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HomeMy WebLinkAbout2009-01-08 Minutes CLARINGTON AGRICULTURAL ADVISORY COMMITTEE MEETING THURSDAY, JANUARY 8, 2009 MEMBERS PRESENT: Tom Barrie Gary Jeffery Henk Mulders Eric Bowman Brenda Metcalf Mark Bragg Ted Watson Jennifer Knox Mary Ann Found Ross McMaster Orwin Bandstra Donald Rickard REGRETS: Councillor Gord Robinson - regrets STAFF: Faye Langmaid Susan Hajnik GUESTS: Kathy Blake from MPAC Terry Lynn Wright, Valuation Review Analyst Peter Titanic, Senior Farm Valuation Analyst Chair called the meeting to order at 7:30 p.m. Adoption of Aqenda 09-01 Moved by Eric Bowman, seconded by Gary Jeffery "That the Agenda for January 8, 2009 be adopted" Carried Approval of Minutes 09-02 Moved by Eric Bowman, seconded by Ted Watson "That the minutes of the November 13, 2008 meeting be approved." Carried Guests: Peter Titanic, Senior Farm Valuation Analyst Peter is the Senior Farm Valuation Analyst for MPAC, working out of Trenton office, covering 15 thousand farm properties in the Durham Region and Peterborough area. Peter conducts the required research and sales analysis to properly value all farms located within his assigned jurisdiction. In 2006 total farm valuation was $1,871,501,000.00. There are approximately 250 farm or farmland sales annually within Durham Region Established in 1997 by the Minister of Finance, MPAC is a not for profit, non-share organization managed by a board of directors appointed by minister of finance. There are 8 municipal, 5 taxpayer and 2 provincial representatives. MPAC primary duty is to fulfill the statutory obligation under the Assessment Act and other statues. MPAC assigns property class or classes to each property. These include residential, multi-residential, commercial, industrial, farm and managed forest. MPAC is also responsible for the assessment rolls used by municipalities to calculate property tax. Tax rate (set by Municipality) X Current Value Assessment (set by MPAC) = Property Tax Levy Determination of Farm Land Values The Current Value Assessment (CVA) on farms are based on an estimate of their 2008 Replacement Cost New Less Depreciation (RCNLD). The land values are based on analysis of open market, sales of unimproved farm land, measuring 20 acres and over to full time farmers. 10 vacant farm land sales from Durham were used in this analysis. 5 of these sales were from Clarington. No sales from Pickering, Ajax, Whitby or Oshawa were used. 2 other sales were not used in the analysis as they were deemed to high. Farm properties are valued using a market driven cost approach. Farm Residence (RCNLD) + Farm Outbuildings (RCNLD) + Other (RCNLD) + Land Value Current Value Assessment Farm Property Class Land used for farming, including outbuildings, is farmland if a farming business, within the definition of the "Farm Registration and Farm Organizations Funding Act" is carried out on the land. Properties that meet the requirements of OMAFRA from the farm property class will be taxed at 25% of the municipal, residential tax rate. Property in the residential property classes purchased and starting to be farmed can not be reclassified in the current year. Dual Use Property Portions of property used for farming purposes are assessed as "farm" using farmland rates. Portions used for non-farm purposes area assessed as "other than farm". If a property has an implement dealership on-site and the balance of property is being farmed, the dealership would be assigned to the commercial property class, while the farm portion would be assigned to the residential or farm property class if approved by OMAFRA. Property where a non-farmer owns and lives on the property, but part is being tenant-farmed is classed s dual-use property. The land associated with the house is valued as residential land, while the land being farmed and any out-buildings being used by the tenant farmer are classified as farm land. There are approximately 2000 such properties in the Durham Region. AACC January 13, 2009 Value Added Farms Value added farms have a commercial/industrial operations which are considered to be an extension of the farming operations. For example, a farm that grows grapes and processed into wine on the same property. The major difference between value added properties and dual use properties is the valuation of the land. The land under the structures in the value added activity would be valued with farm land rates as opposed to industrial land rates. The portioning of value is to reflect the actual use taking place on a property. The land and buildings used for residential purposes would be placed in the residential tax class, the land and buildings used for farm purposes would be in the farm tax class and the land and buildings used for commercial or industrial purposes would be placed in the commercial and/or industrial tax class. Horse farms Prior to the passing of new legislation the assessment of horse farms was always a contentious issue. The presence of horses did not constitute a farming operation, while the breeding of horses did. Boarding horses, riding trails and riding lessons were considered to be commercial activities for the property tax purposes. Under new regulations these activities are not considered to be farm activities when they are carried on for hobby or recreational purposes. In other words, discretion must still be used in the determination of whether or not equestrian operations are farm operations. These activities are considered to be rural recreational in nature and will be classified as "other than farm". Since the farm has these non-farm uses it will be considered a Dual Use. At what point does the property become commercial? Would have