Extra revenue for city could lower tax hike next year

Taxpayers could face a smaller municipal property tax hike next year due to extra money that city hall expects to receive from outside sources.

The initial proposed tax increase for 2021 was 4.05 per cent, including an increase of 2.87 per cent for the operating budget and an increase of 1.18 per cent to cover the Moose Jaw Police Service. This would have added an extra $59.69 per year to the average property tax bill.

Several events have recently occurred that have changed the City of Moose Jaw’s 2021 preliminary budgets, finance director Brian Acker explained during the Dec. 9 budget meeting. These include an increase in building permit revenue, savings through the Saskatchewan economic recovery rebate, fewer expenses for the 2021 Air Show, and additional funding for recycling.

This means the proposed mill rate increase required for municipal services next year is now 1.56 per cent, which, when combined with the increase of 1.18 per cent for the police, means taxpayers could see an overall municipal tax hike of 2.74 per cent. However, council has not finished discussing the budget, so that could change again.

Budget presentation

City hall has received information about the new joint-use school construction on South Hill that indicates the municipality will receive an extra $220,000, Acker explained.

The provincial government has confirmed that a 10-per-cent rebate on the electrical charge portion of power bills will be applied from Dec. 1 to Nov. 30, 2021, he continued. The operating budget will save $151,000, the waterworks utility will save $25,000, the wastewater division will save $59,000, and the solid waste utility can expect savings of $1,000.

Mosaic Place expects to see savings of $39,000 from this rebate, while the Moose Jaw Police Service also expects to see savings of roughly $6,000.

The preliminary budget for 2021 had set aside $20,000 for the 2021 Air Show, but city administration does not think that will happen, Acker continued. Therefore, city hall has reduced funding to $5,000.

Next year, there will likely be an air show, based on conversations with the base commander, said Mayor Fraser Tolmie. 15 Wing plans to host the 50th anniversary of the Snowbirds in October, and since Moose Jaw wants to be a good corporate partner, it would be positive to support the event.

The province has informed the municipality that it will receive $426,901 as part of next year’s multi-material recycling grant, said Acker. This is an increase from $369,278 this year.

Two unexpected financial windfalls for next year include $37,100 as part of a rebate from the Workers’ Compensation Board (WCB), along with $12,500 through the province’s rink rebate program.

Based on these changes, the total amount that the City of Moose Jaw could save next year is $614,623.

Council then unanimously approved a motion to update the proposed 2021 budgets to reflect the changes in Acker’s report, including the WCB and rink rebates.

Budget pressures

Several documents were attached to Acker’s report, including an attachment that reviewed the pressures on municipal revenues and expenses. According to the document, city hall faces extra pressures of $4,458,402 next year that could affect the mill rate.

Acker explained to the Express that city administration is not adding anything new, but instead, some programs and services are costing more while inflation could also have an effect.

Some pressures include: