Coldstream Agenda Tuesday .

Regular Council Meeting Agenda for October 15, 2013
https://coldstream.civicweb.net/Documents/DocumentList.aspx?ID=10669

https://coldstream.civicweb.net/FileStorage/361F585AC5634CD3B521CB80913EBB6B-Rezoning%20Application%20No.%2013-013-ZON.pdf

Proposed Rezoning Kal Beach Properties

https://coldstream.civicweb.net/FileStorage/A34704FF3CC64353A0FA044E571E7A64-Staff%20Report%20&%20Bylaw%201635%20(FIRST,%20SECOND%20&%20THIRD%20R.pdf

2014 Permissive Tax exemptions Coldstream

Assessment of $13,369,500 (Kal Beach property including Parking Lot) 

Sally Ann ready to appeal loss of property tax break

FRIDAY, 11 OCTOBER 2013 02:00 JOHN MOORHOUSE Penticton Herald
Penticton city council's bid to eliminate property tax breaks for some selected charities isn't a done deal just yet, says a Salvation Army spokesman. Council voted unanimously this week to deny tax exemptions for six non-profit groups, while granting complete tax breaks for dozens of others. Major Dale Sobool of the Salvation Army in Penticton said Thursday it plans to appeal its tax status at the Oct. 21 council meeting. Sobool declined detailed comment at this time, but noted both sides will have an opportunity to present their cases at the time of appeal. "They'll have their point, we'll have our point and we'll see if we can meet in the middle somewhere." Sobool said the Salvation Army was certainly not caught off-guard by council's decision, noting the same thing occurred in 2012. "It's not something new," he said. "We did have to appeal last year." Council is considering withdrawing property tax breaks for those organizations with more than $100,000 in working capital. Some also don't meet the city's requirements for charitable organizations. In addition to the Salvation Army, other affected organizations include the South Okanagan-Similkameen Brain Injury Society, Penticton Seniors Drop-In Centre, Fraternal Order of Eagles, B.C. Wine Authority and B.C. Wine Information Centre. The Salvation Army, Brain Injury Society, Drop-In Centre and Wine Information Centre all received 100 per cent tax exemptions last year. Deb Clipperton, the city's acting revenue supervisor, noted tax exemptions are completely up to council. Instead of a 100 per cent tax break, council could decide to grant exemptions of 30, 50 or 75 per cent, or some other amount. Council plans to introduce a three-year tax exemption to churches and other places of worship, while more than 30 non-profit groups will receive a single-year exemption. Clipperton said all charity organizations were given advance warning that they might not qualify for a tax break. "Every year when we send out the applications, we advise everyone to make sure they budget for taxes because an exemption may not be granted," she said. Mayor Garry Litke noted the city's total tax exemptions amount to $511,000 a year, roughly equal to a two per cent general tax hike. "It's not like the receivers of this should take it as a given or a right," Litke said. "It is actually a gift from the city to them." Coun. Helena Konanz said council should consider the positive contributions from those groups who don't qualify for a tax break. "They need to have some working capital sometimes. Obviously they're not for profit organizations, so council could take that into consideration," she said. Coun. Judy Sentes said she fully supports the tax breaks. "I think this is a partnership that is an investment in social issues," Sentes said. "I know these churches all have programs for families in need and families in crisis." Council must listen to appeals from the rejected organizations at its next meeting in order to meet the Nov. 1 deadline for such changes.

