City of Hamilton

2008 Budget & Tax Policy

Overview

Flamborough

May 7th, 2008

City of Hamilton

2008 BUDGET

3

2008 Budget• Tax Budget

• Total $1.1 billion

• Amount raised in taxes = $630.1 million

• Average residential taxes = $2,657 ($3,204 with educ)

• Water and Sewer

• Total $163.4 million

• Average bill (260m3) = $569; (300m3 = $648)

• Capital Budget

• 10 year - $1.4 billion

• 1 year - $150 million

• Annual impact $76.8 million (6.7%)

4

2008 Tax Budget by Department ($ millions)

DRAFT; Note – All figures rounded

2007 2008BUDGET BUDGET $ %

Planning & Economic Development 14.9$ 16.2$ 1.3$ 9.0%Public Health Services 8.4 8.7 0.2 2.8%Community Services Department 161.5 158.1 (3.5) -2.1%Hamilton Emergency Services 73.9 81.6 7.8 10.5%Public Works 155.4 162.2 6.7 4.3%Corporate Servies 33.2 34.6 1.5 4.4%Net General Revenues (73.9) (69.3) 4.6 -6.3%Capital Program 73.7 76.8 3.1 4.2%Boards & Agencies / Grants 154.6 161.2 6.6 4.3%

NET CITY EXPENDITURES 601.6$ 630.1$ 28.4$ 4.7%

CHANGE

5

City Services• Planning & Economic Development $16.2 M

• Building / Licensing

• Economic Development / Tourism

• Parking / School Crossing / Animal Control

• Long Range Planning / Downtown Renewal

• Public Health $8.7 M

• Medical Officer of Health

• Health Protection / Family Health / Healthy Living

• Community Services $158.1 M

• Employment & Income Support / Benefit Eligibility

• Social Development & Early Childhood Services

• Social Housing

• Macassa & Wentworth Lodge

• Culture & Recreation (area rated)

6

City Services• Hamilton Emergency Services $81.6 M

• Fire (area rated)

• Ambulance (Emergency Medical Services

• Emergency Preparedness / Corporate Radio System

• Public Works $162.2 M

• Roads / Traffic / Winter Control / Parks

• Transit (area rated) / DARTS

• Waste Management

• Fleet & Facilities

• Capital Planning Implementation

• Corporate Services $34.6 M

• Mayor / Council

• City Manager / Legal / Audit / Human Resources

• Finance / Taxation / Customer Service / Clerks / IT

7

City Services

• Net General Revenues ($69.3 M)

• Community Reinvestment Fund (CRF)

• One-time Provincial special funding

• Slot Revenues / Investment income

• Hydro dividends ($6.5 million)

• Payment-in-Lieu of taxes / supplementary taxes / penalties + interest

• Provincial Offences Act (POA)

• Capital Program $76.8

M

• Boards & Agencies $161.2 M

• Police ($116.1 M)

• Library ($25.3 M)

• HECFI / MPAC / GO transit / Conservation Authorities ($14.7 M)

8

New Initiatives - 2008

• Strategic Capital Investments $8.0M

• Land ambulance $6.0M

• Red Hill / Hwy 6 $3.0M

• Economic Development $1.5M

• Transit services $0.5M

• National Child Benefit (NCB) $0.3M

• Tree trimming $0.3M

• Integrity Office $0.05M

9

2008 Total Taxes$806 million

Education22%

Culture & Rec4%

Transit4%

Fire8% General Levy

62%

$507.1 million

$176.0 million

Area Rated 16%

$122.9 million$64.7 million

$29.2 million

$29.0 million

10

2008 Residential Tax Impacts*(based on City-wide average)

* includes transit where applicable

City-Wide Municipal Only 4.6%

$ %Stoney Creek 206,900 2,948$ 3,022$ 74$ 2.5%Glanbrook 206,900 2,806$ 2,871$ 65$ 2.3%Ancaster 206,900 2,909$ 3,046$ 137$ 4.8%Hamilton 206,900 3,302$ 3,405$ 104$ 3.1%Dundas 206,900 2,986$ 3,064$ 78$ 2.6%Ward 14 (Flamborough only) 206,900 2,702$ 2,938$ 236$ 8.7%Ward 15 (Waterdown) 206,900 2,702$ 2,970$ 267$ 9.9%

