Letter to Citizens

Fellow Citizens,

I want to add a bit more perspective and clarity on information circulating in the community on the City’s use of external consultants. Many of the comparisons that you may have seen, heard or read are incomplete. In the interest of ensuring you have the ability to compare apples to apples, we want to set the record straight.

While a surface-level review suggests that we have a different approach to hiring external consultants than other cities, the reality is that we have a different approach to reporting. Our administrative report includes all spending on consultants and contracts, which goes beyond the spending reported in many other communities.

I will expand on this below, but consultants and contracts allow us to obtain specialized skills we don’t keep in-house and to meet the demand of surge periods while holding the line on creating permanent full-time city jobs.

Recognizing the depth of our reporting is necessary to fully understand our spending. 

The Background

In response to a question in the January City Council meeting, we prepared a thorough, open and transparent report on costs related to the City’s use of outside advice and services. Given the interest in this subject, we felt a full report to City Council and the public was appropriate.

The facts are:

*All external consultant costs were approved in the 2015 Business Plan and Budget. We have not taken on additional or unexpected costs that were not approved in the budget process.
*The City invested $16 million or 4% of our total City budget on advice and services in support of capital projects – addressing an unprecedented need for construction projects made necessary by an unprecedented period of growth in our community.
*The City invested $2.6 million or 0.4% of our total City budget on advice or services to the City for operations. For example this includes $213,000 for internal audit services that are more cost effective to outsource.

Finding Accurate Comparisons

To be clear, the report to be discussed at the Finance committee next week includes all costs where an external consultant or service provider participated in our work. This ranges from preliminary planning and concept studies to using outside help to design and manage a project.

In other words, we cast a wider net than what it appears other municipalities may have reported to their citizens. We believe this level of openness is the most responsible way to report to citizens.

For example, if we were to compare referenced information from the City of Regina on consultants hired for planning studies or strategic policy advice with what Saskatoon spent on the same, our expenditures would be in the neighbourhood of $1.8 million (including $1.6 million on capital projects).  This is in line with the $1.75 million spent by the City of Regina in 2015.

Listening to our Community

The City of Saskatoon has experienced significant growth over the past decade and we have acted to address the priorities identified by our citizens – more notably traffic congestion, roads, bridges and infrastructure.

The money spent on capital contracts and consulting is due in large part to our rate of growth and infrastructure development.  Saskatoon outpaced most Canadian cities over the past number of years with an infrastructure investment of $500 million. It’s like we have been “building” another Humboldt or Melfort for the past several years.

As part of this, the City also develops land that, in turn, delivers a dividend to its citizens and helps pay for that growth and infrastructure.

We have turned to consultants as a responsible and prudent approach, allowing us to meet the demands of a growing city while controlling the growth of full-time city staff positions. The City performs its due diligence on quality assurance to further enhance accountability and to confirm the services we provide are in line with best practices.

Taking all these factors into consideration, a proper comparison requires an examination of a city’s economic growth and a common standard of reporting.

We always have your economic interests at heart and will continue to recommend work to City Council when we believe it is time and cost effective to do so.

Kind regards,
Kerry Tarasoff
Chief Financial Officer