Fundamental Progressive Change
Fundamental change, pledge to the city, tax reform, long-term debt obligations, budget surpluses and deficits, financial emancipation, true source of political authority/power, democracy and the antithesis of democratic ideals, progress. Updated: Sept 12, 2024.
This is the fourth and final paper in a series of papers that serves as the official political platform for my candidacy as Mayor of Saskatoon in the November, 2024 civic election.
Executive Summary
I can and have predicated my entire political campaign, for Mayor of Saskatoon, on a platform of fundamental and progressive change.
Although I have been cautioned, advised that I should first seek a seat on Saskatoon City Council before making a run for Mayor of Saskatoon; the problem is that the City of Saskatoon cannot afford another 4 more years of the same. Nothing will change, nothing will get done if I assume the inert position of a member of city council, except maybe for new and more radical forms of political infighting.
The residents and taxpayers of the City of Saskatoon have spoken; they demand fundamental change. No longer can inert city councils’ nickel and dime taxpayers with the imposition of higher property taxes, year after year; whereas, this go to source of funding for the City is and always was destructive and unsustainable. And, the people of Saskatoon are eagerly interested to know more about how fundamental change is possible, which is where my vision for Saskatoon comes in.
To the voter and taxpayer; the residents of Saskatoon, you get to decide the direction the City of Saskatoon is headed.
You are the true source of political power in Canada, not the federal or provincial governments.
Something has to give and it is not the taxpaying residents of the City of Saskatoon.
Preliminary Issue
[1] As a preliminary issue; I thought it necessary to give everyone the breakdown of how the law, in Saskatchewan, operates. And, although I receive my mandate to lead directly from the people of Saskatoon. There is no reason to believe the province will allow this issue to go down without a fight but thankfully for us in the cities.
[2] 2024 is a provincial election year; the Sask. Party is in a weakened state and it is advantageous for any city in Saskatchewan to forge a new path ahead and at the expense of the Sask. Party. The current provincial government cannot afford to lose any votes – political capital – by pissing off the voters in the cities, including Saskatoon. The exact same can be said about the federal government; the feds cannot afford to piss anyone off going into an election next year.
[3] The federal and provincial government are weak and ripe for the taking. If the time was ever right for making fundamental change – now is that time.
[4] In fact, if a candidate for Mayor of a City, such as myself, decides that effective fundamental change is needed; that candidate is well within their rights of informing the resident-tax payers of any city, anywhere in Canada, about the unsavoury nature of how cities are forced to subsist as inert extensions of the provincial governments.
[5] Politics is about power, not fairness.
[6] There is nothing fair about Cities shouldering the burden of education in the province of Saskatchewan. In fact, according to the Sask. Party governments own numbers; the provincial property tax levy was only able to bring in $780 million dollars, in 2023, which was $20-something million dollars less than what the province budgeted. This is irrefutable proof that the provincial property tax levy is deeply flawed, unsustainable and that the service delivery for education needs a better source of funding.
The Resulting State (composition)
[7] City councils throughout Canada are set up for failure by the provinces:
“Municipalities are unlike provincial governments as far as important aspects of constitutional status are concerned. The provinces derive their powers from the Constitution and hence their permanence and autonomous jurisdiction are guaranteed. Municipalities, on the other hand, draw their powers from provincial law, which can be changed by a majority vote of the legislature.” (1)
I am not trying to make the argument that municipalities should receive constitutional status like the federal or provincial governments; this approach was already attempted and determined that constitutional status: “does not extend to municipal elections”. Toronto (City) v. Ontario (Attorney General), 2021 SCC 34 at paragraph 45. (2)
Source of Authority
[8] In fact, we do not need to have any of these conversations or arguments as what I am saying is that the: Source of authority comes directly from the people. Nothing is in dispute; the federal and provincial governments continue enjoying their constitutionally entrenched status but all political authority, even for the federal and provincial governments – comes directly from the people – the resident-tax payers of the cities. But, what does valid provincial legislation say?