City-Wide 206,900 3,087$ 3,204$ 116$ 3.8%

Average 2007 Total

Taxes

Average 2008 Total

Taxes

Total TaxesIncrease

City-wide Average Residential Assessment

11

2008 Residential Tax Impacts*(based on Municipal average)

* includes transit where applicable

City-Wide Municipal Only 4.6%

$ %Stoney Creek 227,300 3,239$ 3,320$ 81$ 2.5%Glanbrook 215,400 2,922$ 2,989$ 68$ 2.3%Ancaster 315,500 4,434$ 4,645$ 211$ 4.8%Hamilton 173,000 2,761$ 2,847$ 87$ 3.1%Dundas 253,000 3,651$ 3,746$ 95$ 2.6%Ward 14 (Flamborough only) 277,600 3,626$ 3,942$ 316$ 8.7%Ward 15 (Waterdown) 301,300 3,935$ 4,325$ 390$ 9.9%

City-Wide 206,900 3,087$ 3,204$ 116$ 3.8%

Average 2007 Total

Taxes

Average 2008 Total

Taxes

Total TaxesIncrease

Municipal Average Residential Assessment

12

2008 Residential Tax Impact

• General increase 2.9% 2.9%

• Transit 0.0% 1.2%

• Fire 1.3% 1.3%

• Slot revenues 4.5% 4.5%

• TOTAL TAX IMPACT 8.7% 9.9%

Ward 14(Flamb only)

Ward 15(Waterdown)

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2007 2008$ $ $ %

Municipal LevyPolice Services 641 665 $24 3.7%Public Health & Community Services 662 649 ($12) (1.9%)Roads Programs 491 510 $19 3.9%Waste Management Services 235 241 $6 2.5%Administrative Services 201 209 $8 3.8%Capital Infrastructure/Other Services 174 178 $4 2.4%Parks 152 158 $6 4.2%Library 148 153 $4 2.9%Boards/Agencies/Comm. Partnership Program 116 120 $4 3.7%Emergency Medical 79 109 $30 37.7%Planning/Economic Development 67 76 $8 12.5%Accessible Transportation Services (ATS) 65 69 $4 6.7%Provincial Funding (73) (73) $0 0.0%

Area Rates***Fire Services 202 251 $48 23.8%Culture and Recreation Services 94 73 ($22) (22.9%)Transit (HSR) 0 45 $45 100.0%Slot Revenues (201) 0 $201 100.0%

Total City Services 3,053 3,432 $379 12.4%

Education 774 774 $0 0.0%

Total Taxes 3,827 4,206 $379 9.9%

Cost by Service for a Typical Flamborough HouseholdChange

Cost by Service – 2007/2008

Based on a home assessed at $293,000; 2007 restated

** 2008 = -$24 from slot revenues in general levy (net impact = +$177)

**

* Ward 14 (Flam) does not pay for transit

*

14

2008 Tax Impacts by Property Class

Property Class

Total Tax Impact(municipal + education)

FL (14) FL (15)City-Wide

Residential 8.7% 9.9% 3.8%

Multi-Residential 10.0% 11.4% 3.5%

Commercial 4.7% 5.5% 1.3%

Industrial 6.0% 7.0% 1.6%

Farm 8.5% 8.5% 5.8%

Total 7.8% 8.7% 3.1%

15

Hamilton 1.596% 1.646%

Dundas 1.443% 1.481%

Ancaster 1.404% 1.472%

Stoney Creek 1.425% 1.461%

Flamborough 1.306% 1.435%

Glanbrook 1.356% 1.388%

Residential Tax Rates(in the Transit Area)

Note: includes education tax rate (0.264%)

2007 2008

16

Hamilton N/A N/A

Dundas 1.422% 1.459%

Ancaster 1.386% 1.453%

Stoney Creek 1.399% 1.434%

Flamborough 1.306% 1.420%

Glanbrook 1.325% 1.356%

Residential Tax Rates(outside the Transit Area)

Note: includes education tax rate (0.264%)

2007 2008

17

2001 - 2008 Approved Capital ProjectWard 14 & 15

(000's)

$

Parks ($1,286,000)Courtcliffe Park 290

Joe Sams Leisure Park Phase 2 Development 160

Johnson Tew Park 117

Waterdown Memorial Park 719

Recreation ($14,185,000)Flamborough Twin Pad Arena 13,885

New Flamborough Y.M.C.A. 300

Library ($5,302,000)Waterdown Branch Library 5,302

Emergency Services ($2,790,000)Generators - HES Stations 230

Station # 31 - Carlisle - Fire Vehicle 560

Station #31 - Waterdown 1,500

EMS Station - Greensville #25 400

Station #24 - Composite Accommodations 100

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2001 - 2008 Approved Capital ProjectWard 14 & 15

