Council Debates Tax Policy As Businesses Prepare For Eight Percent Tax Increase

By Robert Thomas

Tweaking the 2025 proposed tax policy was something Administrator did not want to see.

But nevertheless one councillor, Councillor Chris Warren, still attempted to make changes to the policy.

In a spirited one hour long debate Councillor Warren wanted to see changes to tax policy as it applied to residential class and the commercial/business class.

Under the recommendation from Administration the tax increase should be shared between the Residential property class and the Commercial/Industrial property class.

The residential property class was divided into three different categories with multi dwelling units seeing the lowest rate and single family dwellings being hit the hardest hit by the new assessment.

Councillor Warren said if home owners ended up paying more in taxes it was due to the local economy.

“It’s like a reflection of inflation. (Their taxes) went up simply because their homes increased in value…if we use subclasses it negates the new assessment,” Councillor Warren said.

When it came to tax policy Acker said “there is always winners and losers (when it comes to municipal property taxes).”

Home values were based upon their resale value and how much and how many homes were sold in an area drove assessment values.

The tax policy would see a municipal tax increase of 5.17 percent shared at 6.06 percent for residential class properties and 3.31 percent for commercial/industrial properties.

With a reserve fund set aside for commercial tax appeal losses the actual tax increase is 8.31 percent for commercial/industrial properties.

The reason for the tax appeal reserve is to help cover assessment losses, if any, from the 68 ongoing tax appeals before the Saskatchewan Municipal Board.

“It’s about 30 - 40 in assessments. At two percent it’s about $800,000,” financial director Brian Acker said.

The five percent appeal reserve fund of being applied to the commercial/business class as this property class will most likely generate the greatest number of assessment losses.

Councillor Warren wanted changes to a major pillar of the proposed tax policy. He put out a motion to make a major change to the commercial/industrial property class reserve.

“Do not collect the five percent. In 2026 adjust it for any lost appeals in 2025,” he said, adding “I would like to try something different.”

“It’s like how we deal with budgets in many different ways.”

“I would prefer to let the appeals processes take place and see the actual losses,” Councillor Warren said.

Acker said the change in policy could end up costing the City $90,000 that they would have to make up if they abandoned the five percent reserve fund.

“We’ve lost five percent in the past four years and I think we will again.”

Acker said there was a high potential to have to make up $90,000 next year if there was no five percent reserve charged.

“In 2025 you are putting us in a position where we will likely have a deficit,” Acker said about abandoning the five percent reserve fund.

There are no other fund’s available - Council was told - with the accumulated surplus fund being depleted.

In the end Councillor Warren’s amendment motion to the proposed tax policy fell.