SUMA Convention 2015: Premier's Address

The following are some of my notes of the Premier's address.

• Revenue loss estimated $600m-$800m which is about 5%-6%
• No money for more, some same, some less
• Revenue sharing has worked well and has been consistent and stable
• Sask Party keeps commitments
• People expect politicians to respond to extraordinary conditions
• Last downturn saw main stream growth
• This time is not as bad with strong potash and agriculture
• Economic growth in 2015 expected to be 2%
• Only 2% of new jobs are in resource sector
• Provincial role is to set tone and good environment
• Budget Goal: keep strong
• Priorities:

·         low taxes,

·         income and education tax reduction,

·         new incentives,

·         controlled operational spending,

·         build infrastructure and reduce infrastructure deficit,

·         HR training, international engagement including municipalities,

·         competitiveness,

·         no deficit

• Working towards a tax revenue virtuous circle.

·         This is my understanding of the what the Premier means: where the growth in tax revenue is due to economic growth and is enough for government business and capital

SUMA Convention 2015: Community Safety Officer

• Purpose is a better more responsive model for local enforcement
• Priorities set locally
• CSO is about risk assessment and compliance
• Process for Approval

·         Request

·         Business case including enforcement priorities

·         Approval under CSO authority

·         MOU with local police jurisdiction including clear roles and responsibilities

·         Hiring process

·         Appointment

·         Evaluation of both local and provincial metrics

• CSO has limited powers of arrest
• Governance

·         Values?

·         What does success look like?

·         Map success strategy

·         Oversight through clear reporting

• Success?

·         Feels safe

·         Trust

·         Engaged

·         Explain

·         Training for mediation and de-escalation

• Strategic: define objectives and operating philosophy

·         5 Areas

·         Bylaw enforcement

·         Agency collaboration

·         Community Education

·         Provincial Statues: traffic weights

·         Ongoing development and accountability

• Communication Goals:

·         Why,

·         How (Inform, Educate, Enforce)

• Opportunity: Community priorities, define and set service levels, grow and develop community, control costs

SUMA Convention 2015: The Pulse of Procurement

Hi, here are some notes from the session on procurement. The process is designed to be open and transparent enabling communities, and their tax payers to receive the best value while also being fair to bidders.

 

• Governments, when tendering, have to abide by trade agreements, internal agreements, and statutes and regulations.
• Only compliant bids are accepted including being on time.
• There is a duty to treat bidders fairly and equally with openness and transparency
• An ambiguous waiver clause has been ruled not fair
• Contract A process:

·         Only compliant tenders accepted

·         Lowest should be accepted all things being accepted

·         Duty of fairness when evaluating

·         Multiple compliant bids create multiple Contract A

• Contract A Indicators

·         Bids are irrevocable and non negotiable

·         Obligatory

·         To cancel a tender

·         No technically acceptable bids

·         Prices are higher than budgeted or estimated

·         Major change to scope of work

• Non binding procurement: Request for Proposals creates flexibility but still a duty of fairness

·         No Contract A

·         Best value procurement

·         Multiple evaluation criteria

·         Ability to negotiate terms, conditions and proposed alterations

• New West Partnership includes BC, AB, SK

·         Largest barrier free trade area in Canada

·         There are no restrictions on trade, investment, and labour mobility

·         Threshold for NWP: $75,000 for goods and services, $200,000 for construction

·         Duty of fairness is required with no local preferential treatment

·         Limited exclusions include: unforseeable incidents, demonstrate only one supplier, procurement from a public body, non profits, and organizations serving disabilities

SUMA 2015: Property Assessment and Taxation Workshop

Sunday morning at 9:30 Councillor Henry and I attended the property assessment and taxation workshop. Here are some highlights.

• legally municipal governments are a natural person (recognized in court like a corporation) and has government powers (tax).
• all properties are to be assessed.
• there is distance between the assessment and municipalities.
• SAMA assesses reports assessed property values to municipalities 'Ad Valorem' (to value) otherwise known as mill rate
• considered a reasonable expectation of a person's ability to pay
• taxes = taxable assessed value x tax rate
• three property classes: agriculture, residential, commercial & industrial
• municipal tax policy is:
• what taxes to levy,
• what amounts, and
• who pays.
• mill rate factors transfer tax burden from one property class to another
• minimum tax reduces tax rate by increasing taxes lower valued properties
• base tax reduces the tax rate by increasing taxes on lower valued properties
• City
• create a tax phase in program to mitigate tax increases or decreases
• create sub classes

