City could see 4.05 per cent tax increase

Preliminary city budget ‘status quo’, sees host of shortfalls across board

The City of Moose Jaw could be facing some serious belt-tightening in the upcoming year based on the operating and capital budget estimates presented to city council on December 18.

Despite presenting a ‘status quo’ budget, the amount of reduced revenue and increased expenditures currently sees shortfalls almost across the board.

The planned operating budget sees a deficit of $1,090,138 and would require a 4.05 per cent increase in municipal taxes. The report says “the city will need to take a close look at expenditures to ensure all monies are being judicially spent and it will be necessary to increase taxation as well as utility rates.”

The capital budget — comprised of the general reserve, water utility reserve, sanitary sewer utility reserve and land development reserve — took a major hit from the provincial budget in the form of a $2,082,393 reduction to grants-in-lieu and PST costs. Replacing those losses would result in a 7.74 per cent tax increase. The end result will see less infrastructure work being completed annually. When it comes to the unfunded capital budget, involving projects needed to be completed in the next 10 years, the numbers are stunning: $178,705,012 in capital projects that will soon become priorities and need completion and over $400 million over the next 20 years. Funding the projects would require a 66 per cent municipal tax increase — a number the report admits is unsupportable, meaning the city will need to look to higher levels of government for funding.

Mayor Fraser Tolmie admits the budget doesn’t carry a lot of good news when it comes to tax increases and such, but the administration is looking to put the funds to good use.

“Obviously we faced some challenges in last year’s budget, which was a tough pill to swallow as a new council,” Tolmie said shortly after city council completed its fi- nal meeting of 2017.

“We know this past year that we’ve invested 10 times the amount of capital in infrastructure upgrades than what we did three years ago. So the money is being used wisely, but we’re looking to reduce the burden as much as we can on the taxpayers. We want to make sure the money is going wisely to upgrades.”

The bad news didn’t come as a surprise to council — the writing has been on the wall ever since the province’s changes to franchise fees and grants-in-lieu. “This has impacted the City of Moose Jaw greatly, and when you lose that amount of revenue, that hurts the citizens and it’s a direct impact of 18 per cent,” Tolmie said. “So you either raise taxes 18 per cent or you cut services by 18 per cent. So we’ve been trying to find a balance. It’s been a challenge, the administration has come up with some great recommendations; last year was a 6.24 per cent tax increase, this year that could change. We just have to see where council wants to go with it.” Tolmie stressed this is just the earliest of stages in the budget process, with a host of changes and improvements possible and even likely before anything is final- ized in the new year.

“We’re going to be sitting down beginning in January and going over the budget, seeing what else is out there and what else the administration is going to bring forward,” he said. “Our hopes are always high, and this city is moving in the right direction in getting things done. So I think we should pat ourselves on the back and take the wins when we can. I’m proud to be able to say that in our first year.”