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PROVINCE PROVIDES ADDITIONAL REVENUE SHARING AIMED AT REDUCING PROPERTY TAXES

Released on April 24, 2008

Municipal Affairs Minister Bill Hutchinson today announced an additional eight per cent increase to municipal revenue sharing and urged municipalities to use the new funding to reduce proposed property tax increases. The $10.41 million increase comes on top of a $7.9 million increase announced on budget day, and brings the total revenue sharing increase this year to $18.3 million.

"We're extremely pleased to be in a position to help municipalities provide property tax relief to Saskatchewan people," Hutchinson said. "Our government promised to provide a seven per cent increase in each of our first two years in office, but thanks to a record-breaking oil land rights sale in April, we are able to keep tomorrow's promise today and exceed our two year commitment in year one."

Hutchinson said the new eight per cent increase will be added to the base funding for municipalities. It brings the total amount of revenue sharing to municipalities to $140.5 million, a 15 per cent increase for 2008-09. The government has promised to negotiate a new municipal revenue sharing deal that includes a portion of the province's own-source revenue.

"After consulting with the Saskatchewan Urban Municipalities Association, the Saskatchewan Rural Municipalities Association and New North, we decided to add this new funding to the revenue sharing base," Hutchinson said. "Although this funding is unconditional, our goal is to help municipalities provide property tax relief, particularly those that are planning property tax hikes this year.

"This money will not solve all the concerns municipalities have, but we are ahead of schedule in keeping our promises on revenue sharing and we will be working with municipalities to come with a long-term solution."

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For more information, contact:

Greg Urbanoski
Municipal Affairs
Regina
Phone: 306-787-2155
Email: greg.urbanoski@gov.sk.ca

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