Saskatoon city administration recommends a 3.97 per cent property tax increase in 2020 and a 4.17 percent increase in 2021.
That includes a one percent increase for a new city-wide organics program as well as the waste and landfill operating deficit and funding shortfall.
The figures are part of the preliminary budget for the city’s first multi-year budget, planned for 2020-2021.
A one per cent property tax change is estimated to equal $2.44 million.
Administration projects a revenue increase of $22.66 million over the next two years, while total expenditures are expected to rise by $28.7 million.
Administration projects $17 million in inflationary increases of which 70 per cent is related to wages, utilities and reserve requirements.
The report also outlines two other tax options for City Council to consider. One includes a property tax increase of less than four per cent for the next two years. It would include money for the organics program, but the city would have to trim other costs to maintain current services.
The other option is a property tax higher than the recommended figures which would include additional funding for other city initiatives.
Administration is set to table the information at the Governance and Priorities Committee meeting on Monday.
Preliminary Budget Report highlights
- Revenue from user fees is projected to rise by about $510,000 mostly due to more revenue from the Forestry Farm Park and Zoo, the Saskatoon Fire Services agreement with the RM of Corman Park and the leasing of city-owned property.
- $13.58 million in additional revenue, mostly from an increase to municipal revenue sharing from the province.
- $4.99-million taxation revenue increase from the assessment growth base from new homes and commercial properties.
- The carbon tax is expecte to impact the operating budget by an estimated $1.6-million over the next two years
- Parking violation revenue projections are adjusted down by $700,000 to address a deficit.