Council claws back exemptions

By Steve Kidd - Penticton Western News Updated: October 09, 2013 11:39 AM
Places of worship in Penticton don’t have to worry about their tax exemption from the city for the next three years, thanks to changes approved by city council Monday evening. But a half-dozen community groups, some of which were previously on the tax-exempt list, including the Salvation Army Food Bank, didn’t make the cut this year. Mayor Garry Litke said the city is being generous in the tax exemptions, but the tax breaks aren’t guaranteed to be there forever. “Not only should we be warning that there could, at some point, be a reduction of that generosity, but in the meantime (they should) celebrate how generous this city actually is,” said Litke. “The receivers of this shouldn’t take it as a given or as a right, it is actually a gift from the city to them.” Including churches, council approved municipal tax exemptions totalling $392,855 for a variety of community groups and non-profit organizations, ranging from the SS Sicamous Restoration Society to the Royal Canadian Legion. Churches won’t have to reapply for three years — all that is required to maintain their tax exempt status is that someone from the church visits city hall annually to sign a declaration that conditions haven’t changed, and they are still operating as a church. Coun. Helena Konanz was surprised at some of the groups on the list to be denied tax exemption. “Their working capital is excessive, over $100,000,” said Deb Clipperton, acting revenue supervisor, confirming that the South Okanagan Brain Injury Society, the Salvation Army’s food bank and thrift stores, along with the Senior’s Drop-in Centre had all been in last year’s approved group. In 2009, council introduced a new policy to reduce tax exemptions for non-profit organizations with over $50,000 working capital, but ended up backing away from it after the controversial policy drew public concern. Council also rescinded a similar decision in 2011 after 10 organizations appealed. Though an additional $15,000 in taxes would make a big difference in their charitable work, Major Dave Sobool of the Salvation Army wasn’t shocked by the denial of their exemption request, and expects the group will appeal. “Exactly how we are going to approach that, I am going to have to contact our divisional headquarters,” he said. “It’s not an abnormal thing to happen in this world, cities have been doing that all over the place.” Konanz questioned the arbitrary cut-off, pointing out that even nonprofits need to have working capital. Coun. John Vassilaki took the opposite tack, agreeing with Litke and suggesting Penticton has a higher tax-exempt roll than other Okanagan cities. “We are probably double or triple of what Kelowna gives out,” said Vassilaki. “We should prepare these folks for the shock that might come or might not come a year or two down the road.” However, City of Kelowna budgets show $4 million in tax exemptions scheduled for 2014, about 3.9 per cent of the $103.7 million they collected in municipal taxes last year. By comparison, Penticton’s $392,855 is about 1.5 per cent of the city’s $25.92 million 2013 tax roll. “I think this is a partnership that is an investment in social issues. In that regard, I know these churches all have programs for families in need, families in crisis. They help in numerous ways,” said Coun. Judy Sentes. “While it is an enormous dollar amount we gift, I think the community recognizes there is a huge partnership that gives back to those that are in need.” Council voted unanimously to approve the staff  recommendations as is, though Coun. Andrew Jakubeit pointed out the organizations that were denied have to lodge their appeal soon. “They still have our next meeting to ask for reconsideration, because by Oct. 31, we have to send in these exemptions. If they came to us in November, we couldn’t grant them exemption,” said Jakubeit.

Council supports BC Housing request

by Melissa Ligertwood - Castanet Apr 22, 2013 / 5:12 pm
Vernon City Council has agreed to support a rezoning application for a BC Housing project on 24 Street. Vernon Viridian, which will be managed by Kindale Developmental Association, is a $2.85M affordable housing development that will provide up to 20 units for families, singles and people with disabilities in the community. The development was originally planned as 12 townhouse units, but BC Housing wants to redesign the space in order to incorporate another eight bachelor units. The request before council seeks to rezone the property from RM1, row housing, to RH1, low-rise apartments, along with variance requests on front yard setbacks and a reduction in the required parking stalls. If the proposed changes are permitted, the development will have four larger two-bed, two-bath townhomes, and the remaining eight units would be broken down into one-bedroom upper floor units with separate bachelor suites at ground level. Councillor Juliette Cunningham, who visited the development at an open house back in March, spoke in favour of the proposed changes. “I’ve been to the site and it’s a great project. The units are small but designed really well,” said Cunningham. Although parking would be reduced from 27 to 18 stalls, Mayor Sawatsky was quick to point out that, out of the seven applications received for space at the Viridian, none have a vehicle. The matter is scheduled for public hearing on May 27.  

