Non-property tax options outlined for Downtown Event and Entertainment District.
As part of planning for the Downtown Event and Entertainment District, the City engaged KPMG LLP (KPMG) to conduct an in-depth report on potential non-property tax revenue instruments that could be implemented to help pay for the project. This analysis will be presented as an information report at the September 13, 2023, meeting of the Governance and Priorities Committee.
“This report helps us understand the various options out there that will assist us in creating a financial plan with minimal impact on taxpayers,” says Clae Hack, Chief Financial Officer. “It provides us with the data and information necessary to refine our projections and bring forth a draft funding plan.”
Hack stresses any use of these instruments has not been approved by Council. The purpose of the report is to quantify any potential revenues for each instrument and to update Council and the public on the status of the work so far.
“There is much more to do, including extensive engagement with the province and industry groups, before any formal approvals are requested or received to implement any of these financial instruments,” Hack says.
Out of five non-property tax revenue instruments analyzed by KPMG, Administration has identified four options that warrant additional analysis:
- Accommodations Tax: A charge applied to short-term hotel, motel, hostel and online platform stays, as already exists in many Canadian municipalities.
- Facility Fee: A charge applied to event tickets, as is already in practice at SaskTel Centre and TCU Place.
- Tax-Increment Financing (TIF): A property tax revenue with a defined geographic boundary (i.e., the District), generally only used in areas of redevelopment.
- Parking Revenue from New Parking Structure: Net funding from the City-owned parking structure.
“These types of funding tools have been used successfully by many other municipalities, in Canada and other countries,” he says. “This is not re-inventing anything, rather it is looking at best-practices and what has worked elsewhere to create a made-in-Saskatchewan solution.”
The full scope and financial plan for the Downtown Event and Entertainment District has not been finalized and this KPMG analysis provides valuable information as a starting point to continue establishing full project cost estimates and funding requirements.
The full report, including the complete analysis by KPMG, can be found on the meeting agenda.