Bylaw No. 1020, 2022-2026 Financial Plan Bylaw

TOWN OF PRINCETON

BYLAW 1020, 2022

FIVE YEAR FINANCIAL PLAN BYLAW 2022 - 2026

A bylaw to adopt the Financial Plan for the years 2022-2026

WHEREAS Section 165 of the Community Charter requires the Council to prepare and adopt a Financial Plan for the five year period for the years 2022 to 2026; NOW THEREFORE, the Council of the Town of Princeton, in open meeting assembled, enacts as follows:

1. That this Bylaw be cited for all purposes as the “Town of Princeton Financial Plan

Bylaw No. 1020, 2021.

2. Schedules “A”, “B”, “C”, “D”, and “E” attached hereto and made part of the Bylaw,

is hereby adopted and is the Financial Plan of the Town of Princeton, for the years ending December 31, 2022 to December 31, 2026

3. The Town of Princeton Financial Plan Bylaw 2021-2025 No. 995, 2021 is hereby

repealed.

4. The Town of Princeton Financial Plan Bylaw Amendment 1 2021 -2025 No. 1001,

2021 is hereby repealed.

5. The Town of Princeton Financial Plan Bylaw Amendment 2 2021-2025 No. 1008,

2021 is hereby repealed.

6. The Town of Princeton Financial Plan Bylaw Amendment 3 2021 -2025 No. 1023,

2021 is hereby repealed. READ A FIRST TIME this 7th day of February 2022 READ A SECOND TIME this 7th day of February 2022 REFERED TO A PERIOD OF PUBLIC CONSULTATION notices placed in the Similkameen Spotlight on March 10th, 2022, and March 17th, 2022. READ A THIRD TIME AS AMENDED this 21st day of March 2022 ADOPTED this 4th day of April 2022

Mayor Spencer Coyne CAO Lyle Thomas Original signed by Mayor Coyne Original signed by CAO Thomas Schedule “A”

TOWN OF PRINCETON

TAX RATE POLICY 2019

POLICY STATEMENT

The overall objective of the property tax rate policy is to achieve fairness and equity for all tax payers and provide a stable and competitive business environment.

The objectives of the property tax rate policy are to:

• Encourage reserves as a savings for future services; • make Princeton an attractive municipality in which to do business; and • keep residential property tax rates competitive to other municipalities in our region.

Council is committed to ensuring the future prosperity of our Town by ensuring capital funds are available in the future to afford necessary refurbishment and/or replacement of infrastructure.

To attract and retain both commercial and industrial enterprises, Council is committed to maintaining a competitive tax rate system so that commercial and industrial enterprises are paying their fair share of both capital and operating costs, but not more than a business elsewhere in a comparable municipality.

Council will work to keep residential taxes affordable in the Town of Princeton. Princeton’s residential property tax rate must remain competitive with comparable municipalities in the region. Dependence on taxpayer-funded revenues or reserves can be achieved by ensuring that the maximum amount of grants from other levels of government are investigated and/or secured before proceeding on capital projects.

The Town of Princeton is on the cusp of a positive growth curve. Consideration must be made to ensure the reserve amounts retained by the Town each year reflect the continued cost to maintain existing infrastructure. The goal of the financial plan is to retain at minimum the replacement cost of the capital assets of the town. By maintaining this standard, Council is working to ensure that there are enough reserves to replace infrastructure as it requires replacement.

BACKGROUND:

The system of property taxation provides a stable and consistent source of revenue for many services that are difficult or undesirable to fund on a user-pay basis. These include services such as fire protection, bylaw enforcement, libraries, street lighting and infrastructure. For these reasons, property value taxation will continue to be the primary source of municipal revenue.

Many municipal services, such as water and sewer usage, can be measured and charged for on a user-pay basis. This basis attempts to fairly apportion the value of a municipal service to those who make use of it. User fees and charges will continue to form the second largest portion of planned revenue. Council will perform regular reviews of revenue generating areas for appropriate application of rate increases and ensure utilities operate as self-supporting enterprise funds.

PERMISSIVE TAX EXEMPTIONS

Council believes that the Permissive Tax Exemption is an appropriate way to recognize the value of the services provided to the community by non-profit organizations. Council will consider permissive tax exemptions annually. All applications for permissive tax exemptions will be reviewed in accordance with the current Permissive Tax Exemption Policy. Permissive tax Exemptions will be reviewed to ensure that the organization and property still meets the criteria established by Council.

