Friday 16 August 2013

Property Tax Review: A Letter to Minister Reiter, Government Relations

Recently the provincial government through the Ministry of Government Relations initiated a review of property tax tools. What follows is a letter sent to Minister Reiter in response.

August 8, 2013

Honourable Jim Reiter
Minister of Government Relations
Government of Saskatchewan
Room 348
Legislative Building
2405 Legislative Drive
Regina, SK
S4S 0B3

Dear Minister Reiter,

RE: Property Tax Tools Consultation

Thank you for your letter addressed to Saskatchewan municipalities seeking input on property tax tools.

The Town of Kindersley is on record with the Saskatchewan Urban Municipalities Association as supporting any initiative designed to provide small urban municipalities with the flexibility to sub-categorize properties within a single property class, as is permitted for large urban municipalities.

Kindersley is rapidly growing.  While the 2011 Census conducted by Statistics Canada and released last year states that our population is 4,678 people - a six percent increase over the last national census conducted in 2006 - the Heartland Health Region states on its website that Kindersley is home to 5,321 people. This is a difference of 643 people (or 12%) and has an effect on the provision and delivery of services to our residents. The Census reflects a person’s “permanent” residence.  In Kindersley we have workers servicing the oil fields who are on short/medium and long term contracts and live full-time in our community. 

Our hotels are at 98% capacity and our camp ground is at capacity with workers calling it home. We have two new hotels just completed that are at capacity and another hotel scheduled to open this fall. Our home vacancy rates are at near zero percent and very few homes are available for purchase, however two residential developers have commenced new phases of mixed use residential developments.   Commercially, businesses are expanding and new businesses are calling our community home.  Needless to say, like elsewhere in Saskatchewan, we are busy and growing.

With growth comes opportunity, but also challenge.  The Government of Saskatchewan can assist municipalities with these challenges and we are encouraged by your efforts.  We need your help.  Currently your Government only recognizes official Stats Canada census data for confirmation of population.  Private census data are not recognized.  Kindersley cannot wait until the next Census to take advantage of certain opportunities afforded to large urban municipalities that have a population over a Census confirmed number of 5,000 people.  We would like options to confirm our actual residential population so we can properly deal with the immediate, and plan for the future.  Also, having the ability to sub-categorize within property tax classes provides a municipality with the necessary tax tools to ensure that shifts in property taxes are not unfairly weighted onto one entire class.  These tools are essential for municipalities investing in their futures.  Classes such as the ones listed below must be considered for small urban municipalities:

-          Commercial: highway commercial, downtown commercial, big box/shopping centre commercial, occupied commercial, unoccupied commercial
-          Residential: single family; multi-residential; senior’s home residential; vacant; occupied.
-          Industrial:  brownfield; vacant; occupied; heavy; light
-          Farm: seeded; unseeded
-          Pipeline
-          Elevator
-          Managed Forest

In a region where abundant growth is the new normal, where capital transfers quickly and people move easily, property taxes provide municipal governments a degree of revenue certainty. This certainty must be maintained for municipalities to ensure prudent and responsible governance and management, and the greater flexibility municipalities have to levy these taxes within property tax classes the more effective they can be.

Finally, as part of the consultation process, you requested a description and amounts of fees charged in our community.  The chart below details this information.  In addition to this, we have annual business license fees ranging from $75 to $175 depending on the business type.
Town of Kindersley Schedule of Fees, 2013
 Thank you for the opportunity to share our views and opinions.  We look forward to your review.
  
Sincerely,


John Enns-Wind                                                                               Bernie Morton

Mayor                                                                                   Chief Administrative Officer

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