Mayor Rick Lang. (file photo/northeastNOW Staff)

By Cam Lee

Revenue sharing

Melfort mayor discusses revenue sharing increase

Feb 4, 2020 | 12:00 PM

The mayor of Melfort is weighing in on the provincial government’s recent announcement on revenue sharing.

Premier Scott Moe told delegates at the Saskatchewan Urban Municipalities Association convention in Regina that the government is committing an extra $27 million for the province’s cities.

A government news release states “overall funding under the municipal revenue sharing program will increase to a record of $278 million next fiscal year – a total increase of $27 million in 2020-21.”

The release said the amount is an increase of almost 11 per cent from 2019-20, and represents a nearly 120 per cent jump since 2007-08.

Mayor Rick Lang said the increase “probably amounts to slightly more than $100,000 over last year” for the city of Melfort.

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“Based on our PST (provincial sales tax) projections that we did, we had put into the budget a number that was very close to that,” Lang said. “I think the difference between the actual number that we’ll receive based on the new calculations and the amount we had already put into the budget is about $5,000 only.”

Lang said the increase is meaningful, considering what Melfort received in revenue sharing last year. He said this year’s increase in revenue sharing helped Melfort keep the average tax increase to 2.07 per cent in 2020.

“There have been years when revenue sharing has gone backwards, and [there have] been years…like this particular year, where revenue sharing has increased substantially,” he said. “This is the highest amount of revenue sharing we’ve ever received.”

Lang said whether the increases to revenue sharing levels will continue will depend on economic activity in the province, whether the economy keeps expanding, how people spend, and how much PST is generated. He said it would be great to see the province continue to grow and revenue sharing expansion continue.

“At least, based on PST numbers, you can project what you’re going to be dealing with,” Lang said. “Because it’s somewhat predictable, that helps a lot.”

Lang said it is encouraging there was no discussion of the government backing away from or revising the current revenue sharing formula. He said Saskatchewan’s formula is much better than those in most provinces.

“Most municipalities are happy with that revenue sharing aspect, and the increase in revenue sharing,” he said. He added some of the cities didn’t research what they would be receiving in revenue sharing this year, so they were pleasantly surprised, while Melfort expected the result.

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cam.lee@jpbg.ca

On Twitter: @camlee1974