POLL: Budget committee unanimously greenlights $189 base tax hike

“I think the biggest thing I want to report on today, is our budget –first time in my history – has passed unanimously and [we] didn’t have to call a special meeting to get the other reading through,” Mayor Greg Dionne said after the meeting.

“I think that’s the proudest moment, because we certainly have a diverse council. Nobody controls the votes, we’re all independents, and we’re convinced this was the right thing to do with the city and we all voted.”

It would be the first time in at least 10 years that a budget has been passed unanimously by the budget committee.

The budget committee approved the inclusion of a property tax increase of $3,895,670 in the operating budget for 2013. The budget increase is comprised of items included in the city’s operating budget as well as increased funding to the paving program.

Without the increased funding for the paving program, a base tax increase of $95 would be needed. The committee were presented with a range of options in a report prepared by the city’s director of finance Joe Day. His March 20 report ultimately recommended the $189 base tax increase.

And over the next four years, the city will put $4 million annually towards the paving program.

“And when you look around our city, it’s roads, roads, roads. So, you think over the next four years, we’re going to put down $16 million worth of asphalt. So, we’re going to have lots of nice roads and repairs and that’s what people wanted to see,” Dionne said.

The mayor said residents who have spoken out in support of the increase like that the money will be used directly for the asphalt program.

He said residents were hoping to see the same response for roads that they did see for snow removal. “And we’re going to deliver an asphalt program and start building and fixing our roads.”

The paving program is no longer a part of the general fund operating budget, which made it possible for the city to keep the mill rate the same. The $2,058,700 that would have been directed from the funds from operations set aside for the capital-funded projects to the paving program, is part of the $4 million funded by the base tax increase.

The remaining $1,941,300 represents an increase in funding to the city’s paving program.

“The $189 is 100 per cent to $4 million [worth] of roads,” Dionne said. “Guaranteed.”

“That’s a guarantee. We’re passing a bylaw that it can be used for nothing else. And then come next fall, this fall, if we have a surplus, and we didn’t get $400,000 done, that $400,000 will be carried over. It will not be eaten up by any other department or used for any other purpose but asphalt.”

Coun. Martin Ring during the budget committee said he’s been a proponent of the base tax, and said one of the issues that keeps coming up is the spread between the high and the low taxed properties.

“And if we were to continue down the road of going back to a regular mill rate increase, you would continue to have that spread from the low end to the upper end would just continue to grow. And in this fashion, that we’re looking at here, at least the base tax collection amount is something that is equal pain, across the entire city, and I believe most of my residents can live with that.”

He said that on a property that pays $6,000 in property taxes, a three or four per cent property tax increase would put affordability out of reach.

“There’s people that are starting to seriously consider selling their houses because of their property tax,” Ring said.

Monday evening’s budget committee vote means that this year’s budget cycle will soon draw to a close. And although this budget was what Dionne called “tough,” he said they’re not done. The city will be reducing its fuel and energy consumption by 15 per cent, Dionne said.

“So, actually, I hope to report a better outcome in 2014,” he said. To that end, Dionne will be meeting with representatives of SaskPower next Monday afternoon to find out about the Crown energy corporation’s plans to reduce its consumption by 15 per cent.

“Why at SaskPower? Because they supply our street lighting program, which is almost $880,000. And so we want to see how they’re going to do it. They have quite a few options.”

He said SaskPower may do this by switching to LED lighting or it may decide that not all the street lights it has on are necessary.

“But at the end of the day, we don’t care what their plan is, that they’re under the same formula as everyone, as our service clubs, everyone we supply power to, is going to reduce power by 15 per cent. Because that’s what’s going to impact our 2014 budget.” he said.

During the budget committee meeting, Coun. Rick Orr pointed out that the Pineview Terrace Lodge levy and the Field House portion of the base tax would end in coming years.

“And I think it’s important that they [the public] know that there’s an end to those. It’s not a carte blanche that’s given out forever.”

But the budget process is not over yet – the items approved by the budget committee still require council’s approval to become official.

A vote to finalize this year’s budget will be held at an upcoming council meeting.

tjames@panow.com

On Twitter: @thiajames

by Thia James

POLL: Budget committee unanimously greenlights $189 base tax hike

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