It seems as though finances has dominated editorials across the province, although it is not really surprising given the impact of the provincial budget.
It was that document which put pressure on the local Council in terms of its 2017 budget, a document that ultimately saw property taxes rise by just shy of 9.5 per cent.
It was not a hike anyone found palatable, but it is not likely to be the last increase.
At the regular meeting of Yorkton Council Monday City Manager Lonnie Kaal suggested given the initially announced cuts from the province that were then capped at $1 million, are likely to come down the pipe in 2018. That alone would add a four per cent tax increase.
Councils across this province, Yorkton included, are in for tough decisions ahead, and taxpayers will want to have input. That means letting Council know what services we are willing to see trimmed, or eliminated moving forward.
Not every stretch of grass may be cut in the future. Streets may not be as regularly cleaned of snow. User fees for golf, hockey and a range of City-owned facilities may need to better cover costs.
As examples, looking at the City’s 2016 year-end unveiled at the regular meeting of Council Monday Deer Park revenues were $52,000 lower than budgeted in addition to additional materials and supplies that were needed to maintain the course.
Kinsmen Arena realized $18,700 less revenue than what was budgeted for as well as incurred $23,000 more in maintenance expenses. Maintenance expenses are increasing at Kinsmen Arena.
The 2016 budget though is also an example of how resilient the City finances have been.
Revenues for the City in 2016 were actually $165,094 less than budgeted, explained Shannon Bell, director of finance at the regular meeting of Yorkton Council Monday.
However, department operations were $239,260 less than budgeted.
In addition, when including capital the net surplus for 2016 was $406,536, said Bell.
The 2016 budget was hit when the Saskatchewan Municipal Board (SMB) made their decisions on many property assessment appeals that amounted to a total loss of $769,185. In 2016, the City only budgeted for $100,000 in property assessment appeal losses as this amount has historically been more than sufficient for losses. This caused a $669,185 shortfall in taxation revenue as compared to budget.
Budgets need to be flexible because property assessment appeals are not a sure thing, nor is what the province may do in terms of municipal funding in a given year.
The $406,537 surplus in 2016 suggests the numbers fell in the favour of Yorkton.
The challenge is to maintain such budgetary flexibility as the pressures mount from numerous sources moving forward.
