There are nearly 10,000 adults living in Estevan. They have a variety of opinions on different issues, yet they’ll agree on one thing: they don’t want higher taxes.
They didn’t get their wish once again this year.
Estevan city council passed its mill rate at Monday night’s meeting, later than normal thanks to the delays in the assessment role from the Saskatchewan Association of Management Agencies. And as expected, there was a one per cent increase in property taxes.
The property tax increase was revealed during budget deliberations early in the year. Council said from the start that it wanted to keep its property tax increase to a minimum this year, but it wasn’t a guarantee.
Council wanted to keep the property tax increase to three per cent last year, but those plans were scuttled after the provincial budget came down and revenues to the city were cut. Council eventually approved an eight per cent property tax hike.
So council understandably wanted to keep any property taxes to a minimum this year.
But one has to wonder how much the city can do with a one per cent property tax increase.
There is a significant portion of the population who believes that property taxes shouldn’t go up. What they don’t understand is that property taxes are easily the largest percentage of revenues for a municipality.
Yes, council receives revenues from fees for services, grants and the provincial government. But property taxes are the bulk of the revenues, not just in Estevan, but virtually every municipality in the province.
If property taxes stay the same, it means job losses and reduced services. If they don’t go up over an extended period of time, then there will be negative repercussions for the community.
Your property taxes go to road and sidewalk repairs, parks, recreation, beautification, police, fire and a whole lot more. And there usually a rising cost associated with those services.
A significant portion of taxes also go to schools.
While many are always opposed to all property tax increases, there’s also that portion of the population that says they don’t want to see property taxes go up, but they understand it if the money goes in the right direction. Put it to road repairs and other infrastructure needs, and they’ll understand. But if it goes to big salary increases, internal improvements or pet projects, the frustration sets in.
Tax increases that occur in an incremental amount, and keep up with the rising cost of doing business might be grudgingly accepted.
After all, property tax increases are better than crumbling infrastructure, understaffed departments and deteriorating parks.
Unfortunately, a one per cent property tax increase seems like a token amount. Ultimately, council would have been better off approving a two per cent or a three per cent increase, or not having a property tax increase at all.
It’s been more than a decade since Estevan residents were spared a property tax increase. We’re not saying this would have been the year to do it, but would there be much of a difference between a flat-lined mill rate and a one per cent increase?
You just can’t do much at all with a one per cent property tax increase.