Provincial Legislation
The Education Property Tax Act
Definitions
2 In this Act:
“school tax” or “education property tax” means the portion of property tax payable to the Government of Saskatchewan;
Levy of school taxes
9(1) The council of every municipality shall levy the tax at the rates mentioned in section 6 with respect to taxable assessments within it.
(3) If the council of a municipality fails to levy the tax mentioned in subsection (1) at the rates as determined pursuant to subsection 6(1), the municipality is liable to the Government of Saskatchewan for:
(a) the amount that the municipality has failed to levy; and
(b) interest on that amount at the prescribed rate and calculated in the prescribed manner.
Actions to collect taxes
16(1) The Government of Saskatchewan may enforce the collection and payment of school taxes, penalties and interest in accordance with:
(a) this Act;
(b) the regulations; and
(c) sections 13 to 23 and Part III of The Revenue and Financial Services Act and the regulations made pursuant to that Act.
(2) All amounts collected pursuant to this Act and sections 13 to 23 and Part III of The Revenue and Financial Services Act with respect to school taxes must be deposited in the general revenue fund.
Payment to the Government of Saskatchewan of moneys otherwise payable to a municipality
17(1) The minister may act pursuant to subsection (2) if the minister is satisfied that a municipality:
(a) has failed to levy or collect the school taxes as required by this Act;
(b) has failed to pay to the Government of Saskatchewan the school taxes levied or collected as required by this Act; or
(c) has failed to provide the education property tax returns as required by this Act.
(2) In any circumstance mentioned in subsection (1) and notwithstanding any other Act or law, the minister may:
(a) retain, from moneys otherwise due or payable to the municipality by the minister pursuant to an Act that the minister is responsible to administer, an amount equal to the amount of school taxes that are required to be levied, collected or paid, together with interest at the prescribed rate and calculated in the prescribed manner; and
(b) refuse to pay, suspend or adjust moneys otherwise due or payable to the municipality by the minister pursuant to an Act that the minister is responsible to administer.
Municipal council member liability re Government of Saskatchewan
18(1) In this section, “certificate” means a certificate that has been issued by the minister and filed with the court pursuant to section 19.
(2) Subject to subsections (3) and (4), if a municipality has failed to levy or collect school taxes or has collected but failed to pay school taxes to the Government of Saskatchewan as required pursuant to this Act, the members of council at the time the municipality was required to collect or pay school taxes to the Government of Saskatchewan are jointly and severally liable, together with the municipality, to pay the amount of the school tax.
(3) A member of council is liable pursuant to subsection (2) only if:
(a) a certificate has been issued against the municipality by the minister for the amount of the municipality’s school tax liability and the minister has been advised that the certificate is wholly or partially unsatisfied; and
(b) the member of council knowingly:
(i) voted for a bylaw or resolution that resulted in the municipality failing to levy, collect or pay to the Government of Saskatchewan the amount of school taxes as required by this Act and any interest and penalty on that amount; or
(ii) took any other action that resulted in the municipality failing to levy, collect or pay to the Government of Saskatchewan the amount of school taxes as required by this Act and any interest and penalty on that amount.
(4) If a municipality’s liability to levy, collect and pay school taxes is reduced by the payment of any amount, the member of council’s liability pursuant to subsection (2) is reduced by the same amount.
Subserviance to the Province
[9] Provincial legislation says the Cities are subservient to the province. The way the laws operate, in Saskatchewan, is in a straitjacket fashion, whereby the cities are compelled to do whatever is in the best interests of the Sask. Party government. Not in the residents of the city’s best interests; in fact, upon a plain reading of the law, it is evident that the Sask. Party government expects city councils to only make it look like they are democratically elected and accountable to the people of the city. But, ultimately, the cities are accountable to the province:
“…if a municipality has failed to levy or collect school taxes or has collected but failed to pay school taxes to the Government of Saskatchewan as required pursuant to this Act, the members of council at the time the municipality was required to collect or pay school taxes to the Government of Saskatchewan are jointly and severally liable, together with the municipality, to pay the amount of the school tax.” Section 18(2) of The Education Property Tax Act above.
