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limprovements

How local improvements affect your property and your taxes.

calgary.ca call 3-1-1

Local improvements

IntroductionThis brochure explains how local improvements affect

your property and your taxes.

Table of contents

Defining local improvements . . . . . . . . . . . 2

Governing local improvements . . . . . . . . . . . 2

Initiating local improvements . . . . . . . . . . . 2

What regular taxes cover . . . . . . . . . . . . . . 2

Reasons for local improvements . . . . . . . . . . 3

Requesting a local improvement . . . . . . . . . . 4

Petitioning against a local improvement . . . . . . 5

Assessing a local improvement . . . . . . . . . . . 6

Assessing residential properties . . . . . . . . . . . 6

Assessing non-residential properties . . . . . . . . 10

How is my cost determined? . . . . . . . . . . . 10

Other assessment methods . . . . . . . . . . . . . 11

Paying for local improvements . . . . . . . . . . . 12

Disagreeing with my assessment . . . . . . . . . . 13

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Defining local improvementsLocal improvements are construction projects upgrading or improving infrastructure in residential, commercial and industrial areas. Examples include street or lane paving, driveway crossing construction, new or replacement sidewalk, curb and gutter, as well as street lighting.

Governing local improvementsThe Municipal Government Act provides provincial statutory guidelines for the administration of local improvements.

Initiating local improvementsProperty owners or The City of Calgary can initiate improvements. In either case, a Notice of Intention to Undertake a Local Improvement is sent to affected property owners by The City. This indicates the type of work proposed and the estimated cost to the property owner.

What regular taxes coverRegular taxes are used to finance City operations and maintain existing infrastructure, snow and ice control, sweeping and essential services such as Police, E.M.S and Fire.

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Reasons for local improvementsLocal improvements are initiated for several reasons.As part of an on-going program, all sidewalks, curbs and gutters in older communities are inspected and ranked on a priority list based on their condition. Each year, The City initiates replacement projects based on this list.

Local improvements are also identified after The City receives public concerns about a road, sidewalk, curb or gutter.

In addition, The City works with business revitalization zones, community associations and other groups to identify improvements in specific areas, like downtown malls and streetscape improvement projects. When The City initiates a local improvement project, the property owners and City Council ultimately decide whether the project will be constructed.

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Requesting a local improvement1. Obtain a petition package including a petition form

and map, by calling The City of Calgary Operations Centre at 3-1-1. Out of town call 403-268-2489 or email us at ccweb@calgary.ca.

2. To be valid, the petition form must be signed by two-thirds of the affected property owners who represent at least one-half the total assessment of the affected area, according to the last revised assessment roll. All signatures must be obtained within a 60-day period, in accordance to provisions in the Municipal Government Act.

3. The completed petition form, affidavit and statement of witness must be returned to The City as indicated in the package.

4. The affected property owners are notified in writing whether or not the petition is valid. When a valid petition is received, the proposed project is included in the next available group of local improvements. Affected property owners are notified of The City’s intention to undertake a local improvement.

Note: The City normally processes two groups of local improvement projects each year. The first group is scheduled for Council approval prior to the beginning of the construction season. The second is scheduled for Council’s approval in mid-summer. Depending on the amount of work and weather conditions throughout the construction season, projects in the second group may be completed by the end of the construction season. It takes a minimum of four months to process a group of local improvement projects. This means petitions must be received by The City before the end of March to enable project approval in the current year. As outlined above, this does not mean projects will be constructed in the current year. Petitions for projects received after March are included in the first group of local improvement projects the following year.

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Petitioning against a local improvement1. A petition package must be obtained from The City.

See “Requesting a local improvement,” number one.2. To be valid, the petition form must be signed by two-

thirds of the affected property owners who represent at least one-half the total assessment of the affected area, according to the last revised assessment roll.

3. The completed petition form, affidavit and statement of witness must be returned to The City within 30 days of the mailing date of the Notice of Intention to Undertake a Local Improvement.

4. The affected property owners are notified in writing whether or not the petition is valid.

5. If the petition against the proposed local improvement is valid, The City cannot proceed with the proposed improvement. The City deletes the local improvement from the Local Improvement Bylaw and advises City Council of the valid petition.

6. If the petition against the proposed local improvement is invalid, City Council is advised of the reason and then decides if the proposed local improvement is deleted from the Local Improvement Bylaw.

7. Affected property owners will be notified in writing of Council’s decision.

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Assessing a local improvementProperties benefiting from a local improvement are assessed in a fair and equitable manner, according to provisions in the Municipal Government Act. The cost of a local improvement may be assessed against• properties that abut the work• properties that don’t abut the work but benefit from it• both of the above.NOTE: No properties are exempt from local improvements. City-owned properties are assessed in the same manner as privately owned properties.

Assessing residential propertiesProperties abutting a local improvement are assessed based on assessable property frontage. In most cases, assessable frontage is the same as actual frontage.

Frontage assessment

Properties abutting a local improvement “front” the work. (Figure A illustrates a frontage assessment.)Properties 25 through 31 are all charged for the local improvement based on an assessable frontage of 15 metres.

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Figure A

Each property would be charged:Rate per metre x 15 metres = $____.

In the case of irregularly shaped lots (where the sides are not parallel), the following formula is used to determine assessed frontage:

Longest width - shortest width x 35% + shortest widthThis formula ensures that all properties are assessed equitably.Property 15 in Figure B is an example of how this formula would apply.

