City Manager Says Tax Increase A Necessity
“We know we can get back to pre-pandemic levels but it is going to be unattainable in 2021,” city manager Jim Puffalt said introducing the 2021 Operating and Capital Budgets this evening.
The Budget, which was not made available to all of the media or the general public before its introduction, will see tax increases which will account for property tax increases over 5 percent in lower assessed homes was described as a realistic budget designed to buffer tax payers from major increases once the COVID - 19 pandemic is over.
“We can’t just worry about this year,” he said. “A second zero (percent property tax increase) makes it more likely to be a big increase (in future years).”
The increase in property taxes are projected to be:
2.87% Municipal Tax Increase for Operating Budget
1.18% Municipal Tax Increase for Police Service Budget
$35.00 per year Infrastructure Levy to fund cast iron watermain replacement.
The 1.18 percent increase in property taxes for the Moose Jaw Police Service (MJPS) budget represents an overall increase of 5.58 percent or $565,322 which includes $216,000 of financial services the City previously provided to the MJPS for free and hidden in the budget.
The tax increase will amount to a $94 annually and for the sewer and water rate increase the annual increase will be $77.28 annually.
Expenditures by the City are set to grow by 6.23 percent in 2021.
“This truly is the best deal in the city,” Puffalt told Council likening the City services to being less than the cost he has for his cellphone and home cable.
Despite a vaccine potentially being widely accepted and effective Puffalt said that 2021 will be tougher on the City budget-wise in 2021 versus 2020.
“We feel this is more of a difficult year,” he said, adding “there are expectations the facilities are open at the same time as COVID - 19 restrictions.”
Puffalt said that recreational facilities cannot be closed like they were earlier in 2020 because people have expectations that the facilities are open to some extent. The restrictions on recreational facilities being open means that there are higher operating expenses versus revenues due to the restrictions in the number of people who can use the facilities.
“A cut in soft services is not palatable to most people.”
Puffalt said that there are expectations that the City will return more to normal by July given the announcements of a COVID - 19 vaccine being approved in other countries and the vaccine becoming available locally.
It needs to be noted but the most optimistic and reliable estimates have COVID - 19 vaccinations becoming widespread to have any efficacy are in September at the earliest as the rapid rollout of vaccinations has yet to be determined.