January 3, 2017 - Minutes

Date:

Tuesday, January 3, 2017

Place:

Anderson Room
Richmond City Hall

Present:

Mayor Malcolm D. Brodie, Chair
Councillor Chak Au
Councillor Derek Dang
Councillor Carol Day
Councillor Ken Johnston
Councillor Alexa Loo
Councillor Bill McNulty
Councillor Harold Steves

Absent:

Councillor Linda McPhail

Call to Order:

The Chair called the meeting to order at 5:24 p.m.

MINUTES

It was moved and seconded

That the minutes of the meeting of the Finance Committee held on December 5, 2017, be adopted as circulated.

CARRIED

RICHMOND OLYMPIC OVAL CORPORATION

1.

RICHMOND OLYMPIC OVAL CORPORATION – 3RD QUARTER 2016 FINANCIAL INFORMATION
(File Ref. No.) (REDMS No.)

In reply to queries from Committee, Rick Dusanj, Controller, Richmond Olympic Oval Corporation, advised that an orientation meeting to brief Council members on the Richmond Olympic Oval Corporation’s financial activities could be arranged upon request.

It was moved and seconded

That the report on Financial Information for the Richmond Olympic Oval Corporation for the third quarter ended September 30, 2016 from the Controller of the Richmond Olympic Oval Corporation be received for information.

CARRIED

2.

Richmond Olympic Oval – 2017 Annual Operating and Capital Budgets
(File Ref. No.) (REDMS No. 5257684)

It was moved and seconded

That the report on the 2017 Annual Operating and Capital budgets for the Richmond Olympic Oval Corporation from the Controller of the Richmond Olympic Oval Corporation be received for information.

CARRIED

FINANCE AND CORPORATE SERVICES DIVISION

3.

Financial Information – 3rd Quarter September 30, 2016
(File Ref. No. 03-0905-01) (REDMS No. 5206270 v. 3)

It was moved and seconded

That the staff report titled, “Financial Information – 3rd Quarter September 30, 2016,” dated November 10, 2016 from the Director, Finance be received for information.

CARRIED

4.

Provincial Tax Deferment Program
(File Ref. No.) (REDMS No. 5261230)

A revised copy of the staff report titled “Provincial Tax Deferment Program” was distributed (copy on file, City Clerk’s Office).

Ivy Wong, Manager, Revenue, reviewed the Provincial Tax Deferment Program, noting that 2017 property assessments values have increased an average of 42.37% for single-family homes compared to 22.33% for stratified homes, with an overall average increase 35.21% in the city. She added that the disparity of the average increase in property assessment values will result in an increase in property tax for single-family homes and a decrease in property tax for stratified homes

Staff noted that as a result of the average increase in property assessment values, some properties will not qualify for the Home Owner Grant Program.

In response to a query, staff confirmed that residential school tax rates are set by the Province and have increased an average of approximately 4.14% annually.

Discussion ensued with regard to (i) the impact of the increase in property assessment values on the Provincial school tax allocation for properties, (ii) increasing the qualifying threshold for the Home Owner Grant Program, and (iii) potential negative effect of deferring property taxes on a property’s equity, especially on property owners new to the real estate market.

It was moved and seconded

(1)

That staff be directed to make people aware of the Provincial Tax Deferment Program as a means of reducing the current financial burden for seniors and families with children, as well as providing information regarding assessment appeals;

(2)

That staff be directed to analyze the benefit and the possibility of having more than one residential tax rate to deal with the valuation disparity between strata and single family detached residential properties;

(3)

That a letter be written to the Premier of British Columbia, Minister of Finance, and local MLAs, requesting the Province make changes to the Home Owner Grant program and school tax allocation program to provide a more fair and equitable system of property taxation in BC; and

(4)

That a letter be written to the Premier of British Columbia, Minister of Finance, and local MLAs, requesting the Province increase the 2017 Home Owner Grant threshold to reflect the substantial increases in assessments of principal residences in Metro Vancouver.

The question on the motion was not called as discussion ensued with regard to the property assessment appeal process and the types of individuals that may benefit from the Provincial Tax Deferment Program.

The question on the motion was then called and it was CARRIED.

5.

Consolidated 5 Year Financial Plan (2017-2021) Bylaw No. 9663
(File Ref. No. 03-0985-01) (REDMS No. 5252435)

It was moved and seconded

(1)

That the Consolidated 5 Year Financial Plan (2017-2021) Bylaw No. 9663 be introduced and given first, second, and third readings; and

(2)

That staff undertake a process of public consultation as required in Section 166 of the Community Charter.

CARRIED

ADJOURNMENT

It was moved and seconded

That the meeting adjourn (5:59 p.m.).

CARRIED

Certified a true and correct copy of the Minutes of the meeting of the Finance Committee of the Council of the City of Richmond held on Tuesday, January 3, 2017.

_________________________________

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Mayor Malcolm D. Brodie
Chair

Evangel Biason
Legislative Services Coordinator