A big property tax hike could be on the horizon in Saskatoon.
A report heading to the governance and priorities committee on Monday says property taxes could increase by just under seven per cent in 2018.
READ MORE: Saskatoon city council sets property tax, maintains U of S rink funding
The report is considered the first step in the 2018 budget planning process, though many councillors said they wouldn’t agree to a seven per cent hike.
“There’s no way I’m going to support a tax increase anywhere near seven per cent,” Ward 5 Coun. Randy Donauer said.
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“I think that would be ludicrous and I don’t think any people in the community would support that.”
The anticipated increases are due to growth of local infrastructure and an expected funding gap of $6.1 million from provincial budget cuts and the removal of the grants-in-lieu program.
The report said that taxes would have to increase by 2.78 per cent just to cover the provincial cuts.
Mayor Charlie Clark expressed confidence that the province will pay the equivalent of property taxes for all Crown corporations.
“I’ve heard positive signs from the government and the ministry, so that’s the work we have ahead of us,” Clark said.
READ MORE: Saskatoon property tax increase, wage freezes coming to address Sask. budget
The report says a five percent increase would be needed next year to maintain current service levels, excluding Saskatoon police service.
Officials cautioned that the estimates contained in the report are estimates and the 2018 property tax rate will be set by Saskatoon city council in November.
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