[10] Consider, the provincial government makes it an offense for any city council to knowingly do anything that goes against the best interests of the province. But, this does not make any sense; for example, if a democratically elected city council, with a defined mandate to lead, is elected to form a competent local government. How can the province try and punish a city council for doing what the electorate – the city residents and taxpayers want?
Antithesis of Democracy
[11] Is the Sask. Party government going to try and punish the public at large for voting a certain way – voting for fundamental change at the city level? No, not even the province would dare try and punish the public at large. Nevertheless, the province does retain the ability to undermine democratically elected city councils through simple majority votes of the legislature.
[12] Evidently, provincial legislation is diametrically opposed to the principles of a free and democratic society. That is to say, the provincial legislation is ultra vires (beyond the legitimate powers) of the province when a provincial government can simply vote away a pesky city council that disagrees with the province.
[13] According to the federal and provincial governments; whenever the city resident-taxpayers vote for a city council, this vote does not matter because city councils owe allegiance to the provincial government and not the voters of the city. This is the practical effect of provincial legislation over the cities.
As a Result of Provincial Legislation
[14] As a result, two things emerge:
1) In spite of being democratically elected by city resident-tax payers; city councils cannot do what is in the best interest of the city because of how the laws operate. And,
2) This is why city property taxes keep increasing at unsustainable rates of 6 or more per cent year after year.
Since the Sask. Party government refuses to end corporate welfare; advocate for the public interest and collect a fair share of potash royalty and tax revenues, in addition to discontinuing the use of a provincial property tax levy. City councils cannot deliver better results for city resident’s benefit, which is exactly why progressive, fundamental change is necessary.
Knowledge is Power: The More You Know
[15] For the Sask. Party government; it is far easier to continue nickel and diming the ignorant (unknowing) resident-taxpayers than it is to dare upset the delicate system of allowing corporations to continue exporting record profits to shareholders abroad. But, make no mistake; the true source of political power/authority, throughout Canada, comes directly from the people –the resident-tax payers of the cities. And, the more information available to resident-tax payers; the more informed of a voting decision can be made by the public.
Political Epiphany
[16] However, once the resident-tax payers of the cities recognize that they are the true source of political authority/power. The sooner new, competent city councils can be formed and actually start delivering much needed changes to the way the cities operate throughout Canada. The true source of political power has always come from the people – the resident-tax payers of the cities – not the federal or provincial government.
A Lasting Legacy
[17] In hindsight, the Sask. Party governments lasting legacy will be one of: 1) ineptitude; 2) an abysmal record of running up deficits by tens of billions of dollars, 3) leavings tens of billions of dollars in royalty and tax payments, in the hands of a few multinational corporations, 4) incompetence and 5) ultimately believing that they had nothing to worry about in the upcoming 2024 provincial election.
[18] However, it is with this very complacency; hubris that will end the Sask. Party government once and for all.
What does Effective Leadership look like?
[19] A leader should be strong; compassionate and considerate of the unique needs of others, including for the needs of everyone equally in society.
[20] Under my leadership as Mayor of Saskatoon; we do not need, nor require the blessing or consent of the provincial government. In fact, the City of Saskatoon is empowered to act in the public interest and by any means necessary to effect fundamental and sustainable change, which is what I will deliver as Mayor of Saskatoon. And, the way I see it; currently there are only 3 possible outcomes for the City of Saskatoon going forward under my leadership.
Possible Outcomes
[21] The 3 likely outcomes for the City of Saskatoon moving forward:
Outcome 1: The City of Saskatoon refuses transfer payments totalling $138.1 million dollars from the federal and provincial governments. The City of Saskatoon would have adjusted revenues of $996.6 million dollars, with operating expenses of $988.6 million dollars which leaves the city with a surplus of $8 million dollars in 2023.
