City Council unveiled a first look at this year’s capital and operating budget at its regular meeting Monday.
And once again Yorkton taxpayers will be looking at a hike in what they pay in property taxes.
In making a presentation to Council Monday, Fred Schrader, Assistant Director of Finance with the city, proposed a 4.55 per cent increase in tax revenue for 2018. This includes 2.77 per cent for future capital projects and a 1.78 per cent increase for operational expenditures.
The City of Yorkton brings in approximately $46 million in revenue. For 2018 this revenue will be used to fund $38 million in operating expenses, $2.5 million in debt payments, $700,000 to reserves for future use and $5.1 million towards capital expenditures.
In preparation for Monday’s presentation Schrader noted, “The 2018 Operating & Capital Budgets has been presented to Council through two Strategic Planning Sessions over the past few weeks.”
Administration began the budgeting process by first presenting Council with a capital projects budget. This budget has $4,085,000 of funding from 2018 taxation revenue, which is the same as in 2017, explained Schrader.
There are three distinct areas in terms of capital projects, said Schrader, noting the first section lists all capital projects that were approved in prior year budgets that are not yet completed.
“These projects are typically funded from prior year budgets, however this year we are needing to utilize $165,000 from the 2018 capital budget to finish off all of the prior year projects,” detailed his report circulated to Council Monday.
“The second section details new projects for 2018 that are fully funded through grants, long term loans and reserve accounts. This means that no funding from taxation revenue will be required for these projects.
“The final section lists all the new projects that are funded through the 2018 capital budget and 2018 taxation revenue.”
“For 2018 we have $22,699,450 in projects to complete from the prior year, $852,000 in projects that are fully funded by reserves, grants and long-term loans; and $6,030,600 in projects that will utilize 2018 taxation revenue, various grants and reserve funds,” said Schrader.
Administration is proposing $29,582,050 in capital projects for the 2018 year.
Proposed key Capital projects for 2018 (subject to council approval) include:
• $1.5 million, recapping sections of Broadway Street
• $725,000, completion of a concrete intersection at Highway #9 and Broadway Street
• $8,890,000 for the North of York Road outfall, including storm channel, sewer trunk and bridge over Highway #10
• $4,600,000 for a new engineered landfill pit
• $1,900,000 for a landfill bridge
• $325,000 for a spray park, outdoor rink and lights at the Ukrainian Pioneer Park
The initial Operating Budget from the Management team proposed a 6.1 per cent increase to taxation revenue or $743,900 taxation increase.
“Please note that the 6.10 per cent increase in taxation revenue being presented includes retaining the $734,000 cap for the surcharges lost in 2017. If the City loses this $734,000 in revenue it will require a 9.39 per cent increase in taxation revenue in 2018,” detailed the report.
Schrader said after assessing the initial document management did make cuts including;
• Reduce the increase to the RCMP budget $100,000
• Remove additional overtime in Public Works by $100,000
• Remove additional power for new Dracup Lights saving $20,000
• Removal of Street Cleaning Notification Advertising saving $7,000
• Fund Street Repairs to Darlington, Circlebrooke and York Road from reserves saving $120,000
The total reductions totalled $347,000.
The reduction of taxation revenue of $347,000 resulted in bringing down the percentage increase in taxation revenue to 4.55 per cent from 6.10 per cent.
Schrader told Council, Administration wants to take the next two weeks, to invite the public and property owners of the City of Yorkton to review the budget documents and to provide any comments or concerns regarding the budgets presented.
Administration will post this report and the attachments on the City’s website for the public to access. All comments can be submitted to the Finance department for feedback.
“Administration would like to advise Council and the Public that just because a 4.55 per cent increase in taxation revenue is being proposed, this does not necessarily mean that a property owner’s total tax bill will increase by 4.55 per cent. Included in the total tax bill is a portion of funds that go to the school divisions. The taxation rates for the school divisions are set by the Provincial Government and will not be known until after the Provincial Government passes their budget for the year,” detailed the report.
Councillor Aaron Kienle said a key here is that the budgets, which were tabled until Council’s Feb. 20, meeting are not finalized, and the public will be able to review and comment on the documents.
Coun. Quinn Haider also noted the budgets have been created without knowing what may happen in terms of provincial dollars flowing to the City, details unknown until the provincial budget is brought down.
City Manager Lonnie Kaal said if provincial funding is drastically altered as it was in 2017, cities will be forced to reopen their budgets to deal with the new numbers.
“It does create a problem,” agreed Mayor Bob Maloney. “We would have to open budget deliberations again.”
Coun. Randy Goulden said she believes the budget as presented are what local citizens want. She noted they want a safe city and about 30 per cent of operations go to fire and police services.
The citizens also want services retained, while addressing infrastructure renewal, said Goulden.
“We have to start moving our city forward,” she said.
After last year’s offloading from the province Coun. Mitch Hippsley said he looks at the 2018 budgets as the first for this edition of Council.
“We still need to spend money to make this a better city,” he said.
Coun. Darcy Zaharia suggested without capital renewal people are not going to want to move to Yorkton to help it grow. He said the proposed increase is reasonable, noting that if you discount 2017 because of the provincial offload, the increase in the past seven years has “averaged just over four per cent.” He suggested when inflation, increases in provincial sales tax, gas costs and other factors are considered the four per cent is reasonable.