Schedule “B”

TOWN OF PRINCETON

FIVE YEAR CONSOLIDATED FINANCIAL PLAN 2022 – 2026

(in thousands of dollars)

REVENUES 2022 2023 2024 2025 2026

Municipal Taxation 3,378 3,740 4,151 4,610 5,145 Grants-in-Lieu 103 105 109 113 122 Parcel Tax 37 371 371 371 371 Federal and Provincial Grants 25,495 4,120 2,829 2,843 2,687 Regional District Contributions 789 590 1,657 590 590 Sale of Services 1,825 1,878 1,932 1,999 2,046 Licenses, Permits and Fees 137 141 145 149 153 Penalties and Interest on Taxes 40 40 40 40 40 Return on Investments 1,846 512 663 963 314 Sundry 3,209 957 942 953 964 Proceeds from Borrowing 5,490 1,569 2,266 600 600 Total Revenues 42,349 14,023 15,105 13,231 13,032

EXPENSES 2022 2023 2024 2025 2026

Capital Expenses 32,076 6,775 6,298 3,414 2,967 General Government Services 952 945 969 1,000 1,061 Discretionary Grants 599 45 45 45 45 Protective Services 240 245 291 298 305 Emergency Program 175 175 176 177 178 Transit Services 115 115 115 115 115 Economic Development 413 417 424 430 441 Visitor Information Centre 192 196 205 209 216 Public Works 1,900 1,966 2,039 2,111 2,184 Airport 38 41 44 47 50 Parks 200 206 212 219 225 Waste Management 840 865 891 917 944 Cemetery Services 46 49 50 51 52 Recreation / Leisure Services 1,241 1,273 1,305 1,341 1,379 Water 620 654 671 690 704 Sewer 365 377 392 400 409 Flood Mitigation 2,100 0 0 0 0 Total Expenses 42,112 14,344 14,127 11,464 11,275

(continued on next page)

NET CHANGE IN RESERVE FUNDS 2022 2023 2024 2025 2026

Net Change in Paving Reserve (154) 0 0 0 0 Net change In Parkland Reserve (73) 0 0 0 0 Net change in Future Amenity Reserve 73 300 300 447 483 Net change in Airport Reserve (155) 0 0 0 0 Net change in Capital Works Reserve (89) 3 3 3 3 Net change in Infrastructure Reserve 23 24 25 26 27 Net change in Land Sales Reserve (315) (1,380) 0 0 0 Net change in Arena Reserve (62) 0 0 0 0 Net change in Water Reserve (78) (41) (140) (134) (122) Net change in Sewer Reserve 3 115 115 115 115 Net change in Development Cost Charge Reserve 500 500 500 500 500 Net Change in Fire Department Capital Reserve 555 121 (533) 0 0 Net change in Unrestricted Surplus Reserve 9 37 708 810 751 Total Net Change in Reserve Funds 237 (321) 978 1,767 1,757 Difference 0 0 0 0 0

Planned Sources of Revenue, 2022

Source of Revenue % of Total Revenue Dollar Value (in Thousands $) Municipal Tax Revenue 8.3 % 3,518 Government Grants 60.2 % 25,495 Direct Operating Grants 1.9 % 789 Sales of Services 4.6 % 1,962 Proceeds from Borrowing 13.0 % 5,490 Other, Including Investments 12.0 % 5,095 Total 100.0 % 42,349

Planned Distribution of Municipal Taxation for 2022

Property Class % of Total Property Taxation Dollar Value Residential (1) 36.7 % $1,214,477 Utilities (2) 1.4 % $48,433 Heavy Industry (4) 38.3 % $1,277,336 Light Industry (5) 8.0 % $275,517 Business and Other (6) 15.5 % $532,825 Recreation or Non-Profit (8) 0.1 % $2,412 Total 100.0 % $3,378,000

Schedule “C” Capital Expenditures and Sources of Funds

Note: As per the purchasing policy of the Town of Princeton (Policy No. 005-2012),

section 7(b)(i), the capital plan is created as listed in Schedule “B” of this bylaw and

these items are deemed supplemental to the single budget line item in Schedule “B”. Capital projects planned for the period from 2023 to 2026 are conceptual in nature and included on Schedule “B” as line items only and will be expanded upon in detail in future financial plans.

