Revenue sharing to Saskatchewan municipalities will rise to a record level in the 2020-21 fiscal year, Premier Scott Moe told delegates at the annual Saskatchewan Urban Municipalities Association (SUMA) convention.
Moe told SUMA members during a speech on Monday in Regina that revenue will increase by $27-million to $278-milllion, an 11 per cent jump from 2019-20.
“This massive investment will position municipalities across Saskatchewan for the new decade of growth and to continue making key investments in their communities,” Moe said.
“Municipal revenue sharing has provided municipalities a stable and predictable source of provincial revenue, and I am proud to continue our commitment to supporting key local priorities that help lay the foundation for a growing Saskatchewan.”
Part of that money, $1.5-million, will be invested in the targeted sector support initiative for municipalities.
The province’s municipal revenue sharing program is based on three-quarters of one point of provincial sales tax (PST) revenue collected from the fiscal year two years prior to the current year, the government said.
The amount of PST collected by the Saskatchewan government increased in recent years after the province increased the PST from five to six per cent in 2017.
The province also added PST in a number of areas, including restaurant meals, kid’s clothing and new home construction.
The move was welcomed by SUMA delegates. Infrastructure is usually one of the biggest areas of concern discussed by delegates at the convention.
“When I talk to our members; sewer, water, lagoons are the big issues for many of these communities. The province has been putting money into that, but we’re scratching the surface and we’re certainly going to have to have more,” SUMA president Gordon Barnhart said.
Saskatchewan has a small population, so it can be difficult for communities to pay for vital projects purely through their own tax base. Now, SUMA delegates plan to lobby the province to give them a PST exemption for construction projects.
“It would be a huge relief for the municipalities and it will make sure a lot of communities will proceed with their building projects,” Barnhart said.
This is an idea NDP Leader Ryan Meili said he’s in favour of.
“With the addition of PST and that being charged to municipalities, those costs actually outstrip what comes in in terms of the increase in revenue sharing,” Meili said.
As for the premier, he said to wait for budget day on the government’s PST plans. The 2020-21 provincial budget will be unveiled on March 18.