A report coming to a Saskatoon city committee today says homeowners could be paying considerably more in taxes next year.

A preliminary budget report estimates a property tax increase of 6.97 per cent in 2018 both to maintain current services and account for growth.

But a city official says it's a very early projection and not likely to stay as is.

"It's to give [city councillors] a heads-up," said Kerry Tarasoff, the city's chief financial officer.

"We realize that that won't be the number that actually gets approved next December. But hey, here's the starting point."

The projected hike factors in inflationary pressures at the city, a preliminary 2018 operations budget from the Saskatoon Police Service and the continued expansion of snow-clearing service throughout the city. The latter initiative, begun in 2016, was halted for 2017.

The process ahead

Before budget deliberations this fall, city councillors will receive a number of reports from the city asking them to suggest increases or decreases in service levels to road and sidewalk management, fire services, waste handling and other areas. The idea is to bring down that estimated 6.97 per cent increase.

The preliminary 2018 budget is expected to be tabled this fall, with councillors voting on the final budget in early December.

"I don't think anyone would be happy with a 6.97 per cent tax increase," said Tarasoff.

Kerry Tarasoff, the City of Saskatoon's chief financial officer. (CBC)

Waste handling is one area that's ripe for rethinking, says Tarasoff.

"We want to encourage people to recycle and discourage people from throwing things into the landfill," he said.

"One of the ways to do that is switch your business model around so that maybe people don't have to pay, or pay as much, for recycling, but to make them pay for garbage as a utility. Taking it off the mill rates and making it a utility would actually reduce the property tax."

That would also place the cost of dumping solely on those who do it, Tarasoff added.

Provincial budget cuts take their toll

Part of the projected increase is due to the provincial government's controversial decision to discontinue grants-in-lieu paid to the city. That measure, brought in during this year's provincial budget, will, along with decreases in municipal revenue sharing, cost the city $6.1 million in 2018.

Inflation in city services is expected to account for a 1.53 per cent tax increase over this year. As well, the Saskatoon Police Service is asking for an additional 3.27 per cent increase, though that does not take into account growth, said Tarasoff.

While the city plans to spend $3.5 million on new parks and roadways, the city believes much of this amount will be accounted for through financial growth.

The city recently increased property taxes in 2017 by 2.55 per cent. That translates to a $39 year-over-year jump for a home worth $371,000.