Penticton eases up on tax exemptions

By Steve Kidd - Penticton Western News Published: April 06, 2013 6:00 AM

Penticton City Council was unanimous in their desire to have to deal with permissive tax exemptions less often.  Starting this year, places of worship, hospitals and schools will only need to apply for a municipal tax exemption on a three-year cycle, rather than the annual request they now have to make. “It has been a source of tension year after year, so I am happy we are moving to a situation where we will only have to look at it every three years,” said Coun. Garry Litke. In 2009, council introduced a new policy to reduce land tax exemptions for non-profit organizations with over $50,000 working capital, but ended up backing away from it after the controversial policy drew public concern. Council also rescinded a similar decision in 2011 after 10 organizations appealed. Angela Campbell, the city’s revenue supervisor, chose three years as a starting point for the new policy, but said the community charter allows up to a 10-year span. “Because the city of Penticton sees a lot more changes in the property and the use of the land, three years seemed to be a reasonable start to a cycle, to make sure it wasn’t going to be a large amount of work,” said Campbell. Mayor Dan Ashton, however, jokingly wondered if Campbell might have other motives for a three-year cycle. “I think she is doing every three years just to break every new council in, just to let them know the pain,” said Ashton. Campbell explained the new policy does not apply to all nonprofits. “Any nonprofit can apply for permissive tax exemption. I am only recommending this three-year cycle for places of worship, the schools and the hospital. Those are the ones that tended to be granted an exception, regardless of their financial hardship,” said Campbell. Qualifying institutions won’t need to fill out the extensive application each year, which Campbell said would result in cost savings for both the institution and the city. “The intent is to save work for the organizations themselves. It is a long application, they do have to get a lot of paperwork to us, their financial statements, their proof that they are in good standing,” said Campbell. “It is a time consuming thing for them, as well as for the city itself. It is a great deal of time on my part to put the information together for council to review.” Institutions will have to fill out an annual certification there have been no changes to the property or its used that would affect the permits of exemption.

Finance Committee Monday 10 AM

• Agenda Package - Monday, February 4, 2013 - 10:00am

Don Quixote Note: The Permissive Tax exemption Policy will be examined as a suggestion from the budget debates and the Core Service Review indicates that this is a Revenue Opportunity. Figures used in budget are that a 10% reduction would save $59,000. Total 2013 exemptions from Pages 51 and 52 in the agenda package total $600,349.95 so the 10% reduction could actually save 60,035.
Any Savings would be effective in 2014. 

Breakdown of 2013 Permissive Tax exemption

This is a finance committee meeting of the City of Vernon and is open to the public and Media.
10 AM in the Kalamalka Lake Room.

Okanagan Boys and Girls Club receives tax exemption

By Roger Knox - Vernon Morning Star Published: October 21, 2012 1:00 AM
Depending on whether they get their assessment changed, the Okanagan Boys and Girls Club are getting a tax break from the Township of Spallumcheen. The township passed its 2013 permissive tax exemption bylaw which will exempt the Okanagan Boys and Girls Club to the extent of $500,000. Their current assessment value is $1.1 million based on a Class 6 Business Other assessment from the B.C. Assessment Authority. “If nothing changed for 2013, they would pay taxes on $600,000,” said Spallumcheen acting administrator and chief financial officer Brian Freeman-Marsh. “They are trying to get, No. 1, the tax type changed to Class 1 (residential) and Class 9 (farm), which is what it was, I believe, in 2009, and they’re trying to reduce the value.” The O’Keefe Ranch also received exemption on almost all of its properties, save for the restaurant. Other Spallumcheen organizations receiving full permissive tax exemptions for 2013 are the Seventh Day Adventist Church, which also operates the North Okanagan Junior Academy, the Monastery of the Carmel of St. Joseph, Caravan Farm Theatre and Hullcar and Deep Creek Hall Society.

Schubert Centre Lands City Grant

Photo: Schubert Centre

Written by Peter McIntyre  107.5 KISFM Tuesday, 10 April 2012 19:32 
  A Vernon seniors facility will be getting some financial assistance from city council. The Schubert Centre on 30th Avenue is facing a $100,000 debt, and had asked the city for a number of exemptions including taxes and water. Mayor Rob Sawatzky says they've approved a one time grant of 15-thousand dollars. He tells Kiss FM, "And we have recommended to them that they apply for the higher tax exemption classification. They were not getting the full exemption." Sawatzky says applying in the social services category will give the centre a 100 percent exemption from city taxes, saving the facility up to an extra five thousand dollars annually. The centre will also be encouraged to seek assistance from the business community on how to improve their business model.

