If you think the proposed "status quo" budget for the City of Moose Jaw in 2022 means no tax increases, you may want to think again.
For city administration, maintaining status quo means zero reductions in services but increases in property taxes. Other proposed initiatives, if approved, along with the request from the Moose Jaw Police Service (MJPS), mean there will be less cash in property taxpayers' wallets.
The City of Moose Jaw’s 2022 operating, capital, and equipment budgets total $132.8 million in spending, an increase from $119.3 million this year, the budget report says.
The proposed budget proposes a general tax increase of 3.25 per cent, adding $48.36 per year or $4.03 per month to most taxpayers’ bills and $1,011,344 extra to municipal coffers. Furthermore, the Moose Jaw Police Service wants an increase of 1.61 per cent or $498,179 extra, adding $24 per year or $2 per month in taxes.
Moreover, the annual infrastructure levy could increase to $100, adding $35 per year or $2.92 per month to bills.
These three areas would add an extra $107.36 per year or $8.95 per month to most taxpayers’ household bills.
“Even with these increases … the average house in Moose Jaw would pay $1,597.93 on an annual basis (or) $133.16 per month in municipal property taxes, one of the lowest rates in Saskatchewan,” the budget says.
Meanwhile, the budget proposes increasing the water and sewer utilities by three per cent each next year. In 2021 both utilities increased by a combined four per cent and added $29.46 per year or $2.45 per month to most residents’ bills.
While no one on council — so far — has raised the issue of whether this is a status quo budget, Coun. Dawn Luhning did so last year.
‘Status quo budget’
“Expenditure items of note, this is a status quo budget. Any changes to the budget, we are asking council’s approval before those become set in the budget. That’s been our practice for the last number of years,” finance director Brian Acker said during the recent budget meeting.
“Bottom line, with the budget, whether it be revenues or expenditures, it does cost more each year to provide the same programs and services. So even though it is a status quo budget, costs do increase.”
City administration proposes spending an extra $1,456,024 next year in the operating budget, an increase of 2.78 per cent.
However, some pressures increase costs, he added. These include:
- Negotiated collective agreement increases
- Inflation of two per cent on non-salary portions of the budget
- Natural gas price increases of 14.4 per cent
- Electricity cost increases of 3.5 per cent
- Mosaic Place wants $935,444 next year in subsidy; this year, it was $864,387
- The police want $12.73 million next year; this year, that was $12.18 million
While city administration has not included any new projects, it does want council to approve additional initiatives. Some include hiring a consultant for $227,000 to implement the climate action plan; spending $285,000 to install pickleball courts; approving $1.23 million for the public library; and providing $13.6 million to community groups.
Providing services
“In our terminology, status quo means we’re providing the same amount of service as we did last year with no additional staffing. So to us, that’s a status quo budget,” city manager Jim Puffalt said during a media scrum after the budget meeting.
“We know that there’s inflationary costs upon us. Even if we had the same amount of people that were doing the exact same thing, that collective bargaining agreements raise the labour costs, and so … it costs a little bit extra to do the same thing.”
Puffalt added that city hall can’t control inflation, utility rates or negotiated salary increases, but it can manage labour and the services it provides.
When asked whether city hall had looked at reducing services or contracting out to the private sector, Puffalt replied that city administration usually looks at those while creating the budget.
“We look for efficiencies all the time in productivity and costing,” he added. “So yeah, absolutely.”
