Budget Steering Committee 
 

DEPARTMENT:
Budget Steering Committee
REPORT NUMBER:
2018-17-BSC
PREPARED BY: Tracey Bailey, General Manager, Financial Services 
REPORT DATE: 01/31/2018
MEETING DATE: Feb 05, 2018 04:00 PM - Budget
 
SUBJECT:Assessment and Property Tax Information - Commercial Class


 



PURPOSE

To provide further information regarding assessment and property tax information for the Commercial Class (by type) as requested at the meeting of January 25, 2018.



INFORMATION

All properties are classified according to their use. The following Table provides a summary of the City's commercial properties listed by type.


The change in CVA is a combination of phased-in assessment and growth.

MPAC determines the value of a property using one of three different approaches to value:

    • the direct (sales) comparison approach
    • the income approach
    • the cost approach

If a portion of the property is used for other purposes, it may be necessary to value those components separately and sum the component values to achieve the correct total current value. It may also be necessary to apportion the total value of the property between the various uses to ensure that the appropriate tax rate is applied to the relevant parts of the property.

The City's commercial property portfolio is very diverse, both in type and in value:

    • 894 properties (88%) of the City's commercial properties are valued under $1M and represent approximately 23.5% of the assessed value of the portfolio.
    • 99 properties (10% of the portfolio) are valued between $1M and $5M and represent approximately 24% of the assessed value of the portfolio.
    • 10 properties (1% of the portfolio) are valued between $5M and $10M and represent approximately 7.5% of the assessed value of the portfolio.
    • 7 properties (0.7% of the portfolio) are valued between $10M and $40M and represent approximately 15% of the assessed value of the portfolio.
    • 3 properties (0.3% of the portfolio) are valued over $40M and represent approximately 30% of the assessed value of the portfolio.
It should be noted that 20 commercial properties represent more than 50% of the total value of commercial property in the City's commercial portfolio.


















Approval

February 02, 2018 09:42 AM
Tracey Bailey
General Manager, Financial Services
February 02, 2018 10:06 AM
Maureen Adams
Chief Administrative Officer