Moose Jaw City Council has some homework to do over the holidays. Monday night they were presented the 2018 budgets and there are some major pressures.

City Manager Matt Noble says we're still realizing the ramifications of all the provincial budget cuts from last spring and they're in the millions of dollars.  

"In 2017, we had a reduction of $1,572,954 and in 2018 that has increased to $2,354,167." explained Noble during his presentation of the preliminary estimates. "These reductions in funding are the equivalent of 8.75% in municipal taxation."

Noble says department heads have tightened their belts and even if Moose Jaw adopts a status quo budget to do the exact same level of service as 2017, we'd still need a 4.05% tax increase to pay the bills, seeing as we're short $1 million. The need for the increase comes from inflation and new contracts with city employees that account for a major portion of the budget. Some of the contracts date back years and have just recently been ratified.

If council approves a 4% tax increase, that works out to a $52 per year increase in property tax for the average property in Moose Jaw.

As Moose Jaw starts the budget process, Regina has already started to pass motions for theirs. Our neighbours to the east will see their water bills go up 2% in the new year.

Like Moose Jaw, Regina is preparing for a major investment in the Buffalo Pound Water Treatment plant that the two cities share.  Moose Jaw will likely see a rate increase as well but that will be determined later in budget talks that are expected to start next month.