Outcome 2: The federal and provincial governments respect the City of Saskatoon’s autonomy and contribute transfer payments of $138.1 million dollars to the City, unconditionally. Transfer payments are unconditional; there will be no negotiations, concessions or compromises to be found. The City of Saskatoon would continue to have total revenues of $1,134.7 billion dollars, with operating expenses of $988.6 million dollars, which leaves the city with a surplus of $146.1 million dollars in 2023.
Outcome 3: The federal government continues providing minimal transfer payments of $60.6 million dollars to the City of Saskatoon. The City of Saskatoon foregoes the $77.4 million dollar transfer payment from the province of Saskatchewan. And, the City of Saskatoon has total adjusted revenues of $1,057.3 billion dollars, with operating expenses of $988.6 million dollars, which leaves the City of Saskatoon with a surplus of $68.7 million dollars in 2023.
All outcomes are contingent on the City of Saskatoon keeping the $311.1 million dollars the City paid in taxes to the federal and provincial government in 2023, which is exactly what we are doing once I am elected as Mayor of Saskatoon.
The City of Saskatoon has a Provincial Government Problem
[22] As you can plainly see, the source of the City of Saskatoon’s financial misfortunes are as a direct result of federal and provincial government taxation. But, in the Sask. Party governments case; the province wants all the benefits afforded by the constitution but without actually delivering on those same constitutional responsibilities. The City of Saskatoon has a provincial government problem.
[23] Again, there will be no compromises; boycotts, concessions or negotiations, nor common ground to be found with the federal and provincial governments. This is not a protest; a protest implies that the federal and provincial governments still retains some sort of authority or control over the City of Saskatoon. And, with my election as Mayor of Saskatoon; this sends a clear and unambiguous message that the City of Saskatoon resident-taxpayers have decided to forge a new path going forward – fundamental progressive change.
What I will do as Mayor
[24] As Mayor of Saskatoon and armed with a mandate to lead; I will put the best interests of all residents of Saskatoon first.
[25] Once elected as Mayor of Saskatoon; I will deliver wholesale, fundamental change to the way the City of Saskatoon currently operates. No longer will City Councils continue to nickel and dime city residents to meet the needs of lazy federal and provincial governments that do nothing but take from the cities and for granted.
[26] However, for the sake of argument, in the case of the Province of Saskatchewan; the Sask. Party government is in a far better financial position than all other provinces to end corporate welfare and make lasting financial changes for all residents of Saskatchewan’s benefit.
[27] The only thing that is required is for the Sask. Party government to actually materialize a backbone and tell corporations that they will be taxed accordingly. And, if the Sask. Party government is too weak; refuses to advance the public interest. The resident-tax payers of Saskatchewan will need to find and form a new competent government, in the 2024 provincial election, moving forward.
[28] The Province of Saskatchewan and the City of Saskatoon cannot afford more of the same; another 4 years of a Sask. Party government. Everything is about timing and the time is ripe for fundamental progressive change.
[29] When the taxpayer speaks with their vote; the federal and provincial governments must listen.
Pledge to the City of Saskatoon
[30] As a direct result of this Political Platform of fundamental progressive change (emancipation). Going forward for the year of 2025; the City of Saskatoon, under my direction, will maintain the same property tax levels as 2024 but with only a modest property tax increase of 3 or 4 per cent per year. This will provide peace of mind and stability for the resident-tax payers of the City of Saskatoon during my tenure as Mayor of Saskatoon.
[31] How can I offer the City of Saskatoon property tax increases of 3 or 4 per cent per year going forward? That answer is simple: Anything is possible with the city resident-tax payers’ support, however, what is required is a leader willing to make fundamental progressive change.
Legislative Reform
[32] I will rewrite the laws that govern how the City of Saskatoon operates; under my leadership, City Council will develop and adopt progressive laws that allow for the City to:
1) Keep 100% of our tax dollars in Saskatoon (no more subsidizing the province for the service delivery of education and no more miscellaneous payments to the Receiver General for Canada).
