The Executive Director of the NSBA says inflation is real and while it is likely at its peak right now, right now is the most critical time when we need to be more cautionary with respect to expenditures and managing cash flow.
Keith Moen says while the 3.93 per cent property tax increase that City Council settled on, is considerably less than the 4.38 per cent suggested going into two days of budget deliberations, it is still more than the 3.53 per cent projected last November when the City of Saskatoon’s two-year budget was set.
“Any additional costs that businesses are facing now particularly in the hospitality and retail sectors are a challenge without question. You know there are other challenges that they’re facing already in terms of overhead costs, supply chain issues – you can’t get the inventory you want – or transportation costs you’re seeing to get the product delivered are out of this world.”
Moen says council brought the budget down by $1.3 million and is transferring $500,000 from the Saskatoon Land Bank. A municipal government is not allowed, by law, to run a deficit.
The NSBA says its view is that the core services of road maintenance, police and fire services, and waste be the primary considerations in terms of priorities.
For instance, Moen says the NSBA was glad to see City Council approved hiring 11 full time equivalent employees for the police department and says the organization feels that safety is critical.
While their goals are admirable, he says one thing that could be diverting the City’s attention is the municipal affordable housing program. Moen says the NSBA doesn’t think it is necessarily in the City’s purview to get into social service components which are the responsibility of the Government of Saskatchewan. With the 3.93 per cent increase on property tax, for a home assessed at $344,000, it means around an extra $6.50 per month.
