Avoiding 4.96% tax hike a ‘big challenge’ for council

City councillors warn tough decisions will be required to avert a 2018 property tax increase of slightly less than five per cent that many Saskatoon residents find unacceptable.

Coun. Randy Donauer praised the city administration for reducing the property tax increase to 4.96 per cent as outlined in a report presented Monday to council’s governance and priorities committee.

The original projected property tax increase from earlier this year was slightly less than seven per cent.

“I will say that I was hoping for more,” Donauer said. “I do think there’s not an appetite for a five per cent tax increase in the fall. I realize this is not easy to do. I’m actually prepared to make some harder decisions.”

Coun. Zach Jeffries said he is also willing to make tough decisions, noting the 4.96 per cent does not include any new requests for police officers that may be coming.

“What we have in front of us is a fairly big challenge,” Jeffries said.

Donauer asked whether any new employees will be added in 2018 to the city’s 2017 complement of 3,648 full-time workers. Chief financial officer Kerry Tarasoff said there will be a request for some new employees in 2018, but the administration will make sure they are “absolutely required.”

Tarasoff said he did not know how many new employees will be needed, but the number will be included in the preliminary budget released in October.

Jeffries also asked for an update from Mayor Charlie Clark on talks with the provincial government about revenues, specifically the removal of grants-in-lieu for some Crown corporations.

Jeffries said he has a “huge problem” with buildings owned by Crowns in Saskatoon failing to pay any grants in place of property tax, since they receive services from the municipal government.

Clark said without the presumed impact from the Saskatchewan Party government withholding grants-in-lieu, plus other reduced revenues, the city would be considering a property tax increase of only 2.19 per cent.

If a fire occurs at a Crown-owned building in Saskatoon, the city’s fire department will respond, Clark noted. The province shocked cities by removing some grants-inlieu in the March 22 budget.

Coun. Bev Dubois said she continues to hear lots of questions about the city’s subsidy for the Remai Modern art gallery. She would like to see the city stop subsidizing the art gallery through property taxes, she said.

Tarasoff said the city’s subsidy for the gallery amounts to about $5.4 million in 2018, including $395,000 in new costs since the gallery will be operating for an entire year.

The budget update presented Monday will be the last one before the preliminary budget is released next month.