No decision on Schubert Centre assistance

By Richard Rolke - Vernon Morning Star Published: March 26, 2012 4:00 PM

It’s uncertain if Vernon taxpayers will help a seniors’ group overcome financial challenges. Instead of agreeing to a request to exempt the Schubert Centre from water, sewage and property taxes annually, council has decided to meet with the non-profit organization. “Reading all of the information they provided, they’re looking for some kind of dialogue,” said Coun. Patrick Nicol. “We might learn something by listening to them.” Financial problems forced the Schubert Centre to seek assistance in 2009 and at that time, the city agreed to $15,000 annually for three years. However, that funding was considered a grant and was not linked to the waiving of utilities or property taxes. “It was supposed to be a one-time fix,” said Coun. Bob Spiers. There is concern among city staff that waiving utility fees could establish a precedent. “We would open up a lot of discussion among other organizations,” said Kevin Bertles, finance manager, of other groups possibly seeking similar support. The centre has a debt load in excess of $100,000, and it is largely a result of a loan related to kitchen renovations, provincial bingo revenue being cancelled and an audit leading to $100,000 in GST being paid to the federal government in 2006. Schubert Centre officials are hopeful the city will participate. “We realize these are difficult times but we feel strongly, however, that the Schubert Centre must continue to play its critical role in the delivery of important programs for all seniors that live in our community,” said John Toporchak, society president, in a letter.

Council To Address Smart Meters and Traps //Schubert Centre Seeks Cost Breaks

Written by Peter McIntyre 107.5 KISSFM Monday, 26 March 2012 00:17
  The issue of wildlife traps may capture some debate at Vernon council today. The elected reps will go over a draft motion the city plans to submit to the Union of BC Municipalities. Council wants the provincial agency to lobby Victoria to only allow people with trapping permits or licenses to buy wildlife traps. The city has received numerous letters lately from people concerned about the risk certain body-gripping traps have on wildlife, pets and children. Also at council today, the elected reps will decide what to do with a request for a moratorium on the installation of smart meters. A group called 'Citizens for Safe Technology' gave council a long lists of concerns two weeks ago. That includes health, security and cost issues created by the wireless devices that are being installed in homes and businesses by BC Hydro. Several councillors have said they would like to hear Hydro's side of the story before taking any action.
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Schubert Centre Seeks Cost Breaks

Written by Peter McIntyre  107.5 KISSFM  Monday, 26 March 2012 00:25

Schubert Centre on 30th Avenue

  Officials from Vernon's Schubert Centre are seeking financial assistance from city council. The non profit organization for seniors is asking for an annual exemption for water, sewage and property taxes. The city provided tax breaks three years ago which  President John Toporchak says has helped them continue services for their 1,200 members. He says they need some help as their 25 year old building will likely be needing major expenditures in the coming years. That includes a walk-in freezer, flooring, furnace and roof replacements.

Centre wants city taxes waived

By Richard Rolke - Vernon Morning Star Published: March 25, 2012 1:00 AM
Taxpayers are being asked to waive taxes again for a seniors’ group facing financial uncertainty. Vernon council will consider a request Monday from the Schubert Centre to exempt water, sewage and property taxes annually. “The Schubert Centre provides a really valuable service to the community,” said Mayor Rob Sawatzky. “It will be an interesting council discussion and we will have to put the request in context with everything else we do (financially).” In 2009, the city provided $15,000 annually for three years because of a $162,000 shortfall the Schubert Centre was facing from senior government policies and upgrades to the 30th Avenue facility. The non-profit society currently has a debt load in excess of $100,000. “We realize these are difficult times but we feel strongly, however, that the Schubert Centre must continue to play its critical role in the delivery of important programs for all seniors that live in our community,” said John Toporchak, Schubert Centre president, in a letter. It’s not known what the value of exempting water, sewage and property taxes would be this year. The society’s financial situation first goes back to 2005 when provincial Bingo revenue was discontinued. That was followed by a donation not materializing for kitchen renovation and a bank loan being required. A  Revenue Canada audit led to $100,000 in GST being paid in 2006. “With a declining economy, many of the organizations that the centre does business with on a regular basis have had their budgets cut, which, in turn, have impacted the revenues that sustain us,” said Toporchak. Besides facility rentals, revenue is generated through program and membership fees, the restaurant and catering. A number of actions have been taken to increase cash flow, including increasing membership fees, fundraising, seeking grants and deferring capital projects except for emergencies. Toporchak says the city’s decision to waive property taxes and utility fees in 2009 was beneficial. “This support of the Schubert Centre has gone a long way towards assisting us to be able to continue with our current programs and services to Vernon’s seniors,” he said.

