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Based on how municipalities have traditionally reported it, the property tax increase for 2017 is actually 4.82 per cent. That reflects how much more tax the city will actually collect in 2017, and it’s one of the five highest increases in the last two decades.

Large businesses will probably be able to absorb the increase with little impact to consumers. Small businesses that make up most of the businesses in Saskatoon, such as restaurants, will have to pass the cost on to their customers, who are mostly residents of Saskatoon. They will also be dealing with the impact of an increase in the provincial sales tax and an increase in the education portion of their property taxes.

So while residents might look at the 2.55 per cent increase and shrug, if they spend money at city businesses they will also be helping to pay the business portion of the tax increase.

One of the other measures council approved to deal with the city’s budget shortfall is transferring another $1 million from the water and waste water utility. Todd MacKay, prairie director of the Canadian Taxpayers Federation, said moves like this are paid for by a “backdoor tax.”

City council approved a 9.5 per cent increase in water rates for 2017, and two more hikes of more than nine per cent are planned for the next two years. City officials say the water rates are increasing to help pay for lead pipe replacement.

At the same time, the city has started drawing a so-called return on investment — $6.35 million in 2017 — from its water utilities to help pay for its operating budget. The city aims to raise $12.2 million in 2017 through its increase in water rates — more than it plans to raise from its property tax hike.