City Proposes How to Address Provincial Budget Cuts While Keeping Taxes Low; Maintaining Civic Services and Jobs

The Provincial budget is having a large impact on our city.  Because of the sudden changes announced by the province, the Administration has prepared an emergency report with some ideas for lessening the financial impact on citizens. The Province’s one percent increase of the PST and its cut to the Grants-in-Lieu of taxes (GILT) program have left the City of Saskatoon with $9 million hole in this year’s budget and $15 million in each of the following years. 

“City Council has two goals for how we want to respond to these cuts,” says Mayor Charlie Clark. 

“We need to find a way that mitigates the impact on taxes for residents, as well as maintaining the services that provide quality of life and keep the engine of our economy going.”

Administration based their recommendations on principles that included:

Keeping any property tax increases to a minimum, and service levels up;

Adjusting all options – how we spend, and the cash collected in fines and fees;

Short-term solutions that are doable this year as well as longer-term ones;

Back-filling the provincial budget hole without dipping into reserves;

Maintaining jobs.

"A wide range of solutions has enabled us to keep any possible property tax hike as low as we could," says City Manager Murray Totland.

Totland adds with the proposed 1.69% increase to cover the provincial shortfall, the total change over the 2016 City property tax bill -- on an average house assessed at $325,000 -- amounts to $56 per year or $4.70 per month.

A report on the City Operating Budget options will be presented to the Governance and Priorities Committee Monday, April 10, 2017.

“Council will discuss these options and determine the best way forward in this difficult situation,” Mayor Clark says.