Steinbach city council has approved a $29 million budget for this year. Mayor Chris Goertzen says it includes a tax increase of 1.1 per cent and explains what that will mean for property owners in Steinbach.

"For the average homeowner, it'll actually mean very few dollars, about $12 per year. That's about $1 a month."

In presenting the budget to city council, the city's Director of Finance Brian Hrehirchuk explained the tax increase is due to the new RCMP contract. He notes the contract took effect last April and cost the city an additional $600,000 for the last nine months of 2017. Hrehirchuk says the contract costs $800,000 more for a full 12-month year and so the city had to account for that additional $200,000 in this year's budget.

Councillor Jac Siemens moved approval of the budget saying it includes a lot of good investment in the city's infrastructure and equipment.

"This budget absolutely moves the city forward. We're spending $17.5 million on new capital and replacement capital. We're spending a lot of money in Steinbach this year again and we're able to do that through grant funding, through using our reserves and using our operating dollars. And, people can expect that they are going to have to drive slowly through Steinbach because summer in Steinbach is construction season."

The budget was approved 4-3. Councillors Earl Funk, Susan Penner and Michael Zwaagstra were opposed saying they can't support it because money from the city's land acquisition budget is being used for the city's land deal with the golf course last year. Funk maintains it was actually a grant and told council the city should not be giving money to the wealthy.

"I feel the integrity of our grants process has been harmed and breached and for that reason, I'm voting against this budget."

Penner agrees and adds her opposition has nothing to do with the tax increase.

"For me, it was actually irrelevant if there would be a tax increase or not. Even if the mill rate had stayed the same and there would be no tax increase, I still would not have supported this budget because I feel like this whole golf course deal has undermined our grants process."

Read more: City Council Agrees To Buy 40 Acres From The Golf Course

Zwaagstra says money in the city's land acquisition budget should be put to better use.

"By making the golf course purchase, by making that grant, that's now reduced the city's flexibility in regards to actual strategic land that the city may need to acquire. So you remove the city's flexibility in regards to dealing with other things that may come up where there is an actual strategic value, as opposed to simply a bailout to assist an organization that's having financial difficulties."

Some other budget facts:

-the city spends $8.4 million a year on salaries and benefits
-the city spends about 14 per cent of its budget, or $4 million, per year to service and pay down its debt
-the city generates $5.2 million in revenue per year from user fees at various facilities like the Aquatic Centre and T.G. Smith Centre