By TERRY PUGH
The base tax for homeowners and commercial properties in Warman will remain unchanged in the coming year, while the recreation levy will increase from $75 to $150.
Meanwhile, single-family and multi-family residential properties will be shouldering a slightly-increased share of the overall municipal tax burden, while commercial properties will see a small decrease.
Warman City Council voted at its meeting on Monday, May 26 to set the policy which will determine how the 3.98% increase in property taxes needed for the 2025 civic budget will be shared among the various property types.
Warman council adopted its 2025 civic budget at a meeting on December 16, 2024. The budget included $29.3 million in operating revenue; $21.1 million in operating expenses, and $20.4 million in capital expenditures.
At the May 26 meeting, City Council confirmed the $150 Future Capital Recreation levy for all property owners. The levy was implemented last year at a rate of $75, with a scheduled increase to $150 this year and in future years. Funds from the Future Capital Recreation levy will be used to help pay the cost of the current Warman Home Centre Communiplex expansion; and for other recreational capital projects down the road.
Council voted at the May 26 meeting to retain the current base tax for residential properties of $635 and $970 for commercial properties.
In a report to a Warman City Council committee of the whole meeting the previous week, on May 20, the city administration noted the base tax is calculated to recover a portion of the net costs associated with transportation, policing and fire services. In 2024, the base tax covered 75% of this shortfall.
The administration report also noted that because 2025 is a revaluation year for the Saskatchewan Property Assessment Agency (SAMA), the city has seen a shift in assessed values for various property classes. Residential and multi-residential properties experienced higher assessment increases than the commercial class.
“To mitigate the resulting tax burden on residential and multi-residential property owners, administration is proposing tax policy options that include increasing the commercial mill rate factor,” stated the administration report. “This approach helps maintain a more equitable distribution of the tax burden across all property classes.”
At the May 20 committee ofthe whole meeting, councillors were provided with four tax policy options from administration.
“There are a lot of moving parts,” said Warman Mayor Gary Philipchuk during the May 20 council discussion. “There are challenges regardless of which direction we go.”
Councillor Kevin Tooley noted that last year, council was able to keep the commercial mill rate factor at a rate lower than neighbouring municipalities, but with rising costs, that will be more challenging this year.
Councillor Tracy Johnson expressed concern that the bulk of the tax burden – over 76% – falls on residential properties.
Philipchuk agreed, but added that as the commercial sector in Warman grows, it will be able to absorb a larger share of the overall tax burden.
“We’re still evolving as a city to attract businesses,” said Philipchuk. “If we had no businesses, the tax burden on the residential sector would be 100%.”
The overall mill rate in the coming year will be lower than last year. Council opted to set the mill rate for 2025 at 6.15. In 2024, the mill rate was 6.25.
Under the 2025 tax policy, the commercial mill rate factor is 1.06, up from a mill rate factor of 0.99 in 2024. The mill rate factor for single-family residential is 1.00, while the mill rate factor for multi-residential is 0.96.
Under this scenario, according to an analysis by the city administration, commercial properties will see their share of the tax burden decrease from 12.36% to 12.04%; while single-family homes share of the total tax burden rises from 76.77% to 76.99% and multi-residential properties’ share rises from 10.61% to 10.73%.
The administration report stated the new policy “balances equity across property classes, maintains stable revenue generation, and moderately adjusts the commercial and multi-residential mill rate factors while still maintaining competitive tax rates in the region. It also provides a framework that accommodates assessment shifts from the recent revaluation.”