Capital Items for the Fiscal Year ending December 31, 2022:

Campground Capital Improvements Maximum Amount of Expenditure: $250,000 Department: Recreation & Leisure Services Object: - To install new washroom facilities Source of Funding: Federal Accessibility Grant and Future Amenity Reserve

Bridge Street Park Maximum Amount of Expenditure: $150,000 Department: Parks Object: - To create a new public park space on Bridge Street Source of Funding: Parkland Reserve and Future Amenity Reserve

Caboose Refurbishment Maximum Amount of Expenditure: $30,000 Department: Parks Object: - To renovate and repair the historic train caboose on the Kettle Valley Railroad Trail Source of Funding: General Taxation

Memorial Park Concession Roof Maximum Amount of Expenditure: $50,000 Department: Parks Object: - To replace the roof over the concession area at the ball diamonds in Memorial Park. Source of Funding: 100% from a capital grant from the RDOS, remainder from current year taxation.

Princeton & District Arena Improvement Project Maximum Amount of Expenditure: $1,012,000 Department: Recreation & Leisure Services Object: - To replace the roof at the Princeton & District Arena - To install solar panels on the roof of the Princeton & District Arena that will generate electricity to power the building - To acquire a new ice resurfacing machine and ice edging machine using electrical power - To acquire and install new dehumidification machinery replacing the non- functioning unit Source of Funding: General Taxation, contributions from the Regional District of Okanagan-Similkameen, federal green infrastructure grant funding, and the arena reserve.

Pickleball Court Maximum Amount of Expenditure: $25,000 Department: Parks Object: - To fund a portion of the construction of a pickleball facility in partnership with the Regional District of Okanagan-Similkameen and the Princeton Pickleball Association Source of Funding: General Taxation

New Vehicles / Public Works Equipment Maximum Amount of Expenditure: $670,000 Department: Public Works Object: - To purchase the currently leased skidsteer style piece of equipment for the Public Works department - To purchase a new plow truck - To purchase a new front-end loader Source of Funding: Short-Term Borrowing (Municipal Finance Authority Equipment Purchasing Program)

Slope Stability Study Maximum Amount of Expenditure: $100,000 Department: Public Works Object: - To make repairs to the slope above Vernon Avenue to prevent slope instability Source of Funding: Infrastructure Grant Funding

Airport Lighting Maximum Amount of Expenditure: $155,000 Department: Airport Object: - To install lighting on the runway of the Princeton Airport, allowing night operations. Source of Funding: Airport Reserve Funding

Airport Fuel System Maximum Amount of Expenditure: $40,000 Department: Airport Object: - To replace the fuel distribution system at the Princeton Aerodrome. Source of Funding: Airport Reserve Funding

Second Bench Hillside Trail Maximum Amount of Expenditure: $50,000 Department: Parks Object: - To rebuild the pathway connecting Fenchurch Ave between the second and third bench residential areas. Source of Funding: Current Year Taxation

Pressure Releasing Valves Maximum Amount of Expenditure: $22,000 Department: Water Object: - To replace obsolete and defective valves within the Town’s water system Source of Funding: Water Reserve

Confined Space Study Maximum Amount of Expenditure: $20,000 Department: Water Object: - To investigate current procedures regarding confined spaces in Town water booster stations for safety purposes of Public Works staff Source of Funding: Water reserve

Fire Hydrant Replacement Maximum Amount of Expenditure: $20,000 Department: Public Works Object: - To replace obsolete fire hydrants within Town limits. Source of Funding: General Taxation

Generator – Ponderosa Lift Station Maximum Amount of Expenditure: $38,000 Department: Sewer Object: - To supply and install an emergency generator for sewerage at the Ponderosa Lift Station, preventing possible backflow issues on the third bench residential area Source of Funding: Sewer Reserve

Well 4 Security Upgrades Maximum Amount of Expenditure: $10,000 Department: Water Object: - To supply and install security measures within Well 4 of the Water System discouraging theft and vandalism Source of Funding: Water Reserve