SAMA

• is looking to simplify their valuation data and their systems to improve service
• the importance of assessments is to provide the financial foundation for local governments
• Assessment Principles:
• mass appraisal,
• base date
• four year updates
• based on legislation
• market valuation standard
• regulated property assessment standard
• equity
• SAMA Board Orders
• relevant assessment legislation:
• The Assessment Management Agency Act
• prepare assessment manuals, guidelines, handbooks, and other materials
• perform valuations and revaluations
• maintain a central database
• ensure the public, municipal cuncils a government aware of assessment methods and policies
• confirm assessments of municipalities
• The Cities Act
• The Municipalities Act
• The Northern Municipalities Act
• corporations prefer longer term (3-5 years) between valuations for the sake of stability
• non regulated property assessment is an assessment for property other than a regulated property assessment
• mass appraisal means the process of preparing assessments for a group of properties as of the base date using standard appraisal methods, employing common data and allowing for statistical testing
• market value means the amount that a property should be expected to realize if the real estate in fee simple in the property is sold in a competitive and open market by a willing seller to a willing buyer, each acting prudently and knowledgeably, and assuming that the amount is not affected by undue stimuli
• market variation standard is the standard achieved when the assess value of the property
• is prepared using mass appraisal
• is an estimate of the market value of estate in fee simple in the property
• reflects typical market conditions for similar properties
• meets quality assurance standards established by order of SAMA
• Market Valuation Standard Publications
• Market Value Assessment in SK
• SAMA's 2011 Cost Guide
• Marshall and Swift/Boechk LLC.
• Market Valuation Standard has three accepted  approaches to value
• cost approach
• sales comparison approach
• property income (Rental) approach
• Role of Assessor
• municipal employee
• prepare assessment role
• determine tax class of property
• determine tax status (assessable or exempt)
• Role of Assessment Appraiser
• independent of municipalities
• establish, maintain, and undertake valuations
• Assessment Appraiser has right of entry:
• produce identification
• reasonable times
• reasonable request
• Land valuation is the average selling price as of the applicable base date
• the new base date is January 1, 2015
• improvement valuation uses replacement cost with adjustments for depreciation and average selling price
• Cost Approach
• Property Value = land value + building value
• recent property valuation trends have been rising steeply
• residential last time was about 33% across the province
• agri arable rose about 100.2%
• oil and gas rose 15%

SUMA Convention 2015 Schedule

This week is SUMA (Saskatchewan Urban Municipality Association) Convention in Saskatoon. Here is my tentative schedule at SUMA.

·         January 31, 2015

·         MLDP: Community and Land Use Planning Workshop

·         February 1, 2015

·         Property Assessment and Taxation Workshop

·         The Pulse of Procurement Session

 

·         The Beat of the Street: Community Safety Officer

·         SUMAssure AGM (I am making a Director Presentation)

·         Energy East Prairies Reception

·         Supper with Town of Nipawin Council and Staff

·         February 2, 2015

·         Associated Engineering Breakfast

·         SUMA Business

·         Premier’s Address

·         Lunch with City of Warman Council and Staff

·         Sector Meetings

·         Pumping Up Youth Session(I am a Panelist)

·         Council/Staff Supper

·         February 3, 2015

·         Chantal Hebert

·         SUMA AGM

·         Sector Reports

·         Lunch with Legal/Procurement

·         Minister of Government Relations

·         President’s Banquet (I am extending sponsorship greetings on behalf of SUMAssure)

·         February 4, 2015

·         Dialogue with Ministers

·         Bear Pit with Cabinet

·         Home for Supper

MLDP: Community and Land Use Planning Workshop

Today Councillor Henry and I attended Municipal Leadership Development Program (MLDP). This is a program to help elected officials and administrators better understand best practices and legislation for municipalities. The program is sponsored by:

·         Saskatchewan Association of Rural Municipalities,

·         Saskatchewan Association of Urban Municipalities,

·         Rural Municipal Administrators’ Association of Saskatchewan,

·         Urban Municipal Administrators’ Association of Saskatchewan,

·         Saskatchewan Ministry of Government Relations, and

·         New North – SANC Services,

While Councillor Henry was sitting in on Human Resources I was attending Community and Land Use Planning.  The workshop outline included:

·         Planning Structure Overview,

·         Official Community Plan,

·         Zoning Bylaw,

·         Amendments,

·         Public Consultation,

·         Subdivision,

·         Dedicated Lands,

·         Servicing Agreements,

·         Development Permits,

·         Appeals,

·         Enforcement,

·         Fees,

·         Regional Planning, and

·         Building Permits.

Here are some highlights of the workshop:

·         Canadian Institute of Planners Definition of Planning:

·         “the scientific, aesthetic, and orderly disposition of land, resources, facilities and services with a view to securing the physical, economic and social efficiency, health and well-being of urban and rural communities”.

