Yorkton Council has approved its operation and capital budgets.
The decision, by a four to two vote, was made at the regular meeting of Council last Tuesday, rubber stamping the documents first released in January. Councillors Ken Chyz and Mitch Hippsley were opposed, with Coun. Aaron Kienle not in attendance.
“I am having a real problem … I was hoping for a lot more direction,” said Hippsley.
Hippsley said the budgets as presented rely on the provincial dollars flowing to the city this year being the same as in 2017, and that is far from certain.
“We really don’t know the numbers,” he said.
Coun. Quinn Haider agreed there was a level of uncertainty with the budget based on what may or may not happen at the provincial level, but added the City can’t grind to a halt awaiting the provincial budget in April.
Coun. Randy Goulden said if the province makes further cuts, then the City will have to reopen the budget and make adjustments at that time.
Mayor Bob Maloney said by passing the budget Tuesday “it puts the onus on the provincial government,” adding, “… I think this is a responsible budget where we continue to invest in our city.”
Maloney then agreed a budget can be adjusted.
“We don’t have all the numbers, but there are fluid documents,” he said.
Coun. Chyz said he heard from small business owners last year that the increase in municipal taxes was difficult to deal with, so any increase this year is likely to be a hardship on some.
The budgets call for a taxation revenue increase of 4.55 per cent. This includes 2.77 per cent for future capital projects and a 1.78 per cent increase for operational expenditures. The budget had been tabled at the Jan. 29, Council meeting for public consultation and input.
“The 2018 Capital budget proposes $29,582,050 in capital project spending of which $22,699,450 goes towards completing projects 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 be funded by 2018 taxation revenue, various grants and reserve funds,” detailed material circulated at the meeting.
Proposed key Capital projects for 2018 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 Highwy # 10
• $4,600,000 for a new engineered landfill pit
• $1,900,000 for a landfill bridge
• $730,000, plus funding by the Yorkton Business Improvement District, for pathways, a pedestrian bridge and landscaping to complete the Dracup Ave. corridor
• $325,000 for a spray park, outdoor rink and lights at the Ukrainian Pioneer Park (corner of First Avenue and Burke Street).
“The Operating budget shows that the City of Yorkton brings in approximately $46 Million in revenue annually. This revenue is used to fund $38 Million in operating expenses, $2.5 Million in debt payments, $700,000 to reserves for the future use and $5.1 Million towards capital expenditures,” detailed the material circulated.
In a release on the budget being passed the City explained it “has basically three funding sources; taxation, provincial revenue sharing programs, and the Payments in Lieu of Revenue Agreements. The province gives municipalities grants in terms of revenue (such as one per cent of PST and grants for policing), which provides both predictability and stability in terms of municipal finances. When those PST revenues are down, (for example there has been an 11 per cent drop in revenue over the past two years), there is less money available to both the province and cities. When PST revenues are up there is more for everyone.”
Other than revenue sharing, the only other source of long term stable funding for cities has been the Payments in Lieu of Revenue Agreements, which had been in place for over 50 years.
“Last year, however, the Province arbitrarily decided to cancel Payments In Lieu of Revenue Agreements with the municipalities, which alone meant a loss of $1.7 million to Yorkton,” said Maloney in the release.
Payments in Lieu of Revenue Agreements are like Franchise Fees, and were made to compensate for loss of future revenue to cities when local power and energy companies were absorbed into SaskPower and SaskEnergy in the 1950’s. The agreements stipulated that the affected cities were to receive five per cent of utility revenue generated in each community in perpetuity. Swift Current, a city similar in size to Yorkton, opted to maintain their own power generation ability, generating more than $3 million in revenue annually to support their tax base. Prior to cancellation of the Payments in Lieu Agreements, Yorkton received similar amounts through the agreements to fund City operations.
Later last year after considerable discussion, the Province agreed to cap cuts to the Payments in Lieu Program for Yorkton at 30 per cent, but that still amounted to a reduction in provincial funding of $925,000.
“We have no assurances that the cap will remain in place going forward,” said the Mayor in the release. “If the cap is removed that means a further cut in funding this year of some $700,000, and that translates into cuts in capital projects like streets and roads and/or services. That is equivalent to a four per cent tax increase if we were to maintain service levels and infrastructure renewal plans,” he said.
In terms of feedback, it was limited in the time between meetings.
“As of Feb 14, five completed Feedback forms were accepted electronically and one anonymous phone call was received. The phone feedback noted concerns that seniors on fixed incomes cannot afford to pay more property taxes. Of the five Feedback forms received, two suggested that compensation to employees and Council should be reviewed. The other three Feedback forms from the business community suggested reviewing department expenses, concern about tax increases to commercial properties, both owner occupied and investment real estate, and a review of leisure activities,” detailed the circulated material.
