Moment with the Mayor: SAMA Error

Hi Everyone:

Spring, verging on summer, is finally here. Crocuses can be seen along the walking trail and the leaves are out.

I want to thank three businesses for coming forward to challenge the Saskatchewan Assessment Management Agency’s (SAMA) recent valuations. As a result of these challenges, SAMA realized that they made an error in their calculations of more than $5 million. As a result, SAMA is appealing 103 commercial property valuations on behalf of owners and the Town.

The error revolves around the Market Adjustment Factor (MAF), which is based on local sales. MAF is a variation of the sale price in relation to depreciation replacement cost. Previously, commercial properties were assessed based on location. Along the highway and in the industrial area, the MAF was 1.00, while other commercial properties were assessed at 0.55 or 0.57. In 2013, the MAF for all commercial properties was set at 0.91, a significant increase for the properties previously assessed at 0.55 or 0.57.

The three businesses pointed out some problems with this calculation, leading SAMA to examine their own information and realize that there were properties included that should not have been included. The result now is that, rather than one rate for all commercial properties, the former split remains. For commercial properties along the highway and in the industrial area, the MAF has been adjusted down to 0.92 from 1.00, while all other commercial properties see their MAF rise to 0.7. What this means for the Town is that we have to readjust the mill rate to 13.7. Council will be passing a new resolution for this at the May 27 Regular Council Meeting.

Based on the new mill rate to be approved by Council, the overall increase in the municipal levy from 2012 will be 2.8 percent for commercial properties and 2.4 percent for residential.

Thank you to SAMA for the timely way with which they have responded to this error.

It has come to my attention that some people believe that Kindersley has a water shortage. I want to assure you that we are not facing a shortage. The rumours of a shortage are false. We have made huge capital investments to increase our water system capacity and there has not been excessive usage. We also have very hard working staff at the Water Treatment Plant.

A bouquet goes to Kamruz Zaman, the Town’s Director of Engineering, Planning and Development. Recently, Kamruz helped find a cost effective way of resolving a local business’s engineering problem.

Please write or phone if you would like me to discuss a particular topic. If you have any questions or comments drop me a line at the town office or email me at mayorenns-wind@kindersley.ca. I appreciate your feedback.

Have a good week!