City council has approved the 2022 budget, which includes a tax hike of 5.45 per cent and increases in the water and sewer utilities by three per cent each.
Council voted 6-1 to approve the operating, capital and equipment reserve budgets during the Dec. 15 budget meeting.
Coun. Dawn Luhning was opposed.
The mill rate increase of 5.45 per cent will generate $1,692,933 in revenue for the operating and capital budgets. The mill rate is composed of a municipal tax hike of 3.84 per cent and an increase of 1.61 per cent for the Moose Jaw Police Service.
The mill rate increase means taxpayers will pay an extra $81.12 per year or $6.76 per month on their property bills.
One percentage point this year equalled $310,755.26 in municipal taxation.
In comparison, there was a mill rate increase of zero per cent in 2020 and 1.86 per cent in 2021.
Council voted 5-2 to increase the water and sewer utility rates by three per cent each, or six per cent combined. This means taxpayers will fork over an extra $45.12 per year or $3.76 per month.
Councillors Luhning and Crystal Froese were opposed.
Furthermore, council voted 5-2 to increase the infrastructure levy by $35 to $100 per taxable property, with that money funding the cast iron water main replacement program next year. Increasing the levy to that amount will generate an extra $1.6 million per year for this project.
Luhning and Froese were opposed.
With the increase in the mill rate, water and sewer utilities and infrastructure levy, taxpayers will pay an extra $161.24 next year on their bills.
Meanwhile, council voted 6-1 to take $500,000 annually from the solid waste reserve and put it into the general revenue fund to fund maintenance costs with that utility.
Luhning was opposed.
Furthermore, council voted unanimously to take $1.6 million from the traffic safety reserve and allocate it to the general capital reserve capital budget, with $1.1 million directed toward the replacement project of the Thunderbird (Fourth Avenue bridge) Viaduct and $500,000 for traffic control intersection upgrades.
Also, council voted unanimously to designate the sewer main lining program and South Hill pumphouse upgrades as the City of Moose Jaw’s 2022 municipal gas tax-funded program. The city usually receives $2 million annually through this program.
Lastly, council voted unanimously to approve the 2022-26 capital and equipment reserve budgets and authorized city administration to tender and award the capital and equipment purchases for next year from those reserve budgets, subject to limitations laid out in the municipality’s purchasing policy and administration bylaw.
Budget components
The City of Moose Jaw’s 2022 budget consists of the operating, capital and equipment components, which together total $132,823,244 in spending that will support various programs, services and renewal of capital assets, the budget report said.
The general operating budget — which provides funding for programs and services, including transit, snow removal and recreational programs — projects revenues of $59,913,312 and expenses of $53,924,656. This represents an increase from this year of $444,680 and $1,456,024, respectively.
The transit and paratransit services will receive a combined subsidy of $1,457,822 next year, or about 70 per cent of overall costs. This year’s subsidy was $1,230,715, or 65 per cent of costs.
The general capital budget — which funds major construction, renovation and rehabilitation projects — requires $14,062,616 in funding in 2022, with $14,433,070 in capital funding available, the budget report said.
Meanwhile, next year’s funding request from the equipment reserve is $2,655,294. Most equipment purchases will be in public works, transportation, parks, and recreation.
Capital spending on land development will be $9,333,286.
City hall also expects to spend $29.3 million in the utility operating budget and $22.8 million in the utility capital budget.
All these figures added up to $132,823.244 in spending next year. This is an increase from $119 million this year.
The Moose Jaw Express/MooseJawToday.com will continue to report on projects and initiatives in the 2022 budget during the next few weeks.