City Grants Churches, Charities Property Tax Exemption

Kate Bouey 105.7 SUNFM 9/26/2011

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Vernon city council is giving dozens of churches, charities and social agencies full or partial property tax exemptions. This is a yearly occurence. Council's financial watchdog Bob Spiers says it amounted to approximately 560-thousand dollars last year and he expects a similar figure this year. The bylaw was given third reading Monday. Meanwhile Spiers says he will pick up his nomination papers for another run at council this week. Spiers says he would like a new council to consider a full audit of the City's expenditures. Spiers tried and failed to convince the current council to approve a financial audit however he hopes to be more persuasive next time.
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Watchdog Sets Sights on Second Term 

by Peter McIntyre 107.5 KISSFM  Monday, 26 September 2011 18:13

All but one of the current Vernon council members intend to seek re-election in November.  Bob Spiers has been 'on the fence', but admitted Monday, he's leaning towards running for a second term.  "I'll probably be picking up my nomination papers sometime this week."  Spiers, council's financial watchdog,  says he would still like to pursue the idea of a core review where all aspects of city spending would be scrutinized, something the current council rejected.  Buffy Baumbrough is the lone council member who doesn't plan to seek re-election. The official nomination period runs from October 4 to the 14th.

Council looks at tax relief for groups

Bruce Walkinshaw - Penticton Western News Published: July 22, 2010 6:00 PM

It seems Penticton Council will provide some sort of tax relief for at least two of the four community organizations affected by the city’s new-ish permissive tax exemption policy. The policy, which blew in all sorts of controversy for council last year when it prescribed gradual rollbacks of tax exemptions collected on land surrounding applicable churches and charitable organizations, had concerned members from the Elks Club and the local legion at city council’s Monday night meeting. “In 2009 council adopted the permissive tax exemption policy,” city treasurer Doug Leahy explained. “At that point in time the real significant difference between the previous policy and the policy that was adopted was that the policy did not exempt establishments whose major source of revenue was the sale of alcohol from taxation.” Leahy said there are four main service clubs or organizations that are affected by the change in policy: the Annavets, the Eagles, the Elks and the Legion — the latter two of which have been caught fiscally off-guard by the subsequent increase of their 2010 taxes after receiving exemptions in years past.“In 2010 the city provided over $900,000 of permissive tax exemption to non profit organizations,” reported Leahy. “To date the Legion has come forward with a request that council consider exempting their 2010 property taxes. Staff is also aware of the Elks Club who is considering the same appeal. (The) Annavets and Eagles have not yet come forward.”If council did decide to grant an exemption, or partial exemption, Leahy said, the organizations could only begin benefitting from the tax reduction for the 2011 tax cycle. For 2010, he continued, council would have to issue the organizations grants. Currently, the four owe over $34,000 in property taxes, not just for municipal taxes but for school taxes and other levies with the Annavets owing $6,808, the Eagles $8,919, the Elks $8,100 and the Legion $14,547. “Are there any spare funds for these monies? No,” said Leahy. “(A grant) would have to come from our general fund ... something else would have to be deleted.”

