Martensville City Council approved the municipality’s 2022 budget at a meeting on Tuesday, February 15.
The $17.8 million balanced budget includes a 3% increase in property tax revenue. The city will generate $8.512 million from property taxes in 2022 compared to $8.258 million collected in 2021.
The budget also includes an increase in the property tax levy to fund a new recreation facility. The levy jumps from $100 to $150 annually.
This marks the first increase in total property revenue for Martensville since 2020.
For the average homeowner, the combined increase of the municipal portion of property taxes and higher facility levy translates into a hike of approximately $9.02 per month in their property tax bill, according to the city’s corporate services department. The estimate is based on an average residence with an assessed value of $265,000.
Property owners will find out their actual tax bills when council determines the mill rates for various classes of properties in the coming months. The mill rates will be set once the city receives final assessment values from the Saskatchewan Assessment Management Agency, and after the release of the provincial budget.
Martensville Mayor Kent Muench said the property tax hike was needed this year to offset reductions in provincial revenue sharing grants and to keep up with rising costs.
“We had a zero per cent increase in property taxes last year,” said Muench in an interview February 16. “In 2021, our residents and businesses really felt the effects of the COVID-19 pandemic, and at that time we wanted to keep tax revenue at the same level to mitigate that impact.
“We were able to find a lot of efficiencies last year to maintain services, but now inflationary pressures are forcing us to raise taxes in order to keep pace.
“The 3% increase is fair and in line with what other municipalities are doing,” he added.
Muench credited the city’s administration with preparing a budget over the past several months that follows council’s directive to balance rising operating costs while also prioritizing ongoing services and future capital projects.
The city is facing a number of increased expenses this year, including covering five years of retroactive wage increases to the RCMP. While the federal government negotiated the contract with the police force, it left municipalities with responsibility for covering the additional costs.
In the case of Martensville,, the city is looking at a 21% increase in the cost of policing.
“The federal government froze RCMP wages years ago, and now with the new contract there is a pretty substantial increase,” said Muench. “Municipalities have been lobbying the federal government to cover the cost but so far that hasn’t happened. It’s not fair, but we certainly appreciate the great job the police are doing for our community, and they deserve a raise. The money has to come from somewhere and we have budgeted for it.”
Other increased costs faced by the city include rising insurance premiums and the overall prices of goods and services.
Muench said he’s optimistic that construction on the new multi-purpose recreation facility planned for the city on the west side of Highway 12 will commence this year.
“The new rink is a priority with the community and council,” said Muench. “We’re hopeful we’ll be able to secure grant funding from the federal and provincial governments to assist in this project, but we’re proceeding with it regardless.”
By the end of 2022, the reserve fund for the facility is expected to reach about $4.5 million, according to the city’s corporate services department. This total includes a combination of money raised through the ongoing dedicated levy, as well as past and current community fundraising efforts. In addition, the city may utilize some long-term borrowing.
The estimated cost of the first phase of the project is estimated at $37.7 million, and includes an arena and full-size turf soccer pitch. In 2020, the City of Martensville committed $6.5 million to the project, with the remainder being raised through the efforts of volunteer members of the Martensville Community Recreation Project organization, approved grants and long-term borrowing.
The 2022 city budget earmarks just over $11 million for capital projects. These include:
* $5.1 million in water and wastewater upgrades through the New Build Canada Fund;
* $1.7 million on a full city- wide water meter replacement program;
* $1.1 million on upgrades and improvements in parks, sports fields, and playgrounds; and
* $1.06 million on roadway upgrades and maintenance, including added street lighting on 10th Avenue.
Highlights of Martensville 2022 municipal budget
Department Updates:
• The City has included an increase to total property tax revenue of 3% in the budget.
• The City will undertake the first phase of a comprehensive Asset Management Plan in
2022, contingent on grant funding from the Federation of Canadian Municipalities.
Water & Sewer
• The $75.00 base tax levy will continue for 2021 to fund a reserve for future wastewater treatment.
• The monthly water flat fee will increase from $12.00 to $12.50.
• The monthly sewer flat fee will increase from $27.50 to $29.00.
• A new infrastructure replacement fee will be introduced on water bills equal to $2.00 per month. These funds will be used to rebuild infrastructure reserves for future needs.