(000's) (000's)$ $

Roads ($24,109,000)Beeforth Road - Concession 5 E to Concession 6 E 250 Fifth Concession W. - Sheffield to Lynden 670

Binkley - Governors to Mineral Springs 210 Governor's Road at Highway 52 100

Bridge 147 - Puslinch Townline Road 550 Highway 5 - Highway 8 to Woodhill 700

Bridge 20 - Concession 5 W 400 Highway 5 - Woodhill to Sager 1,000

Bridge 349 - Centre Road 800 Highway 52 & Jerseyville Roundabout 150

Bridge 4 - Concession 8 W 400 Howard Boulevard - Highway 5 to Mays (S/L) / Orchard Drive 900

Bridge 409 - Regional Road 97 350 Hwy 52 - Hwy 5 to Governor's 652

Bridge 65 - Mountsberg 700 Jerseyville Rd - Old Ancaster Landfill 50

Bridge 70 - Concession 10 E 500 Lennon Road - Highway 97 to Concession 10 300

Brock Rd - Concession 8 W to Safari 430 Maddaugh/Centre/Puslinch Townline 440

Brock Rd - RR 97 to Concession 8 W 450 Middletown Rd - Eighth Conc. W to Safari Road 310

Campbellville Rd - Centre to Milburough TL 750 Middletown Rd - Fourth Conc. W to Fifth Conc. W 460

Centre Road - Campbellville to Concession 11 1,110 Progreston Rd - Centre to Carlisle 350

Centre Road - Progreston to Carlisle 200 Regional Road 97 - Valens to Middletown 700

Concession 10 E - Centre to Townline 420 Rock Chapel - Valley to Sydenham 470

Concession 11 E - Centre to Milburough Townline 330 RR97 - Middletown to Hwy #6 & Middletown - RR97 to end 500

Concession 11 E - Highway 6 to Centre 310 Safari - Brock to Highway 6 330

Concession 2 W - Lynden to Weir 320 Safari - Kirkwall to Valens (east leg) 280

Concession 4 W - Lynden to Sheffield 400 Safari - Middletown Rd to Brock Rd 290

Concession 4 W - Millgrove Side Road to Highway 6 300 Safari - Valens to Westover 280

Concession 4 W - Ofield to Millgrove Side Rd 340 Safari - Westover to Middletown 300

Concession 6 E - Centre Road to Beeforth Road 240 Sidewalk on Centre Road West Side & East Side 154

Concession 6 E - Highway 6 to Centre Road 390 Sidewalks-Parkside Dr.(N & S side) from Church St. to Boulding 93

Concession 8 E - Centre to Milborough Townline 380 South Waterdown Watershed & Secondary Plan 300

Concession 8 W - Brock to Middletown 400 Waterdown South Arterial Road Schedule C Class EA 1,000

Concession 8 W - Highway 6 to Brock 250 Waterdown Transportation Plan 800

Concession 8 W - Middletown to Westover 380 Westover - Safari to Concession 5 450

Cooper Road - Safari to Eighth Concession W. 330 William Street - Centre to Carlisle 190

19

2001 - 2008 Approved Capital ProjectWard 14 & 15

(000's)

$Property Maintenance ($137,000)Flam Town Hall (HVAC Systems) 137

Waste Management ($71,730,000)Assess & Rehabilitation - Former Beverly Landfill 130

Central Composting Facility 34,000

Green Cart Implementation 17,300

Materials Recycling Facility 10,800

Community Recycling Centres 9,500

Rates Related Projects ($22,359,000)North Waterdown Elevated Storage (Water Tower) 8,100

Watermain Parkside-Main to East limit 4,020

Lynden additional Water Supply 900

Carlisle Communal Well Upgrade 2,200

Freelton Communal Well Upgrade 2,180

Lynden Communal Well Upgrade 1,000

Greensville Communal Well Upgrade 500

Main St. N & S - Cedar to Griffin 1,140

Reservoir AOA at Morden Neighbourhood 340

Trunk Feeder main from Escarpment to Bayview 250

First - 73m N/W of Niska to Hwy #5 (P.S. S-D14) 690

Riley - Hwy #5 to approx. 340m N & Easement 773

Mill N - Church to Hwy #5 & Church - Mill N to Victoria 266

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Per Capita Municipal Comparisons