·         Planning is governed by Provincial Legislation:

·         The Planning and Development Act, 2007,

·         Statement of Provincial Interest,

·         The Subdivision Regulations,

·         The Dedicated Lands Regulations

·         Municipal Plans

·         Official Community Plan (OCP),

·         Zoning Bylaw

·         The role of the Provincial Government through Government Relations, the Community Planning Branch:

·         Review and Approve Plans,

·         Planning Inquiries,

·         Subdivisions,

·         Protect Provincial interests.

·         The role of the municipality:

·         Create plans,

·         Subdivision review and servicing agreements,

·         Development Officer,

·         Development Permit,

·         Enforcement,

·         Appeals, and

·         General Inquiries.

·         Role of the Planner

·         Research, analyze, and recommend,

·         Balance a variety of interests,

·         Develop clear plans for action for Council and community.

·         Why a planner?

·         Legislative Requirement: Planning and Development Act, 2007 Section 29(3) “The official community plan shall be prepared in consultation with a professional community planner”.

·         Community Need: many municipal issues revolve around planning considerations, such as housing, infrastructure, environmental, social services, location of development, conflict.

·         The OCP is a Statement from Council to residents about what the municipality wants to do in terms of growth management and as a growth guide for the community.

·         Included in the OCP are:

·         Goals, objectives, and policies for land use, subdivisions, services, green space, and public utilities, etc

·         Specifies what types of development are appropriate and under what circumstance to ensure healthy community growth.

·         The plans are important so the community is ready for development so services are planned, regulations are set, community is aware of Council’s attention.

·         The plans provide regulatory and cost certainty for developers.

·         The benefits of the Zoning Bylaw include:

·         Districts/Zones,

·         Development Permits,

·         Minor Variances,

·         General Conditions and Regulations,

·         Clarity,

·         Alignment between current and future users.

·         The difference between the Zoning Bylaw (ZB) and OCP include:

·         ZB s specific and OCP is broad,

·         ZB is regulatory and OCP is policy,

·         ZB is used daily while OCP is a guide for future direction and guidance

·         Recently Council has been amending the ZB and here is the process:

·         Application,

·         Fee,

·         Administrative Review,

·         Referral,

·         Council Approval,

·         Ministerial Approval.

I had a lot more notes but my computer has not been cooperating.

Getting Flocked!

The KCS Interact Club has started another fundraiser. They thought they should do my house. It cost $35 to remove the birds and signs and assign them to someone else and then $15 as insurance against having them placed on our yard again. It is funning. We decided our friends the Klassens should look out their front window and gaze upon some pink flamengos.

Flocked! January 29, 2015

Moment with the Mayor: Changes to Revenue Sharing by the Province

Hi Neighbours:

Premier Wall has been in the news recently discussing the effect of falling resource revenues on the upcoming budget. The Premier has also said that one of the items up for consideration is the share of the PST revenue given to municipalities. The stated goal of the government is to have a balanced budget.

Municipalities now receive 20% of PST revenue. This is an agreement that is the envy of municipalities from other jurisdictions across Canada. The intent behind this program is to provide municipalities with a stable and predictable source of funding. We received notice of the amount of this year’s share prior to completing our budget.

What does this mean for Kindersley? The revenue the Town receives from this could be up to $1 million. Should this funding decrease, the Town would have to revisit the budget to either cut the budget, raise taxes, or a combination of both. This is another instance of the province downloading costs onto municipalities. Who is bearing most of the cost of the growth of Saskatchewan? 

Municipalities. How are we coping with this pressure? Municipalities are requiring developers to pay for infrastructure and they, in turn, include those expenses in the cost consumers pay for the end product. This is one of the reasons lots are expensive.

Unlike the provincial and federal government, municipalities cannot run deficits. The only revenue streams municipalities have are property taxes and user fees. Some municipalities, such as RMs, have another stream that taxes large equipment on property.

The Premier stated in the Leader-Post of January 9^th: "The broader context is a tighter budget, we want to balance it, and that means some tough decisions and everything needs to be on the table." I’m wondering if the province realizes that when they say “everything is on the table” it is a very broad scope. They will indirectly determine the level of service the Town could provide, the repairs to the WCEC, new parks, and more. Administration and Council made these budget decisions based on the numbers the province provided to the Town.

I appreciate that the province wants to balance their budget. My question is: Why is the province doing it on the back of municipalities? By reducing funding to municipalities the province reduces the gap between their revenues and expenses. However, to accomplish this municipalities are expected to either increase taxes, reduce services or infrastructure investment. Frankly, how is this balancing the budget?

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. You can also check out my blog at http://mayorjohn.blogspot.ca/. I appreciate your feedback.