City Changes Policy Regarding Board Of Revision

Hoping for the correct decision and a reduction in appeals surrounding property taxes Council has decided to dispense with its part-time citizens Board Of Revision (BOR) and move to a professional firm specializing in providing BOR services.

The BOR is a quasi-judicial board which hears appeals from property owners that the assessments, provided by the Saskatchewan Assessment Management Agency (SAMA), are incorrect.

“Most of the cities have moved to an independent board, again nothing disparaging to those who have been working for us, when this (independent) board of revision it has become their job. Their line of business so as compared to the work we have been doing which is more of a seasonal thing these boards of revision are busy working at this on a full-time basis,” city manager Jim Puffalt explained to Council.

The report to Council said the services provided to the City by a private firm was “superior” to what the City’s part-time BOR had been providing.

“…City Administration believes that the level of knowledge and ability to adjudicate appeals that a privately contracted service provides is superior as the privately contracted service does this on an almost full-time basis as their occupation,” the report to Council read.

“We appreciate the work they (the appointed citizen BOR) but we think it is time to move into another area,” Puffalt said.

Puffalt went on to explain a high number of the present BOR decisions when appealed to the Saskatchewan Municipal Board ultimately come back with a decision favourable to the City.

“The Board Of Revision has been accepting appeals and then SAMA has had to go to the (Saskatchewan) Municipal Board and make the appeal and find out the determination of that…the majority of decisions have come back in the City’s favour,” he said.

In the last five years there has been 434 commercial tax appeals.

The City agreed to make adjustments on 87 appeals.

There were 64 appeals withdrawn with the Board of Revision dismissing 156 appeals. A total of 156 successful appeals were sent to the Saskatchewan Municipal Board for further appeal.

All appeals from the BOR in 2019 (14) and 2020 (20) were overturned by the Assessment Appeals Committee. In 2018, 15 of the 29 appeals were overturned and in 2017, 21 of the 28 appeals were overturned.

By having decisions come back in the City’s favour at the BOR stage there would be approximately $200,000 extra in City coffers as the property owner would have to pay the tax. The property tax payer would have to file an appeal with the Saskatchewan Municipal Board and be successful in order to not have to pay the amount. The onus on payment would shift if the independent BOR ends up resulting in more appeal decisions in the City’s favour.

The City has been budgeting the $200,000 as an expense for a number of years.

Cost For An Independent Board

The cost of the appointed BOR - including per diems and administrative support - cost the City close to $68,000 whereas Western Municipal Consulting (the firm selected to provide BOR services) would cost the City $91,800 plus the cost for administrative support would equal a total cost of about $128,000.

If the City were successful in appeals at the BOR level Puffalt said it would give the additional funding to pay for Western Municipal Consulting’s services.

Puffalt pointed out BOR decisions by an independent contractor would allow decisions to be made “in a timely fashion” and there would be no effect on the City’s business cycle as a result.

Mayor Thanks Departing BOR

Mayor Clive Tolley said he wanted to publicly state how much the City appreciated their efforts.

“I called Mr (Terry) Gabel (chair of the BOR) and other members of the Board Of Revision personally and thank them for their service but I wanted to do it publicly for their service for the City of Moose Jaw and they deserve our thanks,” Mayor Tolley said.

It should be noted until he ran for Mayor that Mayor Tolley also served on the BOR.

Councilor Heather Eby said she wanted to thank the BOR for their hard work as their was a lot of reading and other things involved in listening to property assessment appeals.

“It’s a big job,” Councillor Eby said.

She went on to state that the City could move back to the local appointee system depending on how Western Municipality Consulting worked out.

“We are trying to do something different to make a process that is sometimes very frustrating for people better,” she said, adding “if for some reason it does not work out we always have an option to go back in a year or two to a Board Of Revision as it currently looks.”

Where Are The Savings????

Councillor Kim Robinson questioned where the savings would be found in the policy change.

“I am a little bit confused if it is costing us $128,000 with this new WMC (Western Municipal Consulting) and it is only costing us $60,000 now where are we saving the money?” Councillor Robinson asked.

City Manager Puffalt responded the “cost savings would be the allowance we had for appeals that are going to the Board Of Revision.”

“We generally put in $300,000 and some dollars every year to our budget for it and $200,000 of that is for appeals to the provincial Municipal Board. So when we get those decisions overturned that money comes back to us. That is where the difference is,” Puffalt said.

He also said there may be the opportunity for efficiencies and cost savings by appointing an independent board.

Council approved Administration’s recommendation.