Early numbers for next year’s city budget project Saskatoon residents could see a property tax hike between four and 4.5 per cent, despite increased revenue projections of $11.2 million.

Mayor Charlie Clark cautioned on Tuesday the numbers are very preliminary and will be refined and possibly changed over the next several months.

“We were not approving that today,” Clark said during a governance and priorities meeting at city hall.

A report from civic administration says expenses for the city in 2019 are expected to rise by $18.6 million, a 3.8 per cent jump over this year’s budget. The projected expenses will leave a shortfall of $7.4 million, which would be filled by the property tax increase.

The report says a bulk of the new revenues will come from the province returning the grant-in-lieu of taxes through SaskEnergy. The report pegs that number to be approximately $5.37 million. Saskatoon Water and Saskatoon Light and Power are also expected to bring in $2.71 million in extra revenue, partly from grant-in-lieu of taxes.

An additional $3.1 million in revenue is forecast from growth in the property taxation assessment base from new homes and commercial buildings.

But non-tax revenues are not meeting projections,which is adding cost pressures for the city, according to the report.

The landfill posted a $1.28-million deficit in 2017, while Saskatoon Transit finished last year with a deficit of $1.81 million. The 2019 budget will adjust cost and revenue projections to avoid city programs running a deficit.

Administration is recommending an additional $1.50 million for the Building Better Roads Program to maintain current service levels, $670,000 to maintain assets such as the Children’s Discovery Museum City Shared Space contribution as well as increasing reserve funds for new spray pads, the rotary park gazebo, Cairns Grandstand and new play structures.

Nearly half-a-million dollars would be allocated for transit to accommodate service for new neighborhoods. And administration is requesting $255,000 to maintain resources for parking enforcement.

Clark said the new revenues from assessment growth and grant-in-lieu of taxes will be helpful, but adjusting for cost pressures will be a challenge.

“We’re being clear and up front on both the cost and revenue sides we’re facing in order to have a transparent budgeting process,” Clark said.

City administration says even without additional money for roads, parks and other assets, the city would still need to increase property taxes by 3.16 per cent to maintain current service levels.

The Saskatoon Police Service is also in the early stages of preparing for its 2019 budget. The report from administration says the SPS is currently projecting a budget expenditure increase of 4.36 per cent relating to inflation and maintaining the current service level.

The 2019 preliminary budget numbers from city administration and the police service will be fine-tuned over the next several months, with final deliberations set for November.