A tax increase of 2.02 per cent is being proposed in the 2020 budget, which is expected to add another $114.57 per year, or $9.54 per month, to most bills.
According to a news release from city hall, 1.02 per cent of the proposed increase would generate revenue from property taxation. This would add another $14.93 per year, or $1.24 per month, to household bills.
The other one per cent would focus on generating revenue from two areas:
• Revenue generated for capital contributions to leisure services; most capital resources are being directed to the cast iron water main replacement program, leaving minimal funds to repair aging buildings and creating future issues. From this area, another $14.64 per year or $1.22 per month would be added to bills
• A proposal to create an infrastructure levy by increasing the current hospital levy to $85 per year from $15 per year, or to $7.08 per month
Even with these “modest increases,” the average house in Moose Jaw with a value of $258,000 would pay $1,593.30 on an annual basis or $132.78 per month in municipal property taxes, one of the lowest rates in Saskatchewan, according to the news release.
Explaining the need for the one-per-cent increase to leisure services, city manager Jim Puffalt explained, “Our prime focus is the city’s water main replacement program. However, we need to ensure funds are available to repair aging city facilities. Not addressing those maintenance realities leaves the potential for large-scale issues in the future.”
Along with the proposed property tax increase, a six-per-cent increase to water rates and five-percent increase to sewer rates in 2020 have been tabled in order to keep pace with costs associated with maintaining the city’s water security.
It’s expected that efficiencies created through the 2019 budget will continue into the 2020 budget, the news release continued. An in-house engineering design team was created this year, while the reallocation of funds will help with the creation of a second construction crew. This second crew will focus on the backlog of repairs to the water system and then move to a replacement crew.
The city has allocated an additional 50 percent, or $3.3 million, to the water main replacement program in 2020 and a further $3.3 million in 2021 from funding provided by the Investing in Canada Infrastructure Program.
“Along with the budget, we are continuing the process of reviewing core services, making the optimum use of our resources, finding efficiencies and creating opportunities,” Puffalt added.
City council will begin budget deliberations on Monday, Nov. 18 beginning at 5:30 p.m. Other budget deliberations are scheduled for Nov. 27, Dec. 4 and Dec. 11 if necessary.