Coun. Dan Albas proposed that council rescind the policy for the Legion and the Elks. “This particular policy has caused a lot of consternation in our community,” said Albas. “It is my understanding that (the legion) has not had a sound financial footing for the last few years ... the money will literally have to come out of volunteer efforts and they are probably already at the max.” Albas said that the Legion helps out a lot of organizations throughout the community. “For us to not at least look at recension or at least try to find a way to make it a mutual win-win, I think hurts the community,” he continued. “I think that at the city we owe them better than that. And that if we were to negotiate with them and maybe look at a different formula, I’m sure that there is a middle ground that can be achieved.” Some on council were not keen on completely doing away with the policy because there were other issues that it did a good job addressing. Eventually, only Coun. John Vassilaki ended up voting to kill the policy outright. “I know for a fact that the Legion is having financial problems and they can’t afford to pay $14,000 and that perhaps they might have to shut down because of it,” said Vassilaki.

It was suggested that just because the Annavets and the Eagles had not applied for exemptions, they should not be denied the ability to access them in the future. “We should not be dividing the organizations but ... we should be dividing the functions,” said Garry Litke, asserting that council should consider amending the policy to only exempt the portions of the organization’s buildings that do not sell liquor. “I can’t support a tax exemption for those premises (with liquor licenses) but for the rest of the buildings (used for) social functions or fund raising activities for the good work that they do ... I can support that.” Council voted unanimously to refer the matter to staff for a report to provide exemption options for taxation on liquor sales areas as soon as possible.

NEW $12.2-MILLION AFFORDABLE HOUSING OPENS IN VERNON

VERNON – Families will have better access to affordable housing and child-care services after today’s official opening of Kickwillie Place, a new $12.2-million development, providing 40 units of affordable housing and an onsite child-care facility in Vernon, announced Eric Foster, MLA for Vernon-Monashee. “Our government is committed to providing affordable and appropriate housing to meet the needs of families and individuals in communities across British Columbia,” said Foster. “This new development will benefit our community by providing stable housing and child-care opportunities for people in need.”

The Province provided $11.2 million through the Aboriginal Housing Initiative (AHI) and a $210,000 grant through the Ministry of Children and Family Development (MCFD) for a 16-space multi-age child-care centre. The City of Vernon provided a 60-year lease on the land, valued at $900,000. “Kickwillie Place will give children an opportunity to attend child care in a safe, caring environment, close to home,” said Mary Polak, Minister of Children and Family Development and Minister Responsible for Child Care. “A project like this does more than create child-care spaces – it meets a variety of community needs at once, supports families and demonstrates the value of strong partnerships to accomplish our goals.” “Increasing affordable housing in Vernon is highly supported by our city council,” said Vernon mayor Wayne Lippert. “The City of Vernon is proud to be a partner in this development because building a better life begins with access to stable and affordable housing.”

Vernon Native Housing Society (VNHS) will operate and manage the development. The society was one of the successful proponents following a proposal call for AHI housing developments issued in 2007 in consultation with the Aboriginal Housing Management Association (AHMA). Formed in B.C. in the mid-1990s, AHMA is the only Aboriginal social housing management agency in Canada. “We strive to be innovative leaders who are committed to exploring new ways of providing supportive housing to Aboriginal people in Canada,” said Margaret Pfoh, president of AHMA, “The Aboriginal Housing Initiative provides new resources to create a range of affordable housing options. This development will give Vernon Native Housing Society the ability to help more people in need of affordable housing.”

Penticton council reverses church tax decision

JOHN MOORHOUSE Thursday, October 22, 2009 Penticton Herald

To a roar of approval from an overflow crowd in council chambers Wednesday afternoon, Penticton council backed off its plan to start taxing some churches and non-profit organizations. Mayor Dan Ashton, reading from a prepared statement, said the “considerable input” received from a cross-section of the community played a major role in the decision. “Council has heard your concerns that imposing property taxes at any level on these organizations would cause a hardship and take money away from the good work these organizations are doing in our community,” he said. Ashton said council has decided to change direction and continue to provide 100 per cent tax exemption for these groups again in 2010.

