Melfort pleased with revenue sharing announcement

That will bring the total amount to $251 million next fiscal year for the municipal revenue sharing program.

Melfort mayor Rick Lang said the new formula is sustainable and predictable.

“What used to be the revenue sharing formula was one per cent of one point of the existing PST (provincial sales tax) before they expanded the base of it. So now, they’ve said it’s at 75 per cent of one point of the expanded PST,” Lang said.

Lang said the revenue sharing pot increase is “something that we’ll be able to base future revenue sharing on based on the fact that there are parameters set, and that we know exactly what they’re going to be. So I would say, all in all, a positive announcement by the premier.”

Melfort’s revenue sharing is just over $1 million per year, according to Lang. and the new revenue sharing formula would add roughly $45,000 for Melfort in next year’s budget process.

According to Lang the “sharing formula between municipalities and the provincial government based on some defined parameters, and that’s what we’re back to. There was some doubt as to where it was going to go, so I’ll say that this has kind of clarified that and I’m going to guess most municipalities, if not all, will be pleased with the announcement today.”

“From a Melfort perspective, we are pleased.” _{-Melfort Mayor Rick Lang}

Lang said the funding shouldn’t fluctuate dramatically.

“As long as the economy in the province continues to grow then we know that revenue sharing will continue to grow,” Lang said. “In those years when revenue sharing hits a snag, let’s say, and there’s a temporary decrease, we know that we’re going to have to deal with the decrease as well. But at least it’s all transparent, we know exactly what we’re dealing with now, and we know what the rules are.”

“So from that perspective, and the fact that the government did increase the base of the provincial sales tax and we weren’t part of that formula, and now we are. So as the provincial sales tax grows our revenue sharing will grow, and we know that.”

In the provincial news release issued today, Saskatchewan Urban Municipalities Association President Gordon Barnhart said “SUMA is pleased that today Premier Scott Moe announced municipal revenue sharing will increase to $251 million for 2019-20,”

“Through extensive consultation with the government, we believe the adjustments to this program will be a benefit to all of our members. We are also happy to see the continued commitment to stable and predictable funding, something that our municipalities appreciate and count on,” Barnhart said in the release.

by Cam Lee

Melfort pleased with revenue sharing announcement

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