADIAN CITIES
aiiiidenton PLANNING AND DEVELOPMENT
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1995 Residential Property Tax and Utility Charges Survey of Major Canadian Cities RECOMMENDATION:
That the following report be received as information.
REPORT The City of Edmonton conducts an annual residential property tax and utility charges survey of major Canadian cities to assess the relative burden on Edmonton property taxpayers. The property tax portion of the 1995 survey used a questionnaire to eighteen Canadian cities. Information on the utility charges was provided by ED TEL, Edmonton Power, Public Works and Transportation Departments. Edmonton Ranks Sixth Lowest in Residential Property Taxes Edmonton ranked sixth lowest among the eighteen cities in total residential property tax levy after deducting homeowner grants. This is a slight change from 1994's fifth lowest position (see Enclosure l). Edmonton's average property tax increase since 1990 was 2.6% per year, lower than the eighteen cities' average of 3.1% (see Enclosure II). The increase was lower than the combined rate of 3.4% for Edmonton's annual inflation (2.4%) and estimated annual population increase (1.0%) over the same period.
Edmonton Ranks Eleventh Lowest in Residential Utility Charges Edm9nton ranked eleventh lowest among the cities for total utility charges in 1995, a slight
improvement from 1994 (see Enclosure III). The total utility charges for telephone, power, water and sewer for a single detached house in Edmonton, excluding surcharges, was $95.49 per month or $1,146 per year. The average rate for the eighteen cities was $91.66 per month or $1,063 per year. Edmonton's charge for a touch-tone telephone was $14.25 per month, lower than the eighteen cities' average of $17.20. Edmonton's power rate of $42.41 per month for 500 kWh consumption was lower than the eighteen cities' average of $44.07. Edmonton's water rate of $25.22 (excluding surcharge ) and sewer rate of $13.61 (excluding surcharge ) per month for 22.7 ms water consumption were higher than the eighteen cities' averages of $18.12 and $12.28, respectively (see Enclosure IV). Factors affecting higher water and sewer rates in Edmonton include the application of user pay concept, higher costs of water and sewage treatment and lower financing assistance from other levels of government. Edmonton Ranks Eighth Lowest in Combined Residential Property Taxes and Utility Charges
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Edmonton's combined annual property taxes and utility charges, excluding water mains and sewer upgrading surcharges, were $2,668 per single family dwelling, lower than the eighteen cities' average of $2,903. Edmonton's combined residential property tax and utility charges ranked eighth lowest among the cities (see Enclosure V). A slight change from last year's seventh position.
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Conclusions
Although Edmonton had relatively higher utility charges as a result of higher water and sewer rates, its combined property taxes and utility charges were lower than the eighteen cities' average and ranked eighth lowest. Edmonton's position for combined property taxes and utility charges changes slightly from 1994. Edmonton's 1995 property tax levy was 17.3% lower than the eighteen cities' average and 7.2% lower than Calgary's tax levy. The use of inter-city residential property tax differences to compare municipal government efficiency is inappropriate. Property tax differences among municipalities are attributable to factors such as the structure of municipal operating revenues, the level of municipal services, the cost of service provision, the use of split mill rates and the extent of application of the user pay approach. However, property tax differences are a useful measurement of the comparative tax burden.
ENCLOSURES
I. II. III. IV. V.
Property Tax Levy on a Single Family Home in 1995 Average Annual Property Tax Increase, 1990-1995 Total Monthly Utility Charges for a Single Family Home in 1995 Average Monthly Utility Charges for a Single Family House, as of October, 1995 Combined Property Tax and Utility Charges for a Single Family House in 1995
Written by: Jong Huang Approved by: Bruce Duncan Planning and Development Department November 27, 1995
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Property Tax Levy on a Single Family Home in 1995 111111 Dollars 3500 3000 2500 2000 1500 1000 500 0
kes.i- 6 ot• db. No A •■ 40, #+ 6 ek IP 6CP * Nz• 6P *tc9 es0 e ,co tib $% o *4` t% •Q .6. o& Aci '3( .4•° sio% tk. (0° 0+ Z)C)4%c' cfr *2•2° oc) 1. .os 0."gebo e 4c". 404.4, cDtke t>c' cr eoers. ‘c ebky ,,, 42-"b •Vb' cot' • N./ A r.)
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Prepared by: City of Edmonton, Planning and Development Department, November 1995 Note: Figures include municipal, regional and school taxes, but are net of homeowner grants or credits if applicable.
Enclusure I-a
Comparative Property Tax Levy on a Sample House in 1995 (1) City
Property Tax Levy
Population Municipal
696 I
Calgary Medicine Hat Montreal Victoria .