Storm System Study Maximum Amount of Expenditure: $100,000 Department: Public Works Object: - To investigate and find deficiencies in the storm water system in the Downtown area, plan for major repairs in future capital budgets and make minor repairs Source of Funding: Infrastructure Grant Funding

Sanitary Sewer I&I Maximum Amount of Expenditure: $25,000 Department: Public Works Object: - To investigate infiltration of storm water from leaks and non-compliant residential storm water hookups in the sanitary sewer system Source of Funding: General Taxation

Shoring Cage Maximum Amount of Expenditure: $10,000 Department: Public Works Object: - To purchase a shoring cage for excavation work by Public Works Source of Funding: General Taxation

Valve Exerciser Maximum Amount of Expenditure: $25,000 Department: Water Object: - To purchase a piece of equipment to perform routine maintenance of the water system. Source of Funding: Water Reserve

Industrial Park Expansion Maximum Amount of Expenditure: $315,000 Department: General Government Object: - To install services at the Princeton Industrial Park, allowing sales of 5 more folios. Source of Funding: Industrial Park Reserve and Land Sales Reserve

Rocklin Ave & Highway 3 Improvements Maximum Amount of Expenditure: $50,000 Department: Public Works Object: - To make safety improvements to the intersection of Rocklin Avenue and Highway 3. Source of Funding: Current Year Taxation

Pump House Air Conditioning System Maximum Amount of Expenditure: $30,000 Department: Water Object: - To prevent overheating of the Town well water pumps during excessive heat events. Source of Funding: Water Reserve

SCADA Maximum Amount of Expenditure: $70,000 Department: Water Object: - To supply and install a new monitoring system for the Town’s water system and replace the current obsolete SCADA system. Source of Funding: Infrastructure Grant

Culbertson Lift Station Maximum Amount of Expenditure: $685,000 Department: Water Object: - To supply and install a new design, including building and mechanical parts for the machinery at the Culbertson Lift Station. Source of Funding: Borrowed Funds (Short Term becoming Long Term through the Municipal Finance Authority)

Smoke Machine Maximum Amount of Expenditure: $6,000 Department: Sewer Object: - To supply a machine to detect leaks within the Town’s sewerage system. Source of Funding: Sewer Reserve

Hauled Liquid Waste Pit Maximum Amount of Expenditure: $30,000 Department: Sewer Object: - To complete the construction of a fourth liquid waste pit. Source of Funding: Regional District of Okanagan-Similkameen Capital Grant

Manhole Replacement Maximum Amount of Expenditure: $22,000 Department: Sewer Object: - To replace sewer access covers throughout the Town. Source of Funding: General Taxation

Video Inspection Maximum Amount of Expenditure: $63,000 Department: Water Object: - To supply a closed-circuit television inspection equipment system for inspection of the Town’s water system. Source of Funding: Infrastructure Grant

Landfill Scale Software Maximum Amount of Expenditure: $5,000 Department: Waste Management Object: - To supply and install software replacing obsolete scale software at the Princeton Landfill. Source of Funding: General Taxation

Well Monitoring Maximum Amount of Expenditure: $100,000 Department: Water Object: - To supply and install sensors to monitor groundwater pollution at the Princeton Landfill as a requirement of the Provincial Government and/or the Interior Health Authority Source of Funding: Water Reserve

Park Refurbishment/Upgrades Maximum Amount of Expenditure: $25,000 Department: Parks Object: - To upgrade various capital items in parks (playgrounds, fencing) as determined by the infrastructure and Public Works departments. Source of Funding: General Taxation

Paving Program Maximum Amount of Expenditure: $225,000 Department: Public Works Object: - To reconstruct various sidewalks within Town boundaries according to a

schedule as proposed by the Infrastructure and Public Works departments.

