When annexation occurs, is one municipality compensated for tax revenues lost? How is that calculated?

Tax loss compensation is considered during the annexation process and is negotiated between the municipalities involved.   

Precedent has been set recently in several annexations in Saskatchewan and is based on factors such as:

• Tax revenues received,
• Expenses incurred for servicing, and
• Monies held in reserve by a municipality for future capital infrastructure improvements in an area to be annexed. 

Analysis is now underway to determine what a reasonable compensation amount to the RM of Edenwold should be given all of the factors above and recent precedents in Saskatchewan.  This study is scheduled to be completed in July, prior to compensation discussions between the Town of White City and RM of Edenwold.