Councillors during budget deliberations on Tuesday night. (Alison Sandstrom/paNOW Staff)

By Alison Sandstrom

Budget 2021

2021 budget tentatively approved with 1.1 per cent tax increase

Jan 13, 2021 | 8:28 AM

Prince Albert city council has tentatively approved the 2021 budget, which includes a 1.1 per cent mill rate tax increase.

Over the course of three days of budget deliberations, councillors shaved approximately $1.75 million off city administration’s proposed 2021 spending plan, prioritizing maintaining service levels, while axing some recommended equipment and vehicle purchases, and holding back just over $615,000 from reserve funds.

“Everyone’s struggling because of COVID,” Mayor Greg Dionne told paNOW after deliberations finished on Tuesday night. “So council took it by the reins and said ‘we’re going to bring it in as cheap as we can and I think they did a very good job.”

In an effort to reduce the tax increase, councillors halved the amount they were set to put into a reserve used to fund large infrastructure projects.

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They also cut the 2021 contribution to the public transit reserve entirely, saving $220,000, while $145,000 was chopped off the transfer to a reserve used to replace city equipment.

The city’s director of financial services, Cheryl Tkachuk told paNOW it’s alright to decrease the amount going into reserves this year, but council shouldn’t make a habit of it.

“We just need to be very careful that – we’re okay to do that for a year – but we have to be very cautious going forward,” Tkachuk said, adding that judging by the comments she heard from councillors during deliberations, they’re on the same page as her.

Asked what the 1.1 per cent mill rate tax increase would mean in terms of a dollar amount for the average homeowner in the city, Tkachuk said she was not able to provide that number because 2021 is a one-in-four-years reevaluation year in the Saskatchewan.

Other budget highlights

Most city departments, including fire, will receive modest spending increases in 2021, with no funding allocated to hire additional staff, but no staffing cuts.

The police department saw its budget increased by $650,000, but because the service is no longer responsible for bylaw enforcement, the net increase from what the police received last year was only $214,490. Around 0.7 per cent of the total 1.1 per cent mill rate tax increase is for policing.

The budget also includes $8.3 million dollars worth of capital projects. Highlights include funding for phase one of the planned Rotary Adventure Park at Little Red River Park, two new pedestrian bridges (also at Little Red), $4.2 million for roadway repaving, $130,000 for playground replacement, and money for a new outdoor fitness centre at the Alfred Jenkins Field House.

External agencies, including the P.A. Community Service Centre, which provides special needs and seniors transportation, saw their funding maintained, but not increased this year.

Meanwhile Council boosted support to community clubs whose operations have been impacted by COVID-19 and allocated $50,000 towards a marketing campaign for the City.

Councillors voted 7-2 to tentatively approve the 2021 budget, with Couns. Miller and Lennox-Zepp voting against it. The budget is not final until it’s passed at a regular city council meeting.

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alison.sandstrom@jpbg.ca

On Twitter: @alisandstrom