2006 FIR, Census Population

MunicipalityBrantford 145 257 141 14 56 Burlington 118 188 166 16 60 Hamilton 120 231 130 31 83 Kitchener 122 191 140 24 71 London 136 215 137 29 66 Mississauga 107 200 64 21 62 Oshawa 167 213 61 Ottawa 129 234 131 74 227 Sudbury 112 237 207 94 57 St. Catharines 139 252 203 25 35 Toronto 144 325 69 22 169 Windsor 158 315 81 13 62

Average 133 238 134 33 84

2006 NET EXPENDITURES PER CAPITA

TransitFire Police Roadways Winter Control

21

Per Capita Municipal Comparisons

2006 FIR, Census Population

MunicipalityBrantford 24 26 173 39 13 84 Burlington 13 28 99 30 11 80 Hamilton 24 24 168 24 18 126 Kitchener 19 18 99 17 14 58 London 19 23 152 22 21 87 Mississauga 15 18 102 19 9 67 Oshawa 23 28 22 61 Ottawa 27 27 168 23 30 103 Sudbury 39 52 162 24 22 102 St. Catharines 24 29 119 22 14 82 Toronto 28 29 168 20 32 172 Windsor 13 35 160 46 28 132

Average 22 28 143 26 20 96

2006 NET EXPENDITURES PER CAPITASocial

HousingPublic Health Ambulance

General Assistance

Assistance to the Aged

Child Care

22

Per Capita Municipal Comparisons

2006 FIR, Census Population

MunicipalityBrantford 13 (7) 21 50 53 40 16 Burlington 17 15 15 38 81 51 24 Hamilton 27 23 18 33 67 53 9 Kitchener 19 5 10 46 75 42 28 London 21 11 9 29 78 55 13 Mississauga 15 28 24 32 54 40 27 Oshawa 24 18 53 166 63 Ottawa (16) 8 25 33 92 47 22 Sudbury 26 7 30 36 65 43 17 St. Catharines 12 8 (2) 51 72 35 22 Toronto 17 29 35 57 87 63 11 Windsor 21 26 25 48 69 37 22

Average 16 15 19 42 80 47 19

2006 NET EXPENDITURES PER CAPITAWaste

DisposalRecycling

Waste Collection

Library PlanningParks Recreation

23

Assessment per Capita(unweighted)

$157,873

$136,904

$126,635 $125,510 $122,158

$98,121

$76,678

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

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2007 Municipal Study

City of Hamilton

HISTORICAL

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2001 – 2007 Key Budget PressuresCity-wide Impacts

2001 – Amalgamation savings maintained levy at less than

inflationary increase.

2002 – Waste Mgt; Emergency Services; Transit; Public Health

2003 – Police Services; Capital

2004 – Police Services; Capital; Winter Control; Transit

2005 – Winter Control; Homes for the Aged

2006 – Social Services; Waste Mgt

2007 – Social Services; Waste Mgt; DARTS; Tax Write-offs

26

Historical Average ResidentialTax Impact

Average Residential Tax Impacts (2001 – 2008)

2001 2002 2003 2004 2005 2006 2007 2008 AverageStoney Creek 0.1% 4.3% 2.6% 3.9% 3.4% 2.9% 3.3% 2.5% 2.9%Glanbrook 1.6% 6.0% 6.7% 6.2% 3.4% 0.6% 1.9% 2.3% 3.6%Ancaster 1.9% 6.1% 7.9% 8.8% 3.8% 2.2% 3.8% 4.8% 4.9%Hamilton 0.1% 4.7% 2.0% 5.6% 2.5% 2.3% 3.5% 3.1% 3.0%Dundas 0.1% 4.9% 3.8% 5.4% 4.9% 3.6% 3.5% 2.6% 3.6%Flamborough (Waterdown) 2.4% 6.9% 9.6% 6.3% 4.8% 1.2% 3.7% 9.9% 5.6%Flamborough (other) 2.4% 6.9% 9.6% 6.3% 4.8% 1.2% 3.7% 8.7% 5.5%

City-wide Average 0.5% 4.6% 3.6% 5.9% 3.2% 2.3% 3.4% 3.8% 3.4%

Annual residential impacts - includes budget, reassessment, area-rating, education and tax policies

27

Historical Average ResidentialTax Impact

Breakdown of Flamborough Average Residential Tax Impacts (2001 – 2008)

2001 – without area rating, Flamborough would have experienced an average tax increase of 27%

