The word "taxes" has been repeated over the last couple months for a number of reasons. Of course, it is crunch time for Canadians as they complete their tax returns. Not to mention both the federal and provincial budgets for the upcoming fiscal year were released nearly two weeks ago.

Now, residents in Kindersley will have a bit of an idea how the taxes and cuts from the Saskatchewan government will affect the upcoming municipal budget.

The Town of Kindersley administration released an update Monday morning on the impact of the provincial budget for the town and its residents. Currently, council and administration do not know entire picture of the situation and how it will affect the town. Although, the repercussions will be determined by the time council releases the latest budget for the town.

Here is what the town knows thus far:

Revenues and funding will decrease significantly

Cities and towns throughout the province will have to absorb a significant loss when it comes to reduced funding from the provincial government. For Kindersley, the portion of revenue sharing will be $974,431 for the 2017-2018 fiscal year; down from $1,075,395 in 2016-17.

Also, the elimination of payments in lieu from SaskEnergy will result in $93,480 less revenue for the town's budget. SaskEnergy previously collected fees which were then dispersed to more than 100 communities across Saskatchewan as payments in lieu instead of traditional property taxes.

As a result from the loss of payments in lieu and decreased revenue sharing, administration and council are predicting nearly 20 per cent less funding for this year.

Raised PST set to hit taxpayers

As everyone expected, the one per cent increase to the Provincial Sales Tax (PST) will increase costs for the municipality and taxpayers.

Furthermore, council and administration are researching the broader spectrum of the tax in terms of how it will affect goods and services such as construction. This information will help determine the expenditures for the town in 2017.

Overall, Kindersley property assessments rose substantially and the municipality’s overall value increased by 65 per cent. As a result, the municipal mill rate will drop accordingly, which may or may not increase taxes.

Other information regarding the budget

School taxes are set to increase dramatically due to a large cut in funding - some by 30 to 60 per cent. This is due to school mill rates already being set for this year with higher assessment values.

In addition, town's reserves for major capital projects will contribute to the town's plans moving forward as they assess the affects of the Saskatchewan budget.

 

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