Source of Funding: Federal Gas Tax Funding and Paving Reserve

Memorial Park Maximum Amount of Expenditure: $50,000 Department: Recreation & Leisure Services Object: - To study the layout and create a plan for Memorial Park. Source of Funding: Future Amenity Fund

Vehicle Replacements - Flood Maximum Amount of Expenditure: $650,000 Department: Public Works Object: - To replace vehicles damaged in the November 14, 2021 Tulameen River flooding event. Source of Funding: Insurance proceeds, Provincial Grant through Emergency Management BC and the Capital Works Reserve Fund

Building Repair and Replacement Maximum Amount of Expenditure: $2,073,000 Department: Public Works Object: - To replace or repair the Public Works Yard and the Community Services Building that were damaged during the November 14, 2021 Tulameen River flooding event Source of Funding: Insurance proceeds

Fenchurch Lift Station Repairs Maximum Amount of Expenditure: $550,000 Department: Sewer Object: - To repair electrical components and perform an upgrade to bring the site in question to current electrical standards at the Fenchurch Lift Station. This station was damaged during the November 14, 2021 Tulameen River flooding event. Source of Funding: Insurance proceeds, Provincial Grant through Emergency Management BC and the Sewer Reserve Fund

Well System Disinfection and Repair Maximum Amount of Expenditure: $18,000 Department: Water Object: - To disinfect Wells 1 & 2 after infiltration of the Similkameen River during the November 14, 2021 Tulameen River flooding event. Source of Funding: Provincial Grant through Emergency Management BC and the Water Reserve Fund

Diking System Repair Maximum Amount of Expenditure: $1,092,000 Department: Public Works Object: - To complete repairs of the diking system damaged during the November 14,

2021 Tulameen River flooding event.

Source of Funding: Provincial Grant through Emergency Management BC

Directional Drilling Maximum Amount of Expenditure: $570,000 Department: Water Object: - To complete repairs to the water distribution pipes that were destroyed during the November 14, 2021 Tulameen River flooding event. Source of Funding: Provincial Grant through Emergency Management BC and the Water Reserve Fund

SCADA Replacement Maximum Amount of Expenditure: $34,000 Department: Water Object: - To replace the SCADA device that was destroyed at the Public Works Yard during the November 14, 2021 Tulameen River flooding event. Source of Funding: Provincial Grant through Emergency Management BC and the Water Reserve Fund

Road, Water and Sewer Replacement Maximum Amount of Expenditure: $14,000,000 Department: Public Works Object: - To replace all water, sewer and pavement along streets affected by the November 14, 2021 Tulameen River flooding event. Source of Funding: Provincial Grant through Emergency Management BC

Sewer Forcemain Lining Maximum Amount of Expenditure: $673,000 Department: Sewer Object: - To line the sewerage forcemain from the Fenchurch lift station to the sewage lagoons. These lines were partially damaged during the November 14, 2021 Tulameen River flooding event. Source of Funding: Provincial Grant through Emergency Management BC and Borrowed Funds (Short Term becoming Long Term through the Municipal Finance Authority)

Sewer Trunk Main Replacement Maximum Amount of Expenditure: $1,118,000 Department: Sewer Object: - To replace the main trunk sewerage line from the Tulameen River crossing through the downtown area (via a route to be determined by the Public Works Department) to the Fenchurch Sewer Lift Station. Source of Funding: Borrowed Funds (Short Term becoming Long Term through the Municipal Finance Authority)

Well Construction Maximum Amount of Expenditure: $686,000 Department: Water Object: - To design and build a new well, provide for disinfection of the water drawn from the well and connect the well to the current water system. Source of Funding: Borrowed Funds (Short Term becoming Long Term through the Municipal Finance Authority)

Booster Station Construction at Warren and Billiter Maximum Amount of Expenditure: $707,000 Department: Water Object: - To design and build a new booster station to replace the deficient underground facility at Warren and Billter. Source of Funding: Borrowed Funds (Short Term becoming Long Term through the Municipal Finance Authority)

Infrastructure Master Plan Maximum Amount of Expenditure: $100,000 Department: Public Works Object: - To conduct a study and create a master plan that will provide medium and long-term (up to 25 years) maintenance and replacement needs for the Town’s water and sewer systems. Source of Funding: Borrowed Funds (Short Term becoming Long Term through the Municipal Finance Authority)

Angela Avenue Sewer Lift Station Maximum Amount of Expenditure: $1,000,000 Department: Sewer Object: - To design and construct a new sewer lift station as the current design for the main trunk line replacement through the downtown core requires this facility. Source of Funding: Borrowed Funds (Short Term becoming Long Term through the Municipal Finance Authority)

