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Yorkton Council questions SAMA rep on assessments

Yorkton Council has questions about recent increases in the assessment of some properties when the latest numbers came out. So Monday, at a Committee-of-the-Whole meeting they were seeking some answers.
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Yorkton Council has questions about recent increases in the assessment of some properties when the latest numbers came out.聽

So Monday, at a Committee-of-the-Whole meeting they were seeking some answers.聽

Council had聽Irwin Blank,聽Chief Executive Officer, with the Saskatchewan聽Assessment Management Agency (SAMA) in Chambers to give a presentation and then answer questions regarding the recent assessment.聽

In chairing the meeting Councillor Dustin Brears said he welcomed the presentation as it would allow him to learn about the assessment process, adding he was not looking to hear a justification for the system, but rather how SAMA could 鈥渇ix the system that appears broken for the City of Yorkton.鈥澛

Blank began by noting the assessment of properties becomes the foundation on which municipalities collect property taxes, adding those taxes 鈥渁re the major single source of funding鈥 for most municipalities in the province.聽

In Saskatchewan property taxes raise about $2.1 billion for municipalities and the education system, about $1.4 billion to municipalities.聽

Blank also explained SAMA has existed since 1987 when it was created by the provincial government 鈥渋n consultation with municipalities at the time.鈥澛

As it stands聽聽SAMA carries out assessments for 757 of the 761 municipalities in the province with the cities of Regina, Saskatoon, Swift Current and Prince Albert doing it themselves but following the same rules and processes as SAMA, said Blank.聽

SAMA establishes assessments on approximately 869,000 assessable properties, about 7000 of those in Yorkton, said Blank.聽

Assessments are updated every four years, in accordance with regulations established by the province.聽

The goal is to establish 鈥淎 representative value of a property at a particular point in time,鈥 said Blank, adding for the recent assessment that point in time was Jan. 1, 2019. He added it is the same system used across Canada and through most American states.聽

Since the last assessment established values as of Jan. 1, 2015, the new numbers update values by four years, said Blank.聽

The value of a property is determined by three methods sometimes used individually, or in combination, including looking at sales of similar properties in a community, replacement cost appraisals, and to look at the income a property generates, explained Blank.聽

When it comes to comparisons Blank did note properties in other cities might be used, but never Regina or Saskatoon.聽

Blank said, as one might expect, some properties went down in value and others went up with the latest assessment, with some showing bigger swings.聽

When it came to questions from the City, they began with do you acknowledge that there are parts of the assessment system are broken and in need of review/improvement?聽

鈥淭here鈥檚 always something we can seek to improve,鈥 acknowledged Blank, adding the best process is to physically visit a property to look at whether it has been improved over four years, or is showing its age more.聽

Typically, SAMA does about 100,000 such inspections annually, with Yorkton expected to have a city wide review before the next assessment in four years, said Blank. He added at 100,000 annually it takes about 12 years to inspect all the properties in the province.聽

Council also asked the last assessment was dubbed a 鈥渃orrection鈥 year. Corrections happen because there were errors made. What errors and problems is SAMA currently dealing with and what is your plan to fix them? How do we make sure there aren鈥檛 hidden errors in the system right now that are skewing property values?聽

Blank said if someone believes an error has been made there is an appeal process and if the appeal finds an error the assessment is adjusted.聽

There was also a concern by Council the City of Yorkton received our assessment much later than other municipalities due to massive, incorrect valuations being identified. What went wrong that caused this inaccurate information to be generated? What steps are being taken to ensure this does not happen again in the future?聽

鈥淥ur objective as an organization is to deliver to the date鈥 wanted by the municipality. In Yorkton that was the end of February, but it was mid-March. 鈥淲e were late ... but not massively late.鈥澛

Blank added SAMA wants to advance delivery by six months with the next assessment cycle.聽

There was also concern several property owners in the city contacted SAMA to appeal their assessments and were told something similar to 鈥渢here is no point in appealing, because you will not win鈥. Can you please explain this unprofessional level of service being provided to our businesses in the City of Yorkton?聽

Blank said if anyone with SAMA is 鈥渁ctively encouraging people not to appeal ... it鈥檚 unprofessional and it has to stop.鈥澛

However, Blank said SAMA will explain that anyone who wishes to appeal needs evidence the assessment is incorrect and without that an appeal is not likely to be upheld.聽

Finally, Council asked is there a specific reason why we should continue with using SAMA vs moving to a different way of doing things?

鈥淭he assessment costs (through SAMA) are the lowest in the country,鈥 said Blank, who noted there is 100 years of assessment experience among staff at the regional office in the city.聽

After answering the questions Brears was still unconvinced.聽

鈥淚鈥檓 still not convinced the system is right for Yorkton,鈥 he said.聽

鈥淭he methodology doesn鈥檛 seem to be working here,鈥 echoed Mayor Mitch Hippsley. 鈥. . .To me it appears archaic.鈥澛

The presentation was filed by Council.

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