• The New Building Canada Fund project for Wastewater Treatment and Water
Distribution will continue to move ahead in 2022 with the next phases of the project to begin. Under the New Building Canada Fund, approved projects are funded one-third by the Government of Canada, one-third through the Provincial Government and the final one-third at the municipal level. The funding will allow the City to upgrade its existing lagoons, build a new gravity conveyance system to connect to the City of Saskatoon’s sanitary sewer system, and upgrade the existing sewage lift station. In addition, upgrades to the water supply reservoir and pumping stations and a new water main will connect to Saskatoon’s drinking water supply system. It is estimated that the project should be completed in 2025.
• A full city-wide meter replacement program will be undertaken in early 2022 with Neptune Technologies completing the project. The upgrades will allow the City to read water meters remotely and eliminate the need for manual reads by City employees. The technology upgrades will eliminate the need for estimating consumption as well as help identify water leaks and anomalies sooner than we were previously able to. This project is being funded in part by the Canada Community Building Fund (formerly the Gas Tax program).
Emergency & Protective Services.
RCMP
• The RCMP detachment will remain at the current staffing level for 2022. This is the equivalent of 8 full time members.
• A collective agreement was finalized in 2021 and approximately five years of retro pay are expected to be billed in 2022 from the Federal Government, along with an annual increase for 2022. The City will fund the one-time retro pay amounts through reserves.
Infrastructure & Planning
Land Development & Land Use Planning
• Numerous projects are planned for 2022 including the completion of the Southeast Sector Plan, aligning the City’s OCP with the new P4G District OCP, completion of the development standards manual, a full zoning bylaw update and the 2040 Growth Plan update.
• The City continues to support and participate in the Saskatoon North Partnership for Growth (P4G) and work with partners to advance plans for land use, transportation, and servicing in the region.
Road Rehabilitation and Maintenance
• As per the Pavement Assessment and Pavement Management Plan approved in 2017, Council has committed $1,000,000 to roadways in 2022. This is possible due to accessing $596,000 of the City’s Canada Community Building Funding (formerly the Gas Tax Program) to prioritize our roadways and align with Council’s priorities that infrastructure is maintained and at optimum service levels.
• Street lighting along 10th Avenue South will be installed.
• The City will add an additional pedestrian crosswalk with lighting at a location to be determined.
Recreation & Community Services
• The City will continue to invest in a new multi-purpose recreation facility for the community by contracting DCG to assist the Lace Em Up campaign to fundraise for the new facility. We have also engaged aodbt and Wright Construction to design/plan the facility and provide an accurate cost projection.
• The Recreation Facility Levy will increase to $150 per year from the $100 per property levy in 2021. This reflects Council’s commitment to a future recreation facility as deemed a high priority by residents in the Recreation and Parks Master Plan. .
• Significant rehabilitation work will be completed on the City’s pathways network.
• The playground equipment at Andrea’s Park will be replaced.
• Lighting at Diamond 1 of Mocon Fields will be completed.
How is Martensville Funded?
The City of Martensville collects most of its revenue through Property Taxes as shown above, however other revenue streams also help fund the infrastructure, programs, and services offered in the City. Another significant source of revenue is Government Grant funding at 22.27%. These grants are used for a variety of capital projects in the City, as well as general operations as allowed. Revenues from Fees & Services comprise 14.85% of the City’s revenue stream. Examples include things like recreation programming user fees, the garbage & recycling program fees, facility rental fees and many others. The City continues to look for alternative funding opportunities to ensure that we can maintain and grow all that the City of Martensville offers. Note that we do not include the City’s Water & Sewer Utility Department here as this department only funds the Water & Sewer infrastructure and operations.
Your 2022 Tax Dollar
Have you ever wondered how each tax dollar is spent? The image above shows the 2022 City of Martensville Budget broken down into different functions in the City. Each dollar spent is put into essential infrastructure and service needs for the residents and businesses in Martensville. For more detailed information on the 2022 approved spending, please refer to the 2022 Budget Highlights by Department. Note that this image does not include the Water & Sewer Utility Department as this is operated as a fee for service department and is not funded by general property taxation.