(Alison Sandstrom/paNOW Staff)

By Alison Sandstrom

city finances

Parks improvements, big borrowing part of proposed P.A. budget

Dec 16, 2020 | 6:07 PM

The City of Prince Albert has released their proposed 2021 budget which includes a 6.6 per cent mill rate increase, new spending in recreation, and plans for major borrowing.

During budget deliberations next month, the city’s politicians will likely whittle the proposed tax increase down. Mayor Greg Dionne told paNOW he’s confident it can be brought in at just under three per cent.

“It’s been a tough year for everyone, so we’re going to bring it in as low as we can,” he said. “We’re working hard on it.”

Dionne cited the proposed purchase of a $340,000 street sweeper as an example of an item that would likely be cut from the budget.

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Director of Financial Services Cheryl Tkachuk explained in a normal year, a 6.6 per cent mill rate increase would equate to a 6.6 per cent increase in property taxes. But because 2021 is a once-every-four-years reevaluation year in the Saskatchewan, that calculation is more complicated.

“The 6.6 per cent mill rate increase is difficult to apply to home values in 2021,” Tkachuk told paNOW. “Due to the evaluation year, assessed values could go up or down, but also when we [the City] apply our tax tools, that could change as well depending on what property class you’re in and how we revalue our tax tools.”

She added the City plans to upload education resources about the impact of the revaluation year to its website in the near future.

New recreation projects, continued infrastructure investment

The proposed budget includes $280,000 for the planned Rotary Adventure Park, which will be supplemented by $520,000 in outside funding.

Another potential partnership would see the city contribute $254,000 towards a $554,000 outdoor fitness area at the Alfred Jenkins Field House. The remaining cost would be funded by local philanthropist Malcolm Jenkins.

The proposed Outdoor Fitness area would be located on the South East side of the Alfred Jenkins Field House. (City of P.A./Budget Package)

Other notable budget items include $4.2 million for the paving program, $300,000 for sidewalk and curb rehabilitation, $550,000 for pedestrian bridge replacements and $130,000 for playground replacements.

“We have another ambitious year ahead of us,” City Manager Jim Toye said in a media release. “The proposed budget will allow us to continue investing in Prince Albert to not just maintain but improve our roads, facilities and playgrounds.”

Big borrowing ahead

To fund approved capital projects including the new aquatic and arena recreation centre, Marquis Road extension, raw water pump house and a new waste cell at the landfill, the city will need to borrow $35.5 million in 2021. The new borrowing will be added to the city’s existing long-term debt, which will sit at approximately $20.7 million as of Dec. 31, 2020.

COVID covered

The finance department is predicting the pandemic will cost the city $2.1 million in 2021, but taxpayers will not have to shoulder that burden. Federal and provincial COVID relief money received by the city will more than make up for pandemic related losses in 2020 and 2021.

General fund budget deliberations are scheduled for Jan. 6 and Jan. 7.

Sanitation, Utility and Airport, and Land Funds budget deliberations are scheduled for Jan. 20 and Jan. 21.

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alison.sandstrom@jpbg.ca

On Twitter: @alisandstrom