Property taxes in Moose Jaw would have to go up if the Government of Saskatchewan does not keep its promise to grant municipalities a full point of provincial sales tax, says Mayor Glenn Hagel.
The funding formula for municipalities was changed for 2009. Municipalities were given a share per capita of 0.9 per cent of PST and promised one per cent for 2010.
But according to media reports, Saskatchewan Finance Minister Rod Gantefoer said he may not be able to boost municipal operating grants as much as he promised.
Hagel said he was still hopeful the initial promise would be kept. He said the new funding formula was very important as it allowed municipalities to put financial plans in place.
“It gives us the ability to plan ahead,” he said, “Traditionally money coming from the province to help cities operate is made on a year by year basis which means we are usually three months into the fiscal year before we find out what kind of provincial money we are going to receive.”