Council then unanimously voted in favour of a revised tax exemption bylaw, which will receive final reading at a special meeting next Wednesday, three days before the Oct. 31 deadline for such taxation issues. The move reverses an Oct. 6 decision, when council voted 4-3 to remove part of the tax exemptions from 24 churches and other organizations, starting with a 10 per cent reduction in 2010. Further reductions would follow in 2011 and 2012. However, dozens of other organizations would retain full tax exemption. One of the criteria for being excluded from the city‘s tax exempt list was whether an organization has more than $50,000 in working capital.
This prompted a storm of protest from church leaders and others in the community who sent a flurry of letters to City Hall and local newspapers.

Retired minister Rev. Peter O‘Flynn of St. Saviour‘s Anglican Church said Wednesday council‘s reversal of its original decision was definitely welcome news, although he rejected any suggestion that St. Saviour‘s took the lead in the protest. “I think there was a swell from the wider community. It wasn‘t just St. Saviour‘s,” he said. “I think it‘s a desire to be that kind of community that supports and cares for those who are less fortunate.” O‘Flynn said he is unaware of any other community which taxes churches. He noted St. Saviour‘s paid full taxes on its former rectory. It has since sold the building and the current minister must pay taxes on his own home. Former city councillor Randy Manuel, a member of the St. Saviour‘s congregation, said he was surprised that council had considered the idea in the first place. “I was surprised that it went this far and that they didn‘t see this sort of reaction coming on,” he said. Manuel noted the money generated by the church tax would have amounted to about a dollar per every household in Penticton.

Commenting afterwards, Ashton admitted the community‘s reaction was the key that caused council to change its mind after launching the tax exemption review in May. “You have to listen to your constituents,” he said. “It was brought up about what these agencies - not only the churches but also the non-profits - do for the community.” The mayor added although the tax exemption is only for 2010, such bylaws must be adopted annually as part of the city‘s budget-taxation process.

Chamber denied tax exemption status

by Wayne Moore - Oct 20, 2009 Castanet:

The Kelowna Chamber of Commerce was one of 13 businesses and not-for-profit organizations denied tax exemption status by the City of Kelowna. Council Monday approved about $3.1 million in municipal tax exemptions for organizations who meet the city's specific criteria. Included on the list are 5 new organizations, including the John Howard Society supportive housing complex on St. Paul Street, Kelowna Alzheimer Society of B.C. on Bernard Avenue, B.C. Conference of Mennonite Brethren Churches on Hwy 33, Aberdeen Hall Property Society on Academy Way and the new H2O Aquatic Centre.

According to Revenue Manager, George King, the Chamber of Commerce was denied an exemption because "the nature of the organization does not meet the criteria outlined outlined in the Permissive Tax Exemption Policy 327 Schedules A through I." Another 21 organizations will pay 80 per cent of their allotted tax bill as they find themselves in the final year of a five year phase out schedule. The phase out schedule was adopted in 2006 after council amended the Permissive Tax Exemption Policy which provided context to the eligibility criteria.

However, as was noted by several councillors, that $3.1 million in exemptions ends up being spread among the entire tax base. "When we give exemptions, we are simply shifting costs to other taxpayers and everybody does good things, but everybody can't be exempt from taxes because we all need services," says Councillor Robert Hobson. "In addition to the over $3.1 million that we forgive for organizations who do good works, we provide a whole range of additional grants of various kinds to other organizations who do good works. You add all those up and that's quite a significant contribution."

Meantime, Council also decided to re-visit the portion of the policy which limits tax exemptions to supportive housing providers who restrict the length of stay to under two years. "What I'm hearing from some of the housing providers," says Councillor Michele Rule, "is that the two year period is a number we picked but is not necessarily the magic number for when someone doesn't need supportive housing anymore." "There is quite a bit of concern around that." Councillor Angela Reid agreed, stating there are some jurisdictions where some housing is provided for life long use. "I think we need to revisit this," says Reid. The motion passed unanimously.

