Latest 2018 Budget Update Sets Property Tax Estimate At 4.96%

Following continual review of several financial options, City Administration has estimated the most current property tax increase at 4.96%.

“As we’ve said all along, we’re focussed on exploring numerous strategies to find savings that will help minimize next year’s property taxes,” says Director of Finance Clae Hack.

The Governance and Priorities Committee will consider the 2018 Business Plan and Budget Update at its Monday, September 18 meeting.

Despite a $6.1 million reduction in provincial funding -- equivalent to a 2.77% property tax increase -- the Administration has continued to work towards minimizing the property tax impact for 2018. 

 “While we continue to face significant challenges as a result of the provincial funding decreases, we’ve heard through our public engagement that it’s very important to maintain our existing service levels throughout the City,” Hack says.

As the GPC report outlines, several changes have been made to the 2018 projected budget to arrive at the revised property tax estimate at 4.96% for 2018, some of which include:

• Repayment of sound wall borrowings over 10 years instead of 5 which has resulted in a decrease of $250,000 in expenditures.
• Removal of the $240,000 growth allocation to roadways preservation and maintenance as their annual targets will continue to be met without this due to favourable pricing.
• Decrease of $600,000 to the transfer to Reserve for Capital Expenditures (RCE) in order to reduce the reliance on the property tax.
• Adjustment of $200,000 to traffic fines and penalties based on refined estimates; this adjustment results in an overall decrease in revenue of $300,000 instead of the originally estimated $500,000.

The 2018 Preliminary Budget is currently estimated at $491.0 million which is a $13.3 million increase over 2017.

The next 2018 Business Plan and Budget Update will be the full presentation of the 2018 Preliminary Business Plan and Budget book to the Governance and Priorities Committee on October 16, 2017.

Find further details and related budget and finance documents at saskatoon.ca/budget.