A Saskatoon city committee approved a plan Monday to fill a $9-million funding gap brought on by the Saskatchewan provincial budget.
The one per cent increase in the provincial sales tax and the province’s cuts to grants-in-lieu of taxes for SaskPower and SaskEnergy caused the shortfall.
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“We need to set a budget that we can live with for 2017 and that reduces the impact on citizens,” Saskatoon Mayor Charlie Clark said.
City administration had a list of recommendations, including increasing property taxes by an additional 1.69 per cent, a wage freeze for city employees, deferring snow removal improvements and increasing the return on investment for water and wastewater utilities without impacting rates.
Committee members approved a tax increase 0.93 per cent Monday and all other recommendations were accepted.
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In December 2016, council approved a 3.89 per cent tax increase, but including adjustments caused by reassessment, a business tax ratio change and the additional 0.93 per cent, the overall hike would be 2.55 per cent.
The average Saskatoon household would pay $43.80 more in property taxes in 2017, compared to a bill from 2016.
The committee also voted in favour of reducing the city’s fuel expenditures and increasing parking fines from $20 to $30.
Final decisions will need to be made before council sets the city’s mill rate on April 24.