City of Saskatoon administration is advising council to pass on some savings following the provincial budget.
The April 10 budget saw the province reinstate the SaskEnergy portion of the previously cancelled grants-in-lieu program. The program has the Crown utility pay municipalities grants as a way to compensate them for property taxes.
Last year’s program cancellation cost the City of Saskatoon $5.72 million. Council ended up passing $2.66 million of that on to taxpayers.
With the SaskEnergy grants back on the table, administration issued a recommendation to council Thursday urging them to take three-quarters of that $2.66 million back off of people’s property taxes.
The city had projected a 4.7 per cent property tax increase for 2018. Administration’s recommendation would see that increase brought down by 0.91 per cent, for a total increase of 3.79 per cent.
A 3.79 per cent property tax increase translates to an extra $5.50 per month for a home with an assessed value of $371,000.