By Greg Higgins

Provincial budget will affect NB for years, council

Apr 25, 2017 | 2:00 PM

North Battleford residents could be looking at a further three per cent property tax increase to address a funding shortfall.

Administration presented city council with the amended budget at last night’s meeting to balance a $1.3 million shortfall caused by cuts in the provincial budget. Although council are confident the effects won’t be felt too much this year, the city wanted residents to know cuts could intensify over the next few years.

The city suggested capital reductions for this year to the tune of $415,000 and operating reductions will come to $408,000. The city is looking at increasing revenue $100,000.

The only amendment that had councillors in disagreement was the three per cent increase to property taxes, which the city is labeling the “Government of Saskatchewan downloading levy.” Council had already approved a three per cent increase in the initial budget and this would be an additional three per cent. The property tax increase would put a $400,000 dent in the shortfall.

North Battleford Ryan Bater said council never wants to increase taxes, but considering the long term effects the provincial budget will have, they don’t really have a choice.

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“If we don’t do a property tax increase this year then we are faced with an even bigger burden next year,” Bater said. “The $1.4 million we had to address this year will become $2.2 million next year if the status quo is maintained by the province in terms of these budget actions. The problem is not going away.”

Bater said council was only talking about solutions for 2017 but conversations need to start towards solutions for 2018 and beyond. He added it will be a “monumental task” because the provincial cuts far exceeded what was expected during budget deliberations last fall.

The property tax increase hasn’t been set in stone just yet, but the rest of the amendments have officially been approved. Bater said council will now consult with businesses and the public before officially amending the taxation bylaw. Final decisions will be made at the next council meeting on May 8, but all signs are pointing to approving the three per cent increase.

According to Bater, seven staff positions will be eliminated or the fulfilment of them will be delayed to save in operating costs. There will be no layoffs, as the positions are not currently occupied.

Some of the major capital cuts came in the form of delaying certain projects like the expansion of the David Laird Campground and revitalizing the walking trail between 13th and 15th Ave. The Lighthouse could also see a $25,000 reduction to its grant.

Bater said council isn’t just rolling over on the discontinuing of payments in lieu of Sask Power and Energy buildings. Council will be sending a letter to the province with an alternative suggestion because they feel eliminating payments in lieu singles out certain municipalities.

“The government ought to be fair and all of Saskatchewan should share in the burden of overcoming this provincial deficit,” Bater said. “The action they are taking only impacts 109 urban municipalities in Saskatchewan.

According to Bater, there are 677 communities that are completely unaffected by discontinuing the payments in lieu and that simply isn’t fair in Baters mind.

Council is suggesting a one per cent levy on all Sask Power and Energy bills across the province in order to restore payments in lieu. Coun. Greg Lightfoot also wanted to set the record straight on the wording saying “grants in lieu” make it seem like the money isn’t contractually obligated to municipalities when, in fact, it is.

Bater was optomistic change can happen after the province announced the reinstatement of funding to libraries. He said it showed the government was willing to listen and admit it has made mistakes. Now he hopes they will do the same with payments in lieu. 

Greg.higgins@jpbg.ca

On Twitter @realgreghiggins.