Saskatoon city administration is proposing a 4.5 per cent property tax hike in 2019.
The figure is contained in the city’s proposed budget released on Wednesday.
A homeowner with an assessed property value of $371,000 would see their yearly property tax rise by roughly $80.
Kerry Tarasoff, the city’s chief financial officer, said the increase is needed to deal with a growing city and inflation.
“A significant portion of the proposed 2019 budget goes to covering costs for growth and asset preservation,” Tarasoff said.
“We’re taking care of today’s needs and carefully planning for community requirements in years to come.”
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The budget states an additional $10.6 million is needed in 2019 to deal with inflation, with $3.5 million going to Saskatoon Police Service, and the remainder to other civic services.
Administration is earmarking $6.9 million for growth expenditures.
Tarasoff explained a tax property increase of 3.16 per cent would maintain the same level of existing services adjusted for inflation and growth. The increase to 4.5 per cent will add another $3.10 million for the city’s strategic priorities.
Total spending is estimated at $511.3 million, an increase of 4.2 per cent – or $20.6 million – over 2018.
The capital budget is a proposed $259.7 million, with a focus on roads, transit, water, and wastewater distribution systems.
Projects for 2019 include $13.5 million for Sid Buckwold Bridge repairs and $31.3 million for paved roadway and sidewalk preservation
Officials said the proposed property tax increase stays within city council’s tax target of 4.0 to 4.5 per cent, which is expected to generate enough money to balance the 2019 budget.
“Council has the ability to adjust any of those figures. We did go to the high end of the scale, but there is ability still to adjust if they need to,” said Tarasoff.
An additional $10.2 million in new revenue is expected to be generated through a number of sources including user fees, revenue sharing, and return on investments.
City council will review the budget over three days starting on Nov. 26.
The city is expected to move to a multi-year budget approach for a two-year cycle for the 2020-21 budget years.