2) Allow for the City of Saskatoon to control long-term debt obligations.
3) Allow for the City of Saskatoon to plan for operating surpluses or deficits.
City Council is ultimately accountable to the people; the resident-tax payers of Saskatoon and under my leadership as Mayor, council will do whatever is reasonable, in the circumstances, to ensure the City of Saskatoon competently and professionally discharges their duties owed to the resident-tax payers of Saskatoon, not the Sask. Party government.
[33] As part of my campaign; I further pledge to get rid of subscription-based city services to garbage, recycling and organics. Although this only represents a modest reduction of $23.66 a month or $283.92 a year in taxes; this represents a shift in the right direction for offering city residents a reduction in property related taxes. Garbage, recycling and organics fees should be included in the yearly property tax, not as a separate monthly subscription to city services.
Housing Solves Homelessness: City Housing Corporation
[34] Under my leadership and direction, as Mayor, the City of Saskatoon would strongly consider building and maintaining residential rental units to help alleviate the ongoing housing crisis. And, as the supply of City owned housing units increases; the rental market prices should adjust to more long-term sustainable levels.
[35] Although the City cannot force private corporations to do anything in the public interest; nor can the City advocate for any sort of rent control either. The City can consider a long-term solution of building and maintaining quality rental housing, with fair rent prices, for low to moderate income families to call home. But, currently there is no legitimate reason, except maybe for money, why the City of Saskatoon could or should not consider starting its own autonomous housing corporation.
[36] These rental units would be geared towards low to middle income individuals and families that need long-term safe, affordable and stable housing. The City rental units would be built in Saskatoon’s newest neighbourhoods, which would help alleviate some of the stress on the rental market. And, as part of an ongoing housing solution, initiative; the city could provide ongoing money of up to $25 million dollars a year, over a 4 or more-year period, to help build and maintain adequate housing for families.
[37] For example, the City of Saskatoon’s autonomous housing corporation could build 3-bedroom, 1 and ½ bathroom townhomes or 4-bedroom, 2-bathroom duplexes with 5 appliances with rents around $1500.00 dollars a month. In addition to midrise (5 or more story) apartment complexes being built throughout the city; these units could be 1-bedroom, with one bathroom and 3 appliances, 2-bedrooms, with one bathroom and 5 appliances or 3-bedroom units, with one and a half bathroom and 5 appliance units.
[38] Ultimately, the residents of the City of Saskatoon would be the shareholders and beneficiaries of any profits made from an independent housing corporation. In addition to the City being able to help alleviate the ongoing housing crisis; however, in the future and when the housing corporation starts delivering profits. The City of Saskatoon could apply some of the profits to further bring down yearly property taxes for the city resident-tax payers. A formula would need to be developed to take into consideration stuff like the current rental market conditions, of available rental units, average price of rents, housing corporation needs, profit levels, among other things.
[39] Unfortunately, this housing initiative would not be geared towards low-income individuals who are homeless, facing homelessness and/or have complex needs of mental health and addictions issues. This requires the federal and provincial government to take charge and offer much needed solutions to address the ongoing mental health, addictions and homelessness crisis in society. But, the current approach of doing nothing; political infighting is not working.
Constitutional Division of Powers
[40] The cities throughout Canada do not have this authority, which is the exclusive jurisdiction and responsibility of the federal and provincial governments.
Fundamental Progressive Change
[41] Vote for fundamental progressive change; vote Mike Harder for Mayor of Saskatoon.
Mike Harder
References
(1) The Canadian Encyclopedia. “Municipal-Provincial Relations”. Article by: Allan O’brien. Published on: February 7, 2006. Last edited: December 14, 2013. Retrieved from: https://www.thecanadianencyclopedia.ca/en/article/municipal-provincial-relations
(2) Toronto (City) v. Ontario (Attorney General), 2021 SCC 34 at paragraph 45.
