City administration has pitched the proposed 2021 budget as a status quo document with “no new enhancements,” but some city councillors say increased expenses and the proposed tax hike refute that claim.
The 2021 budget proposes an increase in general taxation of 4.05 per cent — which would generate an extra $1.19 million for municipal coffers — and an increase to utilities by a combined 11 per cent. Meanwhile, an increase in the infrastructure levy of $35 per year would raise the overall levy to $65. This helps fund the cast iron water main replacement project.
Overall, the additional taxes that property owners could pay next year is $172.08.
Budget presentation
Finance director Brian Acker reviewed the budget document’s projected revenues and expenses, pointing out operating budget revenues are expected to increase by 3.81 per cent, to $51.3 million from $49.4 million, while expenses are likely to increase by 6.23 per cent, to $52.5 million from $49.4 million.
“The unfortunate reality of any budget is it costs more each year to provide the same programs and services. So you can’t maintain things at zero per cent,” he said.
Notable areas with increases include:
- General government: an increase of $700,000, or 8.11 per cent, for increased collective agreement salaries, inflation, council remuneration, property assessment contract, information technology software, additional human resources staffing, pandemic cleaning
- Moose Jaw Police Service: an increase of $676,032, or 5.87 per cent
- Moose Jaw Public Library: an increase of $173,000, which reinstates funding to pre-pandemic levels
- YaraCentre: an increase of $139,326, or 19.52 per cent, partially due to extra cleaning costs
- Mosaic Place: an increase in subsidy of $587,852, or 111.69 per cent, bringing the total subsidy to $1.1 million
- Parks and recreation: an increase of $847,537, or 13.75 per cent, due to pandemic-related costs, operating the outdoor pool next year, and increased spray park costs.
Not included in the budget — but coming in a separate report — is a request from parks and recreation for an extra one-per-cent increase in municipal taxation for $295,000. This would support recreation and facility capital funding. City administration removed this from the 2020 budget to reach the zero-per-cent mill rate increase.
Acker added that the total spending being proposed in the 2021 budget is $119.4 million.
Council discussion
“I’m struggling with some of the language in the report, things that (say), ‘The budget presented does not include any new initiatives’ (and) ‘this is a status quo budget,’” said Coun. Dawn Luhning. “Then you flip over the page and (it says), ‘The overall expenditure increase is just over $3 million … which equates to an increase of 6.23 per cent.
“I am wondering how that is a status quo budget?”
Luhning understood that the budget proposed increasing municipal taxes by 4.05 per cent. However, she didn’t understand how city hall saw that as appropriate during a pandemic.
Moose Jaw is still in a pandemic and many residents are struggling financially, while some businesses have not reopened fully, she continued. The proposed tax increase was not “palatable” for her.
Any talk by city administration of returning to normal in 2021 is also unrealistic since there is no proof, Luhning remarked. Analysts have said “normal” likely wouldn’t return until next fall and vaccines won’t arrive for another eight to 10 months.
“I think the City of Moose Jaw and this council needs to be very, very cautious with increasing expenditures,” she said, pointing out that while revenues are expected to be up, that is only because of one-time federal funding of $2.1 million. Without that, the municipality would be in a deficit position next year.
“… we can’t expect the citizens to be happy that we’re levying a really huge tax increase on them,” Luhning added. “It’s not the right thing to do at this time.”
Tax increase too high
Coun. Heather Eby was also troubled with the proposed tax hike. While everyone understands the effect the pandemic has had on the city, she noted that council and city administration need to realize that most working people have also been affected somehow.
“I have a number in my mind that I hope we get to and it’s not 4.05 per cent,” she added.
Coun. Jamey Logan also struggled with the proposed tax increases, saying he wanted to trim and cut costs where possible. He would be willing next year to reopen the budget if necessary to reinstate spending initiatives.
“But until then, we have to be diligent and we have to look after the citizens who, as Coun. Eby indicated, are not at work and perhaps did not have the best of times through this time,” he added.
The next budget meeting is Wednesday, Dec. 9.