2001 2002 2003 2004 2005 2006 2007 2008Reassessment 4.5% 0.0% 6.7% -0.6% 0.0% -2.8% 0.0% 0.0%Phase-in Plan -7.3% 2.3% 1.6% 2.2% 0.0% 0.0% 0.0% 0.0%Budget (Municipal levy change less growth) 0.7% 2.6% 2.6% 5.0% 3.6% 1.8% 3.7% 3.9%Area Rating / Tax Policy / Levy Restriction 4.5% 2.0% -1.3% -0.3% 1.2% 2.2% 0.0% 6.0%

Average Flamborough Tax Impact 2.4% 6.9% 9.6% 6.3% 4.8% 1.2% 3.7% 9.9%

28

Flamborough – 2000 Taxes

Region77%

Local23%

2000 Municipal Taxes

$28.5 million

Region50%

Education35%

Local15%

2000 Total Taxes

$44.0 million$6.7 million

$21.8 million

$21.8 million

$6.7 million

$15.5 million

29

Flamborough – 2007/08 Taxes

General Levy68%

Education24%

Area Rated Levy8%

2007 Total Taxes$62.8 million

2008 Total Taxes$70.5 million

$48.3 million

$5.4 million

$16.8 million

General Levy73%

Education25%

Area Rated Levy2%

$45.5 million

$15.8 million

$1.5 million

30

Share of Municipal Taxes2000 vs 2008

Flamborough6.3%

Dundas4.6%

Glanbrook1.9%

Ancaster6.0%

Stoney Creek11.2%

Hamilton70.0%

Includes both Local and Regional Municipal Levy

2000 Municipal Taxes

$452.7 Million

Dundas4.7%

Flamborough8.5%

Glanbrook3.4%

Ancaster8.7%

Stoney Creek12.6%

Hamilton62.1%

2008 Municipal Taxes

$630.1 Million

City of Hamilton

AREA RATING

32

Background

• O’Brien commission report recommended area rating as a means to mitigate differences in services and costs. It specifically mentioned Fire & Transit

• City/Region joint submission recommended area rating fire, library, recreation and transit

• At amalgamation, Bill 25 provided for the creation of special service levies. This authority to add area rated services under Bill 25 ended in 2002– Once remove service from area rating, must adhere

to “special service” definition to be able to area rate again

33

Background

• Area rating was used as a means to

mitigate differences in:

–Services and service levels

–Cost to deliver the service

–User fees for same service

–Tax increases due to amalgamation

34

Background

• Municipal Act allows municipalities to area rate “special

services”

• “Special Service” is defined in the Act as “a service or

activity of a municipality…that is

(a) not being provided or undertaken generally

throughout the municipality, or

(b) being provided or undertaken at different levels or in a

different manner in different parts of the municipality”

• Decision to area rate is at the sole discretion of the

city council (reviewed annually)

35

Background

• Prior to amalgamation, the former Region of Hamilton-Wentworth area rated the following services:• Transit (50/50)

• Wentworth Library (SC, GL, AN, FL only)

• Waste Management (tonnage)

• Storm Drainage (Hamilton only)

36

Background

• In 2001, Council adopted the following area rated services:• Transit (Flam = $0)• Fire (Flam = $1,181,260)• Culture & Recreation (Flam = $781,900)• Storm (Flam = $0)• Senior’s Tax Credit (Flam = $0)• Slot Revenues (Flam = $615,000)• Financial Adjustments (Flam = $300,000)

37

Background

• Since 2001, Storm, Senior’s Tax Credit and Financial Adjustments have been removed from area rating

• The City of Hamilton area rated the following services in 2007:• Transit• Fire• Culture & Recreation• Slot Revenues

• Area rate by former area municipality

38

Slot Revenues (2001 - 2008)

2001 2002 2003 2004 2005 2006 2007 2008

Tax LevyLevy-Flamborough 615,000 730,000 1,230,000 1,730,000 2,030,000 2,030,000 2,030,000 Fire -Waterdown 80,000 305,540 305,540 305,540 305,540 1,055,540 Area Rated-Flamborough 615,000 810,000 1,535,540 2,035,540 2,335,540 2,335,540 3,085,540 - Area Rated Ancaster-Fire 500,000 General Levy 250,000 4,000,000 Total Tax levy 615,000 810,000 1,535,540 2,035,540 2,335,540 2,335,540 3,835,540 4,000,000

Borer's CreekBorer's Creek Debt Payments 2,189,216 1,525,782 1,518,676 1,518,676 1,518,676 1,518,676 - - Outstanding Liability / Litigation 627,698 1,824,308 1,099,336 1,241,900 445,140 - - - Total Borer's Creek 2,816,914 3,350,090 2,618,012 2,760,576 1,963,816 1,518,676 - -

