Saskatoon projects property tax hike near five per cent

Some councillors say it’s still too high and warn that tough decisions needed

Saskatoon Mayor Charlie Clark says city council will do what it can to reduce the proposed 2018 property tax increase of 4.96 per cent.

The City of Saskatoon’s 2018 preliminary budget, released Monday, proposes a 2.79 per cent increase (or $13.3 million) in spending, which leaves the city with an overall shortfall of $10.9 million. The property tax increase would make up that shortfall.

Most of the tax increase can be traced back to the March 22 provincial budget, which unexpectedly slashed grants-in-lieu, increased the provincial sales tax and reduced revenue sharing.

“This budget’s not a very sexy budget,” the city’s chief financial officer Kerry Tarasoff told reporters Monday.

The property tax increase is slightly higher than this year’s 4.82 per cent increase, which was rejigged in April from the original 3.89 per cent increase after the provincial budget created a revenue crater.

The proposed 2018 increase, which must still be scrutinized and approved by city council, is worth $86.37 for an average home assessed at $371,000. The original increase proposed in May was slightly less than seven per cent.

“It’s higher than I’d like, there’s no question, especially given the circumstances we’re in,” Clark told reporters on Monday. “I know why we’ve got to this point and we’re going to still have some discussions about what we can potentially do to bring it down.”

The spending increase is the smallest in the last decade, but it may not be enough for city council. Several councillors have already signalled that a property tax increase of nearly five per cent is unacceptable and tough decisions are coming.

Coun. Bev Dubois asked the administration to investigate the possibility of levying property tax on the airport. Other Canadian municipalities, including Regina, charge their airports property tax, Dubois said.

The budget proposal includes nearly 30 new full-time staff positions, some of which were expected, such as nearly six full-time equivalents for the new Remai Modern Art Gallery of Saskatchewan. The gallery will operate for a full year for the first time in 2018.

The new 2018 full-time equivalents include 3.4 police officers. Two of those positions are funded by the provincial and federal governments and the rest represent the cost of employing officers added midway through 2017 for an entire year.

The Saskatoon Police Service, for the first time since 2010, is not seeking any new patrol officers.

City hall finance officials are proposing further measures to council that will reduce the property tax increase to 4.59 per cent. They include discontinuing the city’s printed annual Report to Citizens and focusing on digital platforms instead.

The city’s operating budget has risen to $491 million. The capital budget, 70 per cent of which is funded through reserve funds, jumps to $295.4 million, up from $261.4 million this year.

When the utilities operating budget of $352.3 million is added, the city’s total budget for 2018 is projected at $1.14 billion.

In addition to the property tax increase, some fee increases are proposed, including a $20 increase for the subscription service to collect leaves and grass. The increase applies to the rate from May to December, which jumps to $75, but only for users who do not register early.

Indoor rink admissions are projected to go up by $0.25, while admission to the Forestry Farm Park and Zoo is proposed to rise by $0.50 for adults, $0.25 for youth and $1 for a family.

Several fee increases for services at the Gordon Howe Campground are also proposed Saskatoon Light & Power rates are expected to increase by five per cent in 2018.

The city has no plan to increase recreation facility admission fees, bus fares, parking rates or landfill fees in 2018.