Proposed Saskatoon property tax increase would help pay for bus rapid transit, curbside organics programs: report
City administration is proposing a property tax increase as planning for Saskatoon’s next multi-year budget begins.
In a preliminary report headed to the city’s governance and priorities committee on Monday, administration suggested an estimated rate for 2022 and 2023, based on growth and inflation, that covers the increasing cost of services.
This proposed property tax increase would amount to 5.96 per cent and 5.42 per cent during the respective years.
The suggested tax increase is not final and is only part of the early planning stages for the city's budget deliberations this fall.
“Administration has made efforts to limit the increase in budgetary expenditures with the aim to lessen the potential property tax increase while maintaining existing service delivery levels,” Chief Financial Officer Kerry Tarasoff said in a news release issued Thursday.
“Through the administrative budgeting process, the administration has already cut $7.5 million from the initial indicative budget for 2022. These adjustments reduced the potential indicative property tax rate by approximately three percentage points.”
According to the report, in order to maintain city services, including policing, at their current level a 4.82 per cent increase for 2022 and at 4.58 per cent increase in 2023 would be required.
However, the suggested increase of 5.96 and 5.42 per cent over the next two budget cycles would allow the city to fund the phase-in Bus Rapid Transit program and the city's new solid waste and organics collection program.
The preliminary rates do not include the expected short-term impacts of the COVID-19 pandemic.
“COVID is going to be having a long-term impact on our budgets for the next at least five or maybe more years,” Tarasoff said in a news conference Thursday.
City administration estimates the fiscal impact from COVID-19 to be $16.8 million in 2022 and $10 million in 2023.
To address this, the city will require spending restrictions and a fiscal transfer from either the federal or provincial government, according to the report.
“Basically asking departments to really curtail and watch the spending, and only spend items where it’s absolutely necessary, so any kind of discretionary spending, like maybe relook at training or reduce training,” Tarasoff said.
“We’re pretty confident that there’s going to be at least transit operating offsets coming. We’re looking for a little bit wider range of support as every municipality in Canada is facing the same issues we are.”
Other options offered
The report said the proposed increase option would allow the city to meet all of its existing service level and contractual obligations and would resolve the long-term structural budget issues in solid waste and phase-in for a city-wide organics program.
City council will finalize its decision in the 2022 to 2023 budget deliberations set for November.
The administration also outlines two other options.
One of them involves decreasing the property tax rate below the indicative rate, which would require reductions to the budget that could change existing service levels.
The other would add to the property tax rate above 5.96 per cent and 5.42 per cent for 2022 and 2023, which would provide the ability to consider implementing some of the other budget options.
Expected costs outlined
The report also outlines expenditure projections for the next two years.
Saskatoon Police Service estimates an expenditure increase of $4,665,500 in 2022 and $4,836,300 in 2023. However, it said it continues to work through the details of its budget and will refine it further before its presentation to the Saskatoon Police Board in August, according to the report.
The report goes on to discuss expenditure increases required outside of indicative rates.
City council previously approved a four year phase-in starting in 2020 to help address waste handling budget issues and to implement a city-wide organics program. The report said $2,225,600 is being added in garbage collection in 2022 and $2,183,700 is going towards the organics program in 2023.
As for the Bus Rapid Transit funding plan, the report said phase-in amounts of $687,000 and $95,000 are required, and that a revised funding plan will be reviewed at the 2022 to 2023 business plan and budget review.
CTVNews.ca Top Stories
'Nonsense:' Doug Ford slams lawsuits filed by Ontario school boards against social media platforms
Premier Doug Ford says that lawsuits launched by four Ontario school boards against a trio of social media platforms are “nonsense” and risk becoming a distraction to the work that really matters.
Several flight attendants from Pakistan have gone missing after landing in Canada
Multiple flight attendants from Pakistan International Airlines have abandoned their jobs and are believed to have sought asylum in Canada in the past year and a half, a spokesperson for the government-owned airline says.
Tipping is off the table at this Toronto restaurant
A Toronto restaurant introduced a surprising new rule that reduced the cost of a meal and raised the salaries of staff.
Rainfall warnings of up to 90 mm among weather alerts in effect for 7 provinces
Rainfall warnings of up to 90 millimetres, air quality advisories and other alerts have been issued for seven Canadian provinces, according to the latest forecasts.
Gangs netting up to US$3 trillion a year as Southeast Asia human trafficking becomes a global crisis, Interpol says
Human trafficking-fuelled fraud is exploding in Southeast Asia with organized crime rings raking in close to US$3 trillion in illicit revenue annually, the head of Interpol has said in comments that reveal the huge profits being earned by cartels.
King Charles calls for acts of friendship in first public remarks since Kate's cancer diagnosis
King Charles III gave public remarks for Maundy Thursday, addressing the importance of acts of friendship, following his and Catherine, Princess of Wales’ cancer diagnoses.
A dog and a bird formed an unlikely friendship. Their separation has infuriated followers
Peggy is a stout and muscular Staffordshire bull terrier, and Molly is a magpie, an Australian bird best known for swooping on humans during breeding season, not for befriending dogs. But in an emotional video posted online, Peggy’s owners announced that the animals had been separated.
Statistics Canada reports real GDP up 0.6% in January as Quebec strikes end
Statistics Canada says real gross domestic product grew 0.6 per cent in January, helped by the end of public sector strikes in Quebec in November and December.
Ukrainian child asylum seekers in St. John’s get class of their own
Roughly 50 children will gathered in a St. John’s classroom for the first time on Saturday for unique lessons on Ukrainian language, culture and history.