to look at situation and see if it is actually a commercial facility. A farmer selling his own used equipment will not be assessed as commercial. For assessment purposes if he had an actually implement dealership on the property, operating that acre or area of the property will be assessed as commercial. Green Energy The value of the wind turbine tower would be equal to $40,000 multiplied by the maximum output capacity, measured in megawatts, of the generator attached to the tower. The value of the land on which the tower is located would be the same as surrounding lands. Therefore, if the tower was located on farm land, the value of one acre of farm land would be affiliated with the tower. The tower value and farm land value would be placed in the Industrial tax class. There is currently no legislation yet passed regarding the valuation of solar panels or bio-gas. Greenbelt The Greenbelt protects 1.8 million acres of land from urban development. Close to 1 million of those acres are farmed. On a regional basis Greenbelt farms are 33% smaller than the average Ontario farm, but per acre the lands are more productive producing 12% more gross income. The Durham Region has the highest concentration of the Greenbelts approximately 1,118 beef farms. The fact that a property is located in, or not in the Greenbelt has no bearing on it's assessed land value. AACC January 13, 2009 At what age is a building depreciated to the value of Zero? Based on using cost tables and depreciation tables. If building has been inspected due a sale, or permit application, it would have been seen and could be determined to be in good/fair or poor condition. As long as building is maintained and used there is value there. www.mpac.ca Your assessment notice should have a user id and password, you can go to www.aboutmvpropertv.ca to see report on your property. Should have details about each structure on the property. Property profile report can be obtained from MPAC by either e-mail or sending a written request. This will give you a break down of the assessment and value of farm property. Assessment on bunk houses is still not finalized. Are there properties of 10 acres that could have a farm designation? Yes, there are intensive farm locations. There are very few. Although they do exist. Election of New Chair: Ted Watson nominates Gary Jeffery for Chair Gary Jeffery accepted nomination Don Rickard, moved that nominations be closed. Ted Second. Vote Gary Jeffery is Chair Carried Election of new Vice-Chair Brenda Metcalf volunteers. Carried Brenda Metcalf- Vice Chair Business Arising from Minutes: The Farmers Parade of Lights had its best parade so far. Number of cars on side of road was astronomical. Police did a great job this year. Everyone liked the parade. Four more floats than anticipated. AACC January 13, 2009 Many of the committee members sent letters on the pesticides EBR posting prior to the deadline of Dec 22. CORRESPONDENCE Public Meeting notice on Bio-mass trial at Brock landfill Ontario farmland trust information on looking for mentors REPORTS FROM OTHER COMMITTEES 407 Committee There is a Public Information Session planned for January 27, at Rickard Complex. DAAC Whitby is putting forward a resolution that all eggs come from organic free range chickens... ... must be certified. Pickering has endorsed. There are a couple other resolutions coming forward as well, which many of the members consider to be lobbying for specific types of agricultural operations and practices without informing Council's of the pros/cons of the request. Committee members do not believe these resolutions should be endorsed and ask that the message be conveyed to Councillor Robinson in advance of the Council meeting where they will appear for endorsement. Two police officers came to meeting and listened to farmers concerns. Police do not have access to information regarding property ownership. Resolution of preserving farm land was passed on for information purposes. Durham Federation of Aq Zach Callhoun is local president. Farm Connections is April 7, 8 & 9. Open house will from 4:30 to 8:30 on the Wednesday. OTHER BUSINESS Resolution 09-03 Highway Traffic Act Resolution Moved by Ted Watson Seconded by Ross McMaster Whereas the Highway Traffic Act of the Province of Ontario in Section 122 sets out the weight restrictions for reduced load periods and the exceptions to this restrictions; and Whereas one of the exceptions is for vehicles used exclusively for the transportation of milk; and AACC January 13, 2009 Whereas there are other perishable products that need to be transported onto and off of farms during the season when reduced load periods are in force; and Whereas there are essential farm inputs necessary for the ongoing production and viability of farming; and Whereas the number of truck trips for these products are limited by the amount of production capacity; and Whereas the Provincial government is supportive of the agricultural industry which is vital to the economy of Ontario, the local production of food and food security; Now therefore be it resolved that the Highway Traffic Act, Section 122 be amended to include as an exception vehicles used for the transport of perishable commodities and essential farm inputs; And further that this resolution be circulated to all members of the Association of Municipalities of Ontario for endorsement. AACC 2008 Accomplishments should be presented to GPA by the new chair. Gary to discuss with Faye his availability to attend the General Purpose and Administration meeting. FUTURE AGENDA February Perry Sisson, CLOCA Mark Peacock, GRCA Thank you to Tom for being chair for the last two years. Moved to adjourn Eric AACC January 13, 2009