Opposition mounts to city’s church tax plan

JOHN MOORHOUSE 10/19/2009 Penticton Herald:

While opposition begins to swell against Penticton city council‘s proposal to tax certain churches and non-profit groups, a special meeting to address the issue will be held later this week. Mayor Dan Ashton said because of the lengthy agenda for tonight‘s council meeting, a separate session will be held later this week. Details are expected to announced this evening. At its Oct. 6 meeting, council voted narrowly in favour of removing part of the tax exemptions from 24 churches and other organizations, starting with a 10 per cent reduction in 2010. Similar reductions will follow in 2011 and 2012. One of the criteria for being excluded from the city‘s tax exempt list is whether an organization has more than $50,000 in working capital. Organizations with less cash-on-hand will continue to be tax-exempt. Ashton said this week‘s special meeting will allow more time for people to discuss the proposal further.

“The process will be as open and as transparent as anything council has ever done during our term,” he said. A separate meeting was held last week between Coun. Dan Albas, three clergy members and senior city staff. Commenting afterwards, Tom Siddon who serves as a warden (layman trustee) with St. Saviour‘s Anglican Church, said opposition to the proposal is building substantially. “There‘s a lot of correspondence and outcry coming into City Hall,” he said. “A large number of people want a chance to have a say. There was no consultation.” Siddon said the $50,000 figure was arbitrarily chosen and wonders why churches were told to disclose all their financial assets, rather than just their income and expenses. He noted only 37 per cent of St. Saviour‘s property at Winnipeg Street and Orchard Avenue is covered by the church and its Ellis Chapel. The balance which the city wants to tax includes the Soupateria and meeting rooms for such organizations as Alcoholics Anonymous and the Community Outreach Centre. “As much as you wouldn‘t tax city property, you shouldn‘t tax church properties that are being used for the public good,” Siddon said. “I think the principle is wrong. These are not commercial businesses or private residential properties.” Ted Makar, a member of the Penticton United Church building committee, said his opposition to the tax plan extends beyond the church itself. “It‘s not just the churches. I think the whole idea of taxing all these organizations, that are there for everyone‘s good, really bothers me,” he said.

Meanwhile, Ashton said many people misunderstand what council is trying to do. He personally feels those churches which own rental homes or a rental parking lot, for example, should pay property tax on that portion of their property. “I don‘t have an issue with taxing buildings which are used for other purposes to generate revenue,” Ashton said. “But I have no intention of looking at taxing a church or a church hall.” Ashton added this was not a sudden decision. Council first directed city staff to look at its tax exemption bylaws in May. Any final decision will come after council has heard from affected organizations.

Kelowna churches safe from tax man

Wayne Moore - Oct 11, 2009 CASTANET:

It would appear the City of Kelowna will not go down the same road as Penticton when it comes to taxing churches and other non-profit organizations. Earlier this week, Penticton announced it would add 24 churches and non-profit groups to the tax rolls. Those groups were previously exempt from municipal taxation.

Municipalities determine on a year-to-year basis which organizations will be tax-exempt. Those decisions must be made prior to October 31. Kelowna's finance department will present its yearly report to council when it meets next October 19. While he won't divulge exactly what is in the report, Financial Services Director Keith Grayston says there are no plans to introduce taxation to churches. "I don't want to get into a discussion about what is or isn't on that at this time because council hasn't seen anything yet, but we're not planning to go back to churches and charge them," says Grayston. Church buildings and the footprint of those buildings are automatically tax exempt. "We don't have any ability to change that," added Grayston. "The land outside of the footprint is what the city exempts. We're not, at this stage, planning to not-exempt that. We would continue with the status quo. Grayston says while it is not something being contemplated now, it could still come up in the future.

Penticton taxpayers are already facing a minimum 2.6 per cent tax increase to pay for $23M in upgrades to the Penticton Community Centre Pool announced last month.
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Don Quixote Note: In Vernon :

• Tax Exemption Package - 56Kb

Tax Exemptions – Permissive
PLACES OF WORSHIP:
Where the church property is owned by, or on behalf of a recognized church, the land surrounding the church building may be exempted to a maximum of seven (7) times the area of the church building. Manses, including land equivalent to a normal sized City lot, are not exempt from taxation.

A List of Permissive Tax exemption was in today's Morning Star.