(File photo/northeastNOW)

By Ben Tompkins

Tax Increase

City of Melfort releases 2023 preliminary budget

Nov 25, 2022 | 3:15 PM

The City of Melfort has proposed a 6.6 per cent municipal property tax increase— at least for the time being.

This came through a preliminary report the city recently released regarding their 2023 operating budget of $11.2 million.

With this year’s high inflation rates, it has resulted in Melfort (and everywhere) paying significantly higher prices for municipal services.

In 2022, the average consumer price index rate was 6.84%, peaking in June at 8.1% and currently sitting at 6.9%.

This is projected to continue into 2023.

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“The city worked hard to exercise fiscal responsibility and minimize the financial impacts to our community caused by the COVID-19 Pandemic and Ukraine Conflict,” said Trevor Wowk, Chief Financial Officer for the City of Melfort. “But, we are now facing high external inflation pressure that is eroding our ability to maintain our services levels and reinvest in our critical infrastructure.”

The proposed 2023 Operating Budget incorporates the following utility rate increases: Government of Canada Fuel Surtax – 23 per cent, SaskPower rate – 4 per cent, SaskEnergy currently seeking approval for – 16.8 per cent, and SaskWater fixed-rate – 3.37 per cent and consumption-rate – 11.3 per cent (14.67 per cent total).

Meanwhile, the proposed 2023 Capital Budget includes $7.9 million in capital investments into roads, water infrastructure, and facilities.

Proposed capital projects for 2023 include $1.7 million for Street Renewal (Broadway South Reconstruction), $850 thousand for a new fire engine, $100 thousand for Facility Renewal, $430 thousand for Watermain Renewal, $2.6 million for Land Development, and $1.45 million for a New Solid Waste and Compost Facility.

“This proposed budget is holding the line operational and maintaining our capital investment plan that is important for our community’s quality of life and economic well-being,” said Mayor Glenn George.

“That said, during this year’s budget process, it is important for Council and staff to consider the impact that rising property taxes have on our citizens.”

As for businesses in the area, northeastNOW also spoke to the Melfort Trade Alliance and Chamber of Commerce, as when it costs more for businesses to operate, it usually costs more for the consumer to shop.

“They’re not excited,” said executive director Cal Gratton. “But, for the most part, everybody understands that we’re kind of in a difficult time with the economy and that the bills need to be paid.”

“This is a preliminary budget, so we’ll just have to wait and see where our members fall when everything is done.”

Council deliberated the preliminary 2023 Budget at the Committee of the Whole meeting, back on Nov. 17.

According to Wowk, he is unsure if the budget will change, however, he is anticipating the tax increase will.

One thing similar between the two he noted is that he “doesn’t believe they’ll change by a lot.”

Council is expected to have the budget finalized by the next monthly council meeting on Dec. 12.

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Ben.Tompkins@pattisonmedia.com

On Twitter @BenTompkins_8