28 - 9 = 19 x 35% = 6.65 + 9 = 15.65mRate per metre x 15.65 = $____

Figure B

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Flankage assessment

For properties benefiting from the local improvement, but not bordering or fronting the work, assessments are based on 26.5 per cent of the property’s assessable frontage. This is called a flankage assessment.Flankage assessments may apply in cases of road paving and the construction of new curb and gutter, and/or sidewalk where none previously existed.The 26.5 per cent rate, as approved by Council, ensures equitable cost distribution among all benefiting property owners. Flankage is assessed from one end of the block to the other, or to a maximum distance of 305 metres.Figures C, D and E illustrate flankage assessments.

Figure C

Properties 2 through 8 (Figure C) would each be charged based on 26.5 per cent of the assessable frontage of 15 metres.

ExampleEach property would be charged:

Rate per metre x 15 metres x 26.5% = $__.

Figure D

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In some instances, properties are assessed for both frontage and flankage. In Figure D, properties 12 through 18 would be charged for local improvement A, based on an assessable frontage of 15 metres. Each property would also be charged flankage for local improvement B, based on 26.5 per cent of assessable frontage.

ExampleEach property would be charged:

Local improvement A Rate per metre x 15 metres = $__. PLUS Local improvement B Rate per metre x 15 metres x 26.5% = $__.

Figure E

It’s also possible for a property to be assessed two flankage charges as in Figure E. Two flankage charges would be applied to properties 1 through 7, one each for local improvement A and local improvement B. Both improvements border each end of the block. Each charge would be based on 26.5 per cent of the assessable frontage.

ExampleEach property would be charged:

Local improvement A Rate per metre x 15 metres x 26.5% = $__.PLUS Local improvement B Rate per metre x 15 metres x 26.5% = $__.

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Assessing non-residential propertiesNon-residential property assessments are based on the length of property abutting the local improvement.

Figure F:

Lots 4 to 7 would be charged for 15 metres, and lot 1 charged 30 metres. No flankage would be charged.

How is my cost determined?The cost assessed to the property owners is calculated in one of two ways.Uniform tax rate

For common types of residential local improvements like lane paving and sidewalks, uniform tax rates for each type of improvement are approved by City Council each year. The cost for a property owner is calculated by multiplying the property’s assessable length by the uniform tax rate.

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Annual cost

Other types of improvements, without uniform tax rates, are assessed on the actual cost of the work. To calculate the cost per metre for the project, the total cost of a project is divided by the total assessable length of the project. The cost for each property is then calculated by multiplying its assessable length by the cost per metre.

ExampleFor project costs of $40,000 and total assessable length of 304.8 metres:

Cost per metre = $40,000 ÷ 304.8 = $131.23.For a 15 metre lot, cost would be: 15 x $131.23 = $1968.45.

Other assessment methodsAssessments are also based on each parcel of land or each unit of area.

Examples:A local improvement of $10,000 may affect 100 parcels of land; the cost to each parcel would be:

$10,000 ÷ 100 = $100/parcel.A local improvement of $100,000 may affect 20 parcels with a total area of 100 hectares.

Cost: $100,000 ÷ 100 = $1000/hectare.For a 5 hectare parcel, total cost would be:5 x $1,000 = $5,000.

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Paying for local improvements Each property owner has two options for payment once construction is completed.

A. a one time payment of the full levy (no interest is included)B. annual payments that are included in your property tax

bill for the term of the bylaw (interest is included)

In the year following construction you, as an affected property owner will be mailed a Local Improvement Assessment Notice and a Payout Notice.The Assessment Notice provides you with details, i.e. total assessed size/length, term and interest rate. Note: interest rates are fixed for the term of the bylaw.The Payout Notice provides the total cost of the project, as well as the amount for you to pay. If this payment is made, no interest charges are applied. If you choose not to make this payment, the charges are automatically transferred annually to your property tax bill.You may request a payout balance at any time during the amortized period. Interest charges are included up to that year only.Note: Local improvement levies can be paid out in full at any time during the amortization period. Once paid, the interest charges are applied up to that year only. The interest rate is fixed for the period that the local improvement is amortized.

Example #1:If your lane is paved and your property has an assessable frontage of 15 metres, and the uniform tax rate per assessable metre is $175.00, then the total payout cost would be:

15 metres x $175.00 = $2,625.00.If amortized at 51/4 per cent over 15 years, the annual charge, including interest, would be $17.15 per metre. The cost would then be:

15 metres x $17.15 = $257.25 per yearfor 15 years or a total of $3,858.75.

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Example #2:For a double-driveway crossing improvement the total cost of the project is $2,300.00. This is the total payout amount.If amortized at 51⁄4 per cent over 15 years, the annual charge would be $225.35. The total cost over 15 years would be $3,380.25.

Disagreeing with my assessmentAfter receiving the Local Improvement Assessment Notice, property owners can appeal to the Assessment Review Board in the same manner as they would appeal their property assessment.Items for appeal include:• incorrect assessable frontages• incorrect owners assessed• incorrect calculationsIn many cases, assessment complaints can be resolved without going through the appeal process. For this reason, property owners should contact Local Improvement by email at localim@calgary.ca, or by calling 3-1-1 to discuss the assessment before lodging a complaint. City representatives meet with the property owner to explain the assessment and review the complaint. Resolving complaints in this manner saves time and expenses for the property owner and The City.Complaints about a local improvement assessment must be made within one year of the notice. The uniform cost rates cannot be appealed.

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For further information, please contact The City of Calgary Roads, Local Improvement

In Calgary, call 3-1-1

Outside Calgary, phone 403-268-2489

Email: ccweb@calgary.ca

For more information: calgary.ca/roads

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calgary.ca call 3-1-1