SUSTAINING THE SASKATOON ADVANTAGE...PRELIMINARY 2015 BUSINESS PLAN & BUDGET PROPOSES 7.32% GREATER INVESTMENT: 2.92% DEVOTED TO ROADS

The City continues to hear loudly that citizens want more resources dedicated to improving the condition of roadways in Saskatoon. The Preliminary 2015 Business Plan and Budget includes an unprecedented roadway investment.

“The plan and budget provide strategic investments in infrastructure and core services that will make Saskatoon an even more attractive and desirable place to live, work and invest,” says City Manager Murray Totland.  “Every one million dollars invested in infrastructure, increases the economic output of our community, creates long lasting jobs, and builds better communities – that’s the Saskatoon advantage.”

These investments are aligned with the City’s 2013 - 2023 Strategic Plan so that the City can accomplish the goals and priorities identified in that plan.

To help the City of Saskatoon pay for the services and infrastructure our citizens say they would like, the Preliminary 2015 Budget proposes a 7.32% municipal property tax increase that will generate an additional $7 million for the City of Saskatoon.  If approved as is, this means an additional $9.50 per month for a property owner with an average house Assessment Value of $325,000.

Budget 2015 Summary:

The 2015 Preliminary Corporate Business Plan and Budget has been prepared by the Administration for City Council’s final review on December 2-3, 2014 from 1:00 – 6:00 p.m. each day in Council Chambers.

The total Consolidated Preliminary Operating and Capital Budget including Land Development and Utilities is $1.1 billion. 

The total tax supported Operating Budget is $434.1 million while the Capital Budget of Civic Services and Utilities totals $225.6 million. 

Breakdown of the Proposed 2015 Property Tax Increase:

The proposed Operating Budget includes a 4.10% property tax increase, plus a 0.3% property tax phase-in base for debt repayment planned for sound attenuation wall construction projects, as well as the second of a three-year phase-in of a dedicated property tax for roadways of 2.92%.  The breakdown of the net property tax changes by major category is as follows:

Civic Operations        (1.49%)
Capital Contributions      1.81%
Fire Services           1.32%
Police Services          2.46%
Total Municipal Increase   4.10%

Dedicated Road Tax      2.92%
Sound Attenuation        0.30%

Total Proposed
Property Tax Increase    7.32%

Expenditures and Continuous Improvement:

The 2015 expenditure guideline used for the preparation of the budget was based on the Municipal Price Index (MPI) of 3.23% plus growth of 3.04% for a total of 6.27%.  This year, the Administration targeted an expenditure increase of 4.25% (excluding additional expenditures for roadways and the traffic noise attenuation) to meet continuous improvement goals. 

“Through a number of continuous improvement initiatives in 2014, the Administration identified $1.37 million in sustainable savings,” says Chief Financial Officer Kerry Tarasoff.

“Additionally, over $25 million in increased operational efficiencies, capital savings and service level enhancements were identified in 2014.  The 2015 Budget reflects that commitment as the 2014 savings are incorporated into the 2015 base budget.  In other words, without the savings, the proposed tax increase could have been more.” 

Budget Highlights:

Roads remain the focal point of this budget.  Started last year, a dedicated property tax for roadway maintenance of 2.92% was approved as part of three year phase-in of additional funds solely aimed at the improvement of the roadway network in Saskatoon. This has been added in this budget at the same percentage (2.92%).  In 2014 just over $50 million in total was provided to roadway funding while the 2015 proposed figure is $53.2 million. 

Noticeable improvements to roadways in 2014 were made through the “Building Better Roads Campaign,” launched in March.  Some of these include, but not limited to the resurfacing of over 200 kilometres of roadways; the repair of 6 kilometres of sidewalks, the repair of 188,000 potholes, the grading of 400 kilometres of gravel back lanes and the street sweeping of 61 residential neighbourhoods and 10 industrial and suburban centres.

A number of significant transportation projects are included in the budget including two new overpasses, one at Highway 16 and Boychuk Drive and the other at Highway 5 and McOrmond Drive.  These two projects total $70 million.  

Other initiatives included in the Business Plan and Budget that the City intends to make significant progress on in 2015:

· Work will begin on the new North Commuter Parkway and replacement of the Traffic Bridge to help ease congestion and improve productivity;

· Construction of a new Civic Operations Centre will begin to help improve the efficiency of City operations;

· Recommendations from the four key subject areas included in the Growing Forward! Shaping Saskatoon study will be unveiled to improve the way the City plans for growth;

· The City and its regional partners will continue to work on a regional growth plan to ensure that the Saskatoon region can grow in a sustainable way;

· The City will launch a new, modern, user-friendly website to improve public communication and engagement; and

· The City will implement Service Saskatoon to provide more coordinated and better customer service.

Other proposed projects include:

· $1 million contribution to phase-two of the Saskatoon Minor Football Field upgrade at Gordie Howe Park

· a number of utility projects totalling almost $60 million for improvements to City infrastructure; and

· Land Development capital projects totalling $147.8 million

Highlights of the Preliminary 2015 Corporate Business Plan and Budget will be presented at the Executive Committee meeting November 17, 2014.

The Preliminary 2015 Corporate Business Plan and Budget will be reviewed at a Meeting of City Council at 1:00 p.m. on December 2 and 3, 2014 in City Council Chambers. 

Once approved by City Council, the Corporate Business Plan and Budget will serve to guide the investment activities, projects, and service levels the City of Saskatoon will implement and achieve in 2015.

Copies of the Preliminary 2015 Corporate Business Plan and Budget will be available at all libraries or online at www.saskatoon.ca – look under “B” for Budget.

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