WHEREAS under section 8.1 of The Municipalities Regulations, the gravel extraction fee of $0.105 per cubic yard is insufficient to support the repair of infrastructure and loss of non-renewable resources;

BE IT RESOLVED that SARM lobby the province to raise the gravel extraction fees to be more equitable for the loss of infrastructure and non-renewable resources.

Response from Honourable Darryl Hickie, Minister of Municipal Affairs:

Gravel extraction licence fees have recently been increased. The maximum fee increase is based on the annual percentage change for the “all-items” Consumer Price Index (CPI) for Saskatchewan for the year, two years before the first year the rate comes into effect. The rate increase for 2012 represents CPI inflation rates of 1.0 and 1.4 percent in 2009 and 2010 respectively.

The original rationale for the fees is that they be charged in lieu of property taxes on mobile gravel extraction equipment. They are not expected to cover costs for loss of infrastructure and non-renewable resources.

The maximum gravel extraction licence fee rates for 2012 and 2013, effective January 1, 2012 is:

• $0.149 per cubic metre
• $0.113 per cubic yard
• $0.080 per ton
• $0.074 per ton

Municipalities have the authority to pass a bylaw to charge gravel crushers and extractors a gravel extraction licence fee in replacement of property tax on extraction equipment under section 9 of The Municipalities Act.

The maximum fee a municipality may implement is calculated by a formula set out in section 8.1 of The Municipalities Regulations. The formula was established in 2008 to provide automatic biennial updates of the maximum rate as agreed upon by SARM and RMAA and industry stakeholders.

A draft bylaw containing the updated rates is available on the Municipal Affairs website at www.municipal.gov.sk.ca.