TOTAL 3,431,914 4,160,090 4,153,552 4,796,116 4,299,356 3,854,216 3,835,540 4,000,000

Total Tax Levy (area-rated Flamborough) 12,752,700$

Total Borer's Creek 15,028,083$ • Since 2001 a total of $27.8 million in Slot Revenues was directed to Flamborough• $12.8 million to lower tax impact • $15.0 million for Borer’s Creek

39

2008 Residential TaxesDifferences in Area Rated Services

Based on home assessed at $293,000)

Hamilton (wards 1-8)

Ward 14 (Flam only)

Ward 15 (Waterdown)

Total General Levy Services 3,064$ 3,064$ 3,064$

Fire 484$ 251$ 251$ Transit 268$ -$ 45$ Culture & Recreation 234$ 73$ 73$

Total Area Rated Services 985$ 323$ 368$

TOTAL MUNICIPAL SERVICES 4,049$ 3,387$ 3,432$

EDUCATION 774$ 774$ 774$

TOTAL TAXES 4,823$ 4,161$ 4,206$

40

• The following motion was approved by Council (Sept 26/07)

“That, “with the exception of the Flamboro Downs slot revenues”, the City of Hamilton maintain the current area rating tax policy for 2008, and the City of Hamilton begin a thorough review of the implications of eliminating area rating after the budget process, and for it to be presented to Council for June 2008.”

Area Rating - Council Direction

41

• Option 1: Maintain 2007 $ allocation to Flamborough and Ancaster, with the increase being applied exclusively to the General Levy

• Option 2: Prorate the increase in slot revenue to Flamborough, Ancaster and the General Levy based on 2007 allocation

• Option 3: Five-year phase-out of the slot allocation to Flamborough and Ancaster

• Option 4: Ten-year phase-out of the slot allocation to Flamborough and Ancaster

• Option 5: Five-year phase-out of the slot allocation to Flamborough and full elimination of the slot allocation to Ancaster

• Option 6: Full elimination of the slot allocation to Flamborough and Ancaster (entirely on the General Levy in 2008)

2008 Slot Revenues – Options

City of Hamilton

REASSESSMENT & TAX POLICY

43

Reassessment Schedule

Taxation Year Assessment Valuation Date

1998, 1999, 2000 June 30, 1996

2001, 2002 June 30, 1999

2003 June 30, 2001

2004, 2005 June 30, 2003

2006, 2007, 2008 January 1, 2005

2009 – 2012 * January 1, 2008

* Commencing in 2009, reassessments will be conducted every four years, coupled with the implementation of a mandatory phase-in program

44

Impact of Reassessments – Residential Class

Average Change In Property Values due to Reassessment

2001 2003 2004 2006Stoney Creek 6.8% 8.5% 7.7% 15.6%Glanbrook 7.8% 12.5% 8.0% 12.9%Ancaster 9.1% 13.3% 11.0% 15.8%Hamilton 6.9% 7.0% 8.3% 16.0%Dundas 8.6% 11.2% 9.9% 16.2%Flamborough 12.1% 16.9% 8.6% 12.2%

City-Wide 7.8% 9.4% 8.6% 15.4%

Resulting Average Tax Impacts due to Reassessment

2001 2003 2004* 2006*Stoney Creek -0.1% -0.6% -1.3% 0.2%Glanbrook 0.9% 2.7% -1.1% -2.1%Ancaster 1.7% 3.4% 1.6% 0.2%Hamilton 1.2% -1.8% -0.5% 0.6%Dundas 2.0% 1.6% 0.5% 0.6%Flamborough 4.5% 6.7% -0.6% -2.8%

City-Wide 1.4% 0.0% -0.4% 0.0%

* Incorporates offsetting reassessment tax shifts between property classes

45

Tax Policies

• No reassessment in 2008

• Next reassessment in 2009 (3 years between

valuation dates)

• impacts unknown

• many changes pending

• 4-year phase-in for all property class

• possible changes to capping program

46

• Relief to Low-income Seniors & Disabled – continue existing deferral program (no change)

• Rebates to Charities – continue existing program (40%)• Vacancy Rebates – continue existing program (30%

commercial; 35% industrial)• Legions / Veterans Exemption – no change, 3yr term

established in 2006• Seniors Tax Rebate – continue existing program, update

criteria:– Income = $30,170 ($29,600 in 2007)– Assessment = $266,300 ($265,100 in 2007)– Rebate = $156 ($153 in 2007)

Recommended 2008 Tax Policies