School
Other I Total
944
1,640
Homeowner Grants or Credits
Net Property Tax Levy (After Grants)
10
0
45,892
1,030,678
Rank
1,108 .5140:
1
2,582
,662
74,000
250
2,080
1,610
8
198,395
86
1,793
1,793
12
612
2,324
2,324
14
703 Saskatoon Toronto
Owa
11.:E0M11
:NOWYL, Halifax
0I
114,455
1144.gir 1,652 I
1,652
UN. Fredericton
0
1,748
3,236
1,725
(4)
1,511
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St Jtrn!s Prepared by: The City of Edmonton, Planning and Development Department, Planning Services Branch, November 1995. 1. The sample house is defined as a detached three bedroom bungalow with a main floor area of 1,200 square feet, Notes: on a 5,500 square foot lot, ten to fifteen years old, one car garage, full basement but no recreation room or fireplace. 2. Property tax levy is based on a median single family house which may not correspond to the sample house described above. 3. Grant for homeowner 64 years or under is $470; for senior citizens or handicapped the grant is $745. 4. Provincial government home owners grant for owner occupied dwellings
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Average Annual Property Tax Increase 1990-1995
II
t•
bv. N.0_53. ,e , 4%0 ' eitS`' roe' Ne
4,1/4, e c%to0*Qe6 k a • 0'4 *0 •P A4 at■ •2* ttO e 4C *4: e 4° - co‘• cf Sobe 44% •S CrcoN, coe,sga" <tip b qr ° N.o 4% .0 e, 440. geo .- vi
Prepared by: The City of Edmonton, Planning and Development Department, November 1995
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Enclusure II-a
Average Annual Property Tax Increase 1990 - 1995 Property Tax Levy 1990 1995
City
($ EDMQFflQN Calgary
($)
)
1,519
DA flr
........................ ... i‘lediCine-1-1.at
977
Average Annual Increase (%)
1,640
1116$4111: 1,108
11.01:01 2,582
Montreal Vancouver Victoria •Regina ..... Saskatoon
Rank
1.54 2.55
NIA
11 N/A
41330 1,660 I 791 1,628
Wtrrtipeg
1,610
gi9:190: 1,793
(0.6. 1
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1.66.
MEN 1,925
Toronto
2;324
3.84
14
3,180
4.07
15
gni
North York
2,605
Saint John
1,343
0.91
Fredeiicton St. John's
18 City Average
I
1,000
1,100
1.92
1,577
1,840
3.13 I
Prepared by: The City of Edmonton, Planning and Development Deptartment Planning Services Branch, November 1995. Note: Percent increases are for net property tax levy on the sample house as defined in Enclosure 1.
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Total Monthly Utility Charges for a Single Family Home in 1995 III Dollars 120 -7-100 80 60 40
.°
+c)
op 40 et0 fkl°+ +' str .Z■r' 6 cpa cr-
Prepared by: The City of Edmonton, Planning and Development Department, November 1995
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Nee
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e 4f• 41,.4 6 _to A 46 co* 444 c° .4%"' P cr
9.111S0101J3
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Enclosure IV
IP
Average Monthly Utility Charges for a Single Family House (as of October, 1995) (dollars) Telephone(1) Power(2) Water(3)
City
Sewer(3)
[28.63] [4]
[18.96] [5]
16.02
41.33
18.13
14.11
Lethbridge
16.02
44.72
25.06
17.91
Vancouver
411.1 20.30
••••••••••••••••••••••• ........................ ......................... 36.60
12.61
Regina
18.30
48.95
20.65
15.46
14.45
36.93
17.76
18.32
Red Deer
Rank
Total [104.25] 89..59 ..
Medicine Hat 17
103.71
57•0462 69:51 16
103..36...
:Saskatoom Winnipeg
. . . .
grigi
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Ottawa
15.70
42.96
12.85
12.04
83.55
North York
19.80
49.41
20.13
4.00
93..34 ..
Saint John
16.70
44.08
16.61
16.48
93..87 ..
14.80
St. John's
II:di:iv :
i
v : e
52.79
87.46
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13.33
6
10
L49. 80.92
a:
Prepared by: The City of Edmonton, Planning and Development Department, Planning Services Branch. November, 1995. Sources: Edmonton Power, Ed Tel, Public Works and Transportation Departments. Notes: (1) For a touch-tone phone (2) Based on 500 KWH/Month power consumption (3) Based on 23 cubic meter/month water consumption,except for Calgary which is based on the average domestic consumption of 33 cubic meter/month to reflect the residential flat rate (4) Figure in bracket includes surcharge for cast iron water main. (5) Figure in bracket includes surcharge for sewer upgrading.
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• Combined Total Property Tax and Utility Charges for a Single Family Home in 1995
icfI Dollars 4500 4000 3500 3000 2500 2000 1500 1000 500 -
tk, 03 • to e"e 1P4\c•I'9
-c•
41/4.
-
-
-
fa° eop .4? cp 64b e6 co to .41/42,1- A c% o tk? .4f.` 64° 04C ,pc' z,‘P ':b 4.09 1.40 cpb$
42° ce Nee
,
<re
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coto
IP ,t(fr
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Prepared by: City of Edmonton, Planning and Development Department, November 1995 Note: Property taxes include municipal, regional and school taxes, but are net of homeowner grants or credits if applicable
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Enclosure V-a
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Annual Total Property Tax and Utility Charges for a Single Family House in 1995 Net (1) Property Tax ($)
City
Average Utility Charges ($)
Total ($)
Rank
[1,251.].. [2]
[2,773] [2]
1,554
1,075
2,62-9
1,325
1,245
2,570
Vancouver
1,667
834
Regina
2,010
1,240
3,250
13
2,379
1,050
3.429
15
4,300
17 18
111111.04:011111.
Red Deer Lethbridge
Moritreal
Saskatoor Winnipeg Toronto Ottawa North York Saint John PrederICtt St. John's
.
tiORt .......
2,752 3,180 i:0$1 ,405 ,100
1,120
2,501
own
,126 971
2,071
Prepared by: The City of Edmonton, Planning and Development Department, Planning Services Branch. October 1995
Notes: (1) Property tax levy net of homeowner grants or credits. (2) Figure in bracket includes surcharges for cast iron water mains and sewer upgrading.