City hall skips early peek at tax increases

Unlike last year, Saskatoon residents will have to wait until after the fall election for a look at the city’s preliminary property tax increase.

In 2015, as part of an effort to offer a more transparent budget process, the City of Saskatoon released preliminary tax increase estimates in May, June, August and September. The official preliminary budget was released in October.

City manager Murray Totland said that same information will not be released this year because of the municipal election.

Allowing the current council to influence the budget process would be unfair, since the council elected on Oct. 26 will vote for and approve the 2017 budget, he said.

“We’ve looked at it and we think it’s more prudent and responsible to wait for the next council,” Totland said in an interview on Wednesday.

He stressed there was no pressure from the current council to hold off on any unpleasant news about tax increases until after the election.

“This is strictly the administration taking this decision,” Totland said. Residents can judge the incumbent councillors and mayor on the 2016 budget approved in December, he added.

Tax increases have averaged 5.43 per cent under the current council, elected in 2012.

Last year, the public got to see the budget take shape along with accompanying property tax increases to pay for revenue shortfalls. The increase rose steadily from 2.9 per cent in May to 3.89 per cent in June to 4.35 per cent in August and 4.6 per cent in September.

Totland said that approach will return next year.

When the preliminary budget was tabled in October — a month earlier than in previous years — the property tax increase had dropped to 3.95 per cent. Council ultimately approved a 3.96 per cent hike, the lowest since 2010.

Totland said the budget process this year is a couple of months behind last year’s, since the preliminary budget will not be tabled until November.

“We’re still putting the pieces together on both the revenues and the expenditures,” he said.

In December, council was told the preliminary tax increase for 2017 had already risen to 4.2 per cent based on existing spending commitments like road repairs. That number does not take into account possible cost increases in areas like policing, but also does not include possible increases or decreases in revenue.

The provincial government delivered more money for Saskatoon in this year’s budget than last year’s, but financial pressure has many expecting a more austere approach next year.

The budget review by Saskatoon city council is slated for Nov. 30 to Dec. 2.