Local residents will no doubt be pleased that the City of Estevan will hold the line on property taxes once again.
Whether it’s the right move in the long-term is up for debate.
The 2020 city budget was introduced at Monday night’s meeting. For the second straight year, there isn’t a property tax increase, and barring something completely unforeseen (like we saw in 2017, when the provincial government slashed its grants in lieu of taxation) there won’t be a property tax increase.
The last tax increase in 2018 was the minimal one per cent.
The consumption rate for the water utility will go up, but keep in mind it’s the consumption rate that’s increasing, and not the overall utility rates. If you curtail your water consumption this year, then your rates will stay the same.
The city says the money from the utility rate increase will be directed towards the water intake project, which has been underway for a couple of years. The city received funding from the provincial and federal governments for the intake project, but an increase to the consumption rate is needed to finish the project.
We’ve argued in the past that most people will understand why the property taxes need to go up if they can see some form of a return on the tax increase. If the taxes go up, and nothing happens, they’ll be fuming. But if it goes towards a big project where they can see a return, such as the resurfacing of King Street in previous years, then they’ll be more understanding.
The vast majority of a Saskatchewan city’s revenues will come from property taxes, with grants and fees for services playing secondary roles. Municipalities don’t have access to the diverse revenue streams like provincial and federal governments.
But it makes sense for the city to hold the line on property taxes at this time. People in the community are hurting due to the struggles of the local economy and there is so much uncertainty due to the pending closures of Units 4 and 5 at Boundary Dam in 2021 and 2024, respectively. Every significant expense over the next few years has to be measured and justifiable.
Most cities in the province will have a property tax increase this year. But most cities in the province aren’t facing the challenges we’re facing at this time.
This is not a budget filled with all sorts of goodies for local ratepayers. But there’s still money to resurface Souris Avenue South from Fourth Street to Perkins Street. There’s still money for the expansion of the Estevan Police Service building. And you have the various projects that have to happen for vehicles and buildings and parks.
If you were hoping to have a bunch of budget goodies with an election looming 10 months from now, then you’ll be disappointed. Those extra projects would require a tax increase.
The city is once again seeking the public’s input on the budget. We certainly hope that if you have a problem with the contents of this year’s financial plan, you’ll take it up with the city directly. Don’t be a social media loser and vent your frustration with the budget’s contents on Facebook and think it’s good enough. Don’t hide behind your computer.
Do the right thing and call somebody with the city and voice your displeasure.
At the same time, if you’re pleased that there won’t be a property tax increase, or if you’re genuinely happy with the budget, then contact the city and let them know.
Each year, the city gives the public the opportunity to express their thoughts on the budget. It would be nice if some people contacted the city via phone call or sent in correspondences via email.
After all, the budget has yet to be passed. There’s still time to give your thoughts and let your voice be heard. If the city gets enough feedback on a particular issue, maybe they’ll rethink their stance.
Just remember that there’s a right way to do it and a wrong way to do it.