Decommissioning of Wells 1 & 2 and Replacement Facilities Maximum Amount of Expenditure: $4,000,000 Department: Water Object: - To decommission the two wells located in Memorial Park as the infiltration risk to these facilities exceeds Health Authority guidelines. Also includes funding for the design and supply of two new wells at alternate locations within the Town, disinfection facilities for the water drawn and connection to the Town’s water supply. Source of Funding: Provincial Grant through Emergency Management BC

Fire Department Equipment Maximum Amount of Expenditure: $65,000 Department: Emergency Services Object: - To replace the current exhaust system in the vehicle bays of the Princeton Volunteer Fire Department building. Source of Funding: 66.67% Current Year Taxation, 33.33% Shared Service Grant from the Regional District of Okanagan-Similkameen

Fire Hall Roof Replacement Maximum Amount of Expenditure: $65,000 Department: Emergency Services Object: - To replace the roof of the Princeton Volunteer Fire Department building. Source of Funding: 66.67% Current Year Taxation, 33.33% Shared Service Grant from the Regional District of Okanagan-Similkameen

Official Community Plan Maximum Amount of Expenditure: $100,000 Department: General Government (Corporate Department) Object: - To update the Town’s Official Community Plan Source of Funding: Current year taxation and grant provided by UBCM

Downtown Revitalization Maximum Amount of Expenditure: $100,000 Department: Economic Development Object: - To enhance the tourism appeal of the Town by adding to the inventory of bronze statues within the downtown core Source of Funding: Grant funding as provided for by Government of Canada (Pacific Economic Development Canada)

Schedule “D” Proposed Reserve Transfers & Adjustments for Non-Cash Transactions

Note: As per Section 165(8) of the Community Charter, the proposed transfers to or between funds must be set out for each reserve fund. Actual transfers between reserve accounts will be done by resolution of Council by the end of February 2023.

Proposed Transfers to or from Reserve:

Planned Transfers to Reserve

2022 2023 2024 2025 2026

Future Amenity Reserve 300 300 300 447 483 Water Reserve 140 0 0 0 0 Sewer Reserve 115 115 115 115 115 Infrastructure Reserve 23 24 25 26 27 Capital Asset Reserve 3 3 3 3 3 Firehall Equipment Reserve 609 121 134 0 0 Development Cost Charge Reserve 500 500 500 500 500 Unrestricted Surplus 9 37 708 810 751 Total Amounts to Reserve 1,699 1,100 1,785 1,901 1,879

Planned Transfers from Reserve

2022 2023 2024 2025 2026

Parkland Reserve 73 0 0 0 0 Paving Reserve 154 0 0 0 0 Land Sales Reserve 315 1,380 0 0 0 Water Reserve 218 41 140 134 122 Capital Asset Reserve 92 0 0 0 0 Sewer Reserve 112 0 0 0 0 Future Amenity Reserve 227 0 0 0 0 Airport Reserve 155 0 0 0 0 Firehall Equipment Reserve 54 0 667 0 0 Arena Reserve 62 0 0 0 0 Unrestricted Surplus 0 0 0 0 0 Total Amounts from Reserve 1,462 1,421 807 134 122

2022 2023 2024 2025 2026

Total Amounts from Reserves 1,699 1,100 1,785 1,901 1,879 Total Amounts to Reserves 1,462 1,421 807 134 122 Net Change in Reserves 237 (321) 978 1,767 1,757

Proposed Non-Cash Adjustments

The budget as itemized in Schedule “B” is based on a cash basis. Capital assets are not expensed fully in the year they are incurred, rather they are capitalized as long-term assets and expensed over several years as an amortization expense. This schedule performs these adjustments to conform with the financial statements of the municipality:

2022 2023 2024 2025 2026

Transfers from Capital Expenses to Asset Base 32,076 6,775 6,298 3,414 2,967 Amortization Expenses by Department: General Government 93 91 89 88 86 Protective Services 83 82 114 112 109 Public Works 911 923 933 944 952 Recreation & Leisure Services 56 61 60 60 63 Water 162 188 185 184 180 Sewer 174 170 167 164 161 Total Amortization 1,479 1,515 1,548 1,552 1,551 Capital Plan Adjustments 30,597 5,260 4,750 1,862 1,416 Net Unadjusted Change in Reserves 246 (311) 988 1,777 1,767 Net Adjusted Revenue (Expense) 30,833 4,949 5,738 3,639 3,183

Schedule “E”

TOWN OF PRINCETON

PERMISSIVE TAX EXEMPTION POLICY

POLICY STATEMENT

The Town of Princeton recognizes the significant value of volunteers, volunteer groups and agencies to the spiritual, educational, social, cultural, and physical well-being of the region. A property tax exemption is a means for Council to support organizations within the town that further Council’s objective to enhance the quality of life while delivering services economically to the citizens of the town.

