Business questions future in NB after utility increase

“It’s premature to elaborate on how we are going to deal with continuous downloading of city expenses to small businesses like ours. However, last year, Macro Properties undertook a major investment and installed new high energy efficiency toilets and showerheads in some of our assets. We continue to explore various water-saving options including completing the retrofit next year. The uncompetitive tax structure in form of utilities levies is not good for reinvestments. It is very discouraging to invest in North Battleford while other cities in Saskatchewan are business friendly and consult small businesses on how to move forward,” she continued.

North Battleford Mayor Ryan Bater disagreed with the claim North Battleford was the highest taxed city the business operates in.

“My first response is to recognize that Macro Properties is a valued business in the city.” Bater said. “I congratulate them on their initiative to drive down consumption in order to keep utility fees down.”

The mayor continued: “The 2017 utility rates across 11 Saskatchewan cities have an increase of between two and 10 per cent,” Bater said. “The average was 6.05 per cent, so the 4.5 per cent increase in North Battlefords was actually below the average.”

Bater added raising rates isn’t ever something the city wants to do. He explained the rates had to be increased because the cost of running them increased and the utilities have to pay for themselves. According to Bater, city council is ensuring the expenses are being monitored and that revenues collected are adequately paying for the cost of the utility.

When asked about how Macro felt the increase made it “very discouraging to invest in North Battleford,” Bater reiterated the city is “open for business.”

“Open for business means we have an open door policy within our planning and park development and within city council,” Bater said. “I will point out that North Battleford is a growing city at a time of economic downturn. We’ve had over $103 million in construction over the last three years… that tells me that we are competitive and we are attracting new economic development.”

Bater added as part of the open door policy, any businesses are free to have consultations with council. Bater recalled a “great consultation” with the Battlefords Chamber of Commerce during the budget process. According to the mayor, city council made the budget process very public and invited the public and private sectors to join in on deliberations. During council deliberations on the utility increase, the mayor and several other councillors said that the rate increase could also be used to pay down some of the city’s debt, which is currently sitting at $43 million.

“I applaud the fact they aren’t using debt to support operation maintenance, so we support that,” said Warren Williams, president of the Battlefords Chamber of Commerce. “However, the city mentions this is a $30 increase to the average household per year. It doesn’t seem like much, and it probably isn’t but, it is the totality of everything. You’ve got the UPAR (underground pipes and ashphalt replacement) and the baseline tax increase and now the utility increase. What is disappointing is that in all the public discussions, they [council] only reference the ‘average homeowner’ and not the impact the rate increases would have on businesses.”

“We understand the debt accumulated as a result of continuous spending by the previous council needs to be cured. We hope that the current council takes time assessing business impact,” added Maraj.

Greg.higgins@jpbg.ca

On Twitter @realgreghiggins

by Greg Higgins

Business questions future in NB after utility increase

What's Trending