Challenging was a keyword used by Humboldt Mayor Rob Muench as he issued his State of the City address on Tuesday.

A tax increase of 6.55% was issued in the 2017 budget to help make up for a shortfall of $362,000 from the cut of the grants-in-lieu program from the provincial budget.

Muench says that council was hoping to only have a 3% rise, but explained that 1% generates $58,000 in revenue, which, when added up to the 6.55% rise, covers the loss.

Humboldt's tax rise was also compared to other cities in the province. Muench added that Prince Albert is only seeing a 1.5% rise due to them dipping into their reserves.

Muench says that was something they didn't want to do.

"We chose not to do that this year. We felt that reserves are put aside for specific projects that the city is going to be working on and we felt that we have been diligent in putting that money away over the years that we didn't want to - basically - rob that money out of there just to meet the budget."

The city pushed some projects back to make everything fit into their numbers for this year.

Capital projects bumped from 2017 included curbs and paving of the Uniplex parking lot, additional ball diamond construction and upper doors at the Uniplex.

"We got through this year, but 2018 is going to be the real challenging year because we are losing about half-a-million dollars from the province."

Muench says that they are already looking to get a head start on the 2018 budget and are contemplating ways to save or generate money.

"We're looking at user fees, we're looking at everything from charging for parking. Maybe we put in one of those machines like they have in Saskatoon on Main Street and that money would go towards the (Business Improvement District)."

He added that onsite parking at the Uniplex could be an option, as well as service fees, fine increases, a hotel destination tax, facility subsidy decreases or regional contributions.

They will also look at LED street lighting and possible program cuts to try and save some money. 

Muench added that following Tuesday's State of the City address, staff was going right back to City Hall to go over ideas. 

"It's something we have been trying to do since I have been on council. Get at the budget earlier every year so it's not a last minute rush," he explained. "This year I think it's going to be good, because we have a whole year now to sit down and review options, to look at our whole operation and say 'where can we save money'."

Given the news of the provincial budget, it has been an interesting first six months for Muench in the Mayor's chair.

"It's been a challenge. We've had a number of new Councillors as well and I am giving them an A+," he said. "It was almost trial by fire for some of them and myself as well. Nobody likes to get into a new job and find out things are challenging, and I think we have done a good job of putting those pieces together."

Muench's previous experience on council has certainly helped aide him through the early stages of his first tenure as Mayor.

"I knew coming into this how things work and the budget process, and with the city staff we have in place, I am really confident we will be able to take the next step here."

He says that despite all the news regarding budgets lately, there is still plenty to look forward to in the future.

"We're looking at some new retailers that have been poking around town here and some looking at expanding," he noted. "We're doing some awesome work in Centennial Park and solving some problems there."

The Mayor's breakfast was hosted by the Humboldt and District Chamber of Commerce.