21.9 C
Prince Albert
Wednesday, July 17, 2024
Home News City finds extra $2m in budget, holds line on taxes

City finds extra $2m in budget, holds line on taxes

City finds extra $2m in budget, holds line on taxes
Mayor Greg Dionne, pictured, said there will be difficult waters ahead as the provincial government looks for new sources of revenue to offset resource prices. -- Herald file photo.

Despite facing a $2 million hole in their budget, the City of Prince Albert will not be increasing taxes by more than the previously announced 1.5 per cent.

The budget committee met Tuesday evening to discuss how to address the shortfall, which came about after the province cut grants in lieu of taxes payments in the recent budget.

The city was also affected with less revenue sharing than expected, an impact of $388,000 as a result of the 2016 census. The PST revenue generated this fiscal year is expected to decrease further, which will negatively affect the 2018 budget.

The losses total $2,109,690.

To make up the difference without resorting to property tax increases, spending reductions are being made in several departments. Additionally, $1 million in a 2016 Fiscal surplus and a $308,740 reduction in the planned transfer to reserves was used to further offset costs.

The biggest reductions came to the police department expected to find $200,000 worth of savings, and Community Services department, which faces a $172,000 cut.

The city is also expected to generate $106,430 more in revenue including $83,430 from parking rate increases. Metered parking will go from $1 to $1.25 per hour, monthly parking at Sask. Polytech. will go from $60 t $65 per month and early pay options for parking tickets will increase from $10 to $15. Parking ticket rates and fines will also go up.

For more on this story, please see the April 13 print or e-edition of the Daily Herald.