Municipal property taxes in Warman will be going up 3.1 per cent in the coming year following the adoption of the 2022 civic budget at a Warman City Council meeting December 13.
The increase in tax revenue is needed to keep pace with increased operating and capital expenses, according to Warman Mayor Gary Philipchuk.
“It’s a difficult task to maintain and improve services for residents while implementing a modest increase,” said Philipchuk. “This budget does just that.”
The increase is aimed at raising approximately $300,000 in additional property tax revenue to cover the city’s operating and capital budget shortfall in the coming year.
In 2020, the city’s municipal tax levy totalled $10.4 million. In 2021, it increased to $10.5 million. In 2022, it will amount to about $10.8 million.
According to the city’s finance department, the 3.1 per cent tax hike on the municipal portion of property tax equates to an increase of $6.67 per month, or $80.04 per year), on a home with an assessed value of $350,000.
“No one is ever happy with a tax increase,” said Philipchuk. “But there is a certain level of services that the city must provide residents and businesses.
“Those services contribute to the quality of life in our community.
“The city is in good shape financially, and we’re ready to continue growing, with funding available for big projects as they’re needed.”
Philipchuk said several factors contributed to the city’s need to hike property taxes.
“We were hit with a 12.7 per cent increase in our RCMP contract cost,” said Philipchuk. “That amounts to an additional $140,000 that was downloaded onto the city. The federal government negotiated a new RCMP contract with the National Police Federation, and we had no say in that, but we’re responsible for paying the increased cost.”
The city is also looking at higher wages for civic employees, with two per cent increases scheduled annually for the next four years (2022-2025).
Philipchuk said the multi-year agreement with civic employees is fair for both the city and the workers.
“The two per cent wage increases are across the board,” said Philpichuk. “The increases are below the cost of inflation, but they offer stability and predictability for both the employer and employees.”
While costs are rising, revenue from senior levels of government is slated to drop in the coming year. According to the city’s budget, revenue from the Saskatchewan Municipal Revenue Sharing program will decrease by about $90,000, or four per cent, in 2022 compared to 2021.
One of the major capital projects slated for 2022 is a $3.5 million replacement of Lift Station 3, located in an established neighbourhood. During severe summer storms, the area is subject to flooding because the current undersized lift station is unable to handle the increased water flow. Construction of the new facility will double capacity and allow the lift station to function without added pumping assistance from vac trucks.
Philipchuk said the city is once again applying to senior levels of government for infrastructure funding to help the city pay the cost of expanding the Legends Centre to include a second full-size ice surface. The project has failed to make the cut over the past two years, and the Mayor is hopeful the next round of funding will meet with success.
The cost of the Legends Centre expansion, meanwhile, has gone up, from an estimated $8 million in 2018 to $11 million in 2021.
“The city has budgeted for our cost, which would be one-third of the overall project,” said Philipchuk. “If this application is successful, we’re ready to put shovels in the ground.
“If we had been approved on our last application, that expansion would have been built and in operation by now.”
Philipchuk said the city is not looking at any significant cuts to services. He noted that while the annual spring back-alley cleanup is being permanently eliminated, the fall cleanup is being retained. The spring cleanup was temporarily discontinued in 2020 and 2021 in response to the COVID-19 pandemic. Philipchuk said the switch to a single cleanup in the fall saves the city a significant amount of money and has not impacted the community negatively.
On the positive side, Philipchuk pointed out the city is continually expanding services including snow removal and road maintenance to new areas of the city.
“It costs more every year to provide the same level of service,” said Philipchuk. “There’s a big difference between a city of 5,000 and a city of 13,000 population.”
The city has earmarked $90,000 in its 2022 capital budget for the purchase of a flat deck truck and $25,000 for a four-yard sander. The City currently has one only flat deck/sander unit. The second truck will be used for road maintenance during the summer when not being used as a second sander in the winter.
The overall city budget includes:
* $34,640,052 in operating revenue;
* 17,553,108 in operating expenses;
* $5,059,734 in capital expenditures;
* $17, 101,944 in transfers to allocated reserves;
* $5,039,734 in transfers from allocated reserves to support capital purchases;
* $15,000 in transfers from allocated reserves to support operating expenditures.