Saskatoon city administration recommending property tax increase in mid-year budget

Administration at the City of Saskatoon is recommending property taxes be raised by four to four-and-a-half per cent in 2019 in a mid-year preliminary budget.

In a mid-year report to councillors, administration said the city needed a tax increase of 3.16 per cent to maintain current service levels.

Any further increase would go toward planned increases in the city budget, like snow and ice removal and increased policing costs.

"The Committee's indicative rate decision provides the administration with an indication of their tolerance level for a property tax target early in the process," read the report. "(It) also provides the administration with clear parameters to work within to achieve city council priorities."

Last year, councillors voted to raise property taxes by 4.7 per cent in 2018. In April, the city reduced that number to 3.79 per cent after SaskEnergy reinstated its grant-in-lieu program during the provincial budget.

An increase of four per cent would bring in an extra $1.94 million to city coffers, while a 4.5 per cent increase would generate an extra $3.1 million.

The city believes revenues will increase by $11.2 million, including $5.3 million from the SaskEnergy grant-in-lieu and a $3.1 million increase from higher tax assessment in homes.

Projected extra spending includes $1.2 million for snow and ice removal, $1 million for the city's bridges management plan and a roughly $4.3 million increase in the Saskatoon Police Service's budget.

The city is also budgeting for deficits in many programs. Last year, the city landfill ran a $1.2 million deficit, while the city's parking enforcement program ran a $1.6 million deficit.

Councillors will discuss the mid-year budget at its Governance and Priorities Committee on Tuesday afternoon.

Council will officially set the 2019 mill rate during budget deliberations in November.