Province willing to listen to Sask. cities on new taxes, revenue
CBC
Saskatchewan's government will consult with cash-strapped cities and municipalities seeking more options to pay for services, the province says.
In January, Regina city council unanimously passed four motions in collaboration with the Saskatchewan Urban Municipalities Association (SUMA), to alleviate revenue issues after the city passed a budget in December with a 10.9 per cent property tax increase.
One of the motions asked for "alternative revenue options," including "new or improved taxation alternatives."
A response this week from the provincial government to CBC suggested decision makers are receptive to suggestions from municipal governments.
The emailed response said the province regularly reviews the rules for municipalities and makes changes, as it did last fall.
"For future reviews, all cities and municipalities are welcome to propose additional revenue sources and taxation arrangements and the province will engage with them on exploring alternatives," the email says.
But the province also pointed out that municipalities already have the power to introduce "special taxes," as well as user fees and charges for services.
SUMA CEO Jean-Marc Nadeau said in an email that the organization works with any municipality that wants help drafting resolutions. It called municipal finance an issue of "critical importance."
As for the other three requests made by Regina council, the province expressed a less receptive attitude.
Regina city council also asked the province to either collect its share of property taxes (the education portion), which is one of the highest in the country collected for a province, or compensate municipalities for doing so.
The province says the current system serves residents the best; it also noted that a cut of the provincial sales tax is shared with cities.
The province also dismissed Regina council's requests for an exemption from the PST on construction for municipalities, to help facilitate infrastructure projects, and restoration of municipal surcharges for electrical and natural gas revenues from Crown corporations.
Saskatoon Mayor Cynthia Block, who has said the property tax model for funding municipalities is obsolete, said requests like the one from Regina city council represent an "urgent cry for help."
Block pointed out in a recent interview that cities in Canada own and maintain 60 per cent of the nation's infrastructure but get eight per cent of the tax revenue.
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Saskatchewan's government will consult with cash-strapped cities and municipalities seeking more options to pay for services, the province says.
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