SHAPING OUR FINANCIAL FUTURE: COUNCIL FINALIZES 2016 BUDGET at 3.96%

Following two days of final budget deliberations, City Council has approved a 3.96% property tax increase which translates to a $64.70 per year increase, or $5.40 per month based on an average residential assessment value of $325,000. 

** All figures in millions

The preliminary budget initially had proposed a 3.95% property tax increase of which 3.57% was allocated to the Building Better Roads Program (year three of a planned four-year phase-in) and Policing.“The 2016 budget investment is based on Council’s full consideration of a variety of challenges facing our growing city,” says Kerry Tarasoff, Chief Financial Officer and General Manager, Asset & Financial Management. “The need for preservation and maintenance of infrastructure, providing appropriate emergency services for safe communities, and ensuring quality of life through City services were key decision drivers.”

“Bigger-picture inputs like the City’s Strategic Plan, citizen input gained through public engagement held throughout 2015, and the City’s Performance Measures which measure successes and track progress towards our set goals were also considered by Council in their decision making for 2016 budgetary spending,” Tarasoff says.

The Administration advanced numerous adjustments to the 2016 Business Plan and Budget, leading to further discussion, and additions and reductions to arrive at the current property tax increase of 3.96% for 2016:

• City Council resolved to dedicate 0.55% (which amounts to $1.039M of the property tax increase) to snow and ice programs in 2016, and instructed the Administration to prepare the 2017 through 2020 preliminary budgets with a similar additional allocations in each year.  This additional funding will be used to improve snow removal programs immediately, and over a number of years of phased-in increases, this funding could eventually be sufficient to fund city-wide snow removal on residential streets when conditions warrant. 
• The January SPC on Transportation will be considering improved service levels to implement in 2016 and beyond, and is expected to make recommendations for Council to consider at its January meeting.
• Snow disposal sites are a major consideration of this initiative for future years.  As such, Council has directed the Administration to bring forward detailed options and funding implications to the 2017 budget process.
• The Saskatoon Police Service received funding to hire four officers in January 2016 and four more officers in August, 2016; this results in a final operating budget of $469.3 in staff compensation and operating costs.  
• $50,000 grant approved for Saskatoon Tourism adding .03% to mill rate.
• $65,000 approved for Truth and Reconciliation Commission initiatives planned for 2016 or a .03% addition to the mill rate.
• Net impact of $45,000 for an addition Customer Service Position withing Urban Planning and Development or a .02% addition to the mill rate.
• $12,000 approved for seniors and residents with limited mobility, specifically for assistance focused on moving their waste and recycling carts equal to a .01% mill rate increase.
• $44,000 approved for the extension of paddling pool hours to maximize daytime use for patrons or a .02% mill rate increase.

City Council allocated all of the revised assessment growth, $1,248,100 in total, to reduce the mill rate. This reduced the impact by 0.66 % which resulted in a final property tax increase of 3.96%.

With rapid growth, and the City’s non-tax revenues declining as a share of the budget, there’s been a greater reliance on property tax to fund City operations. City Council and Administration  remain committed to their long-term 10-Year Strategy of increasing alternate revenue sources and reducing the reliance on residential property taxes as a source of revenue to pay for ongoing operations. To address the needs of citizens today and tomorrow, the City is focused on the long-term goal of managing the City in a smart, sustainable way.

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