1) PURPOSE

a) To provide clarity, consistency and certainty to the Town, the public and prospective applicants in processing applications for exemption from property taxes pursuant to section 224 of the Community Charter.

2) RESPONSIBILITIES

a) Council may: • Make revisions, additions or deletions to the Policy. • Receive delegations from non-profit organizations requesting a tax exemption under this policy. • Consider property tax exemption applications on an annual basis. b) The Director of Finance, Chief Administrative Officer or their delegate, shall: • Review the policy, from time to time, an d provide Council with changes, if required. • Establish an application deadline. • Advertise the opportunity to apply for a property tax exemption in the local newspaper twice prior to the application deadline. • Ensure application forms are available at Town Hall. • Review all applications for completeness and contact the applicant if additional information is necessary. • Prepare a summary report of applications and bylaw for presentation to Council at their mid- September meeting for consideration, approval and adoption prior to October 31st of each year. • Ensure the advertising and public notice processes comply with Section 94 of the Community Charter. • Submit a public notice of the proposed bylaw to be placed in local newspapers. The notice will include: − Property subject to bylaw − Description of the proposed exemption − Number of years the exemption will be provided − Estimate of the amount of taxes that would be imposed on the property if it were not exempt for the year of exemption. c) The Applicant shall: • Submit a complete application to the Town on the approved form prior to July 31st of each year. • Provide the information required to adjudicate the application. • Appear before Council, if required. • Provide records and/or property to verify information provided in support of application.

3) PROCEDURES

a) Eligibility Criteria To be eligible for a property tax exemption an organization must comply with all of the eligibility criteria outlined below. The application forms and supporting documentation are an integral part of this policy. There is no obligation on the part of Council to grant property tax exemptions in any given year. The applicant(s) must: • qualify for an exemption under the provisions of the Community Charter general authority for property tax exemptions. (Section 224) • be in compliance with Town policies, plans, bylaws, and regulations (i.e. zoning); • be a Non-Profit Organization; • not be in competition with for-profit business. • provide services or programs that are compatible or complementary to those offered by the Town. When a service or program is offered by a non -profit group or club, the community benefits from a more cost -effective provision of services; • provide a service that fulfills some basic need, or otherwise improves the quality of life for residents of the Town of Princeton. b) The principal use of property must meet Council’s objectives. The “principal use of the property” refers to the use related directly to the principal purpose of the organization owning the property. Property tax exemptio ns will be based on the principal use of the property, not on the non -profit or charitable services of the organization. c) The organization will provide benefits and accessibility to the residents of the town. specifically, members of the public, within the appropriate age range, are able to join a club or organization and participate in its activities for a nominal rate or fee; Town residents must be the primary beneficiaries of the organization’s services. The services provided on the property must be accessible to the public. Council may, at its discretion, provide partial exemptions. d) *removed October 7, 2019*; e) Organizations that provide short term housing with length of stay up to a maximum of two years, including emergency shelters, transitional housing , supportive housing for people with special needs, and group homes are eligible. f) Organizations that have a residence in the building or on the property will only be exempt if a caretaking function is performed and the property owner (organization) can provide a copy of an agreement demonstrating: • rent is not collected on the residence; and, • there is a caretaker agreement in place.

4) PUBLIC NOTICE

a) Successful applicants may be asked to publicly acknowledge the exemption.

5) DISCLAIMER

a) Council may, at its discretion, reject any or all applicants in any given year. b) Applications received after the deadline of July 31st will not be considered until the following year’s submissions to Council.

6) DURATION AND TERMINATION

a) Unless otherwise passed by Council, permissive tax exemptions will be for a ten (10) year duration b) Council may revoke a permissive tax exemption in any year of the ten (10) year period by bylaw if the group receiving the exemption violates this policy, no longer is eligible for an exemption as per this policy, or no longer qualify as per legislation (Community Charter).