Steinbach city councillor Cari Penner says there is confusion among some taxpayers about the reason for a tax increase in the city's 2017 budget. The 5% property tax hike will raise an 

Cari Penner additional $630,000. Penner says there is a perception by some people who are under the impression that the tax hike is related to the proposed Performing Arts Centre which, she adds, is not true.

"The 5% tax increase this year is solely to fund the increase in policing costs that will come as a result of us having reached the threshold of over 15,000 people. The Performing Arts Centre is not in that increase at all. The increase is solely for the purpose of policing costs. It's important that people understand where the money is coming from and where it's going. It's easy to be confused about the city's finances. So the message is the tax increase of 5% is solely for the purpose of policing costs."

As for the city's commitment of $7.5 million dollars to the Performing Arts Centre, Penner says $5 million is coming out of city reserve funds and the other $2.5 million will be borrowed and paid back over five years.