News Releases

City Council has endorsed a plan to maintain core services while responding to the COVID-19 pandemic.

“We will be using a combination of spending reductions and utilization of the City’s stabilization reserves to offset a significant portion of the deficit” says City Manager Jeff Jorgenson. “The strategy does not rely on a further tax increase to address this deficit. We will continue discussions with other orders of government on possible assistance.”

If there is a remaining deficit that is not covered by relief packages, the City will consider making adjustments to the 2021 operating and capital budgets.

One key service that will be delivered in typical fashion is the street sweeping program. This year, due to a late start to the program because of a late spring melt and different operating processes due to COVID-19, the program will take a little longer – into July to finish rather than the usual June end date.

Additionally, the 2020 budgeted construction projects will go forward this year.

However, most water projects with lead line replacements will be deferred until later this year or to 2021 says Terry Schmidt, General Manager, Transportation and Construction.

“We will take a look later this summer to see how people may be adjusting to the pandemic, and make a determination of whether it makes sense to proceed with the lead line replacement program,” Schmidt says. “If it’s not possible, we will defer until next year.”

Council supported the overall recommendation to continue with budgeted construction projects for the 2020 season.

“We need to keep City assets in shape,” says Mayor Charlie Clark. “We’re looking at some $390 million in financial activity to keep the economy going and businesses being able to hire people.”

In compliance of the Public Health Order, the City continues to work with its partners in the construction industry to ensure appropriate physical distancing and other appropriate safety measures are in place at such work sites.

The COVID-19 pandemic has had wide and deep effects on City work and finances; as a result, the Administration has developed a comprehensive strategy to mitigate the impacts.

“The pandemic has been like nothing most of us have ever experienced in our lifetimes,” says City Manager, Jeff Jorgenson.

“The impacts of the pandemic have had a profound impact on the City’s finances. While sobering, we feel the situation is manageable, thanks to the prudent financial management practices in place. The proposed strategy the Administration is presenting to City Council on Monday includes a balance of:

• maintaining civic services;
• reducing expenditures;
• utilizing fiscal stabilization reserves; and
• continuing to work with other orders of government on solutions.

“The strategy we are recommending will need to be gradual and will take time. If the financial response is too severe, our diverse economy and citizens will be negatively affected. By maintaining services as much as possible, we can continue providing citizens with the quality of life they deserve and expect.”

Jorgenson says the City plays an important role in our local economy with our capital programs, which are essential to maintenance of the City’s assets like streets, roads, and underground utilities. 

“Deferral of these important capital works would only result in the City falling behind in infrastructure renewal. Through proposed continuation of our capital programs, the City will continue to serve an important role in keeping our community working and continue the important investments in our infrastructure.”

The financial details are outlined in a report set for discussion at the meeting of City Council Monday, April 27.

In the wake of the provincial government’s plan to re-open the Saskatchewan economy, the report looks at three financial impact scenarios of when physical distancing restrictions could be lifted and services reopen.

The total estimated negative impacts of COVID-19 on the City of Saskatoon for the three scenarios are:

• Restrictions End June 30 – approximately $32.2 million
• Restrictions End September 30 – approximately $52.7 million
• Restrictions End December 31 – approximately $68.6 million

However, there are offsetting savings attributable to item such as fuel cost reduction, reduced workforce, reduced bulk power charges, and utility stabilization reserves. With these savings included, the preliminary projected preliminary deficits would be:

• Restrictions End June 30 – Deficit of approximately $20.2 million
• Restrictions End September 30 – Deficit of approximately $32.0 million
• Restrictions End December 31 – Deficit of approximately $43.0 million

Through the Federation of Canadian Municipalities, the federal government is being asked to consider a relief program for the municipal sector, but the outcome of the request is uncertain.

However, the Administration has proposed several options to manage the remaining COVID-19 shortfall, including:

• Hiring freeze;
• Non-essential spending freeze;
• Travel and training reductions;
• Cost reductions for park maintenance due to reduced staffing levels; and
• Use $2.8M of fiscal stabilization reserve in 2020; hold remaining $2M for 2021.

Factoring in these savings totalling $9.5 million for 2020, the remaining projected deficit would be reduced to:

• Restrictions End June 30 – approximately $10.1 million
• Restrictions End September 30 – approximately $22.0 million
• Restrictions End December 31 – approximately $32.9 million

If the Administration’s recommended strategy is approved, the City will have offset the majority of the negative impacts of COVID-19.  For example, for the September 30 Scenario, savings of $32.7 in total will offset the $52.7 million of negative COVID-19 impacts, resulting in a net projected deficit of $22.0 million.

As the situation continues to evolve, the Administration will be able to update financial projections. Additionally, ongoing discussions with other orders of government on possible assistance are occurring.  Considering this, the Administration is not recommending substantive changes to infrastructure renewal or service delivery strategies other than those outlined in this report.

If there is a remaining deficit that is not covered by relief packages, the Administration recommends City Council consider making adjustments to the 2021 operating and capital budgets.

“Taking this approach will allow the City to adapt to the ever-changing landscape in front of us, and will allow us to provide an economic stimulus role – this year – in 2020 – with construction and other capital projects already in the budget,” Jorgenson points out. “We’ll then be able to continue working with the other orders of government on relief solutions.”

Read the full report here. 

The City supports the provincial government’s Re-open Saskatchewan plan with a reminder that we all need to keep physical distancing and established protective health measures in place while it slowly unfolds.

“The whole country will be watching us. Our success will rely on everyone taking this virus very seriously and following all of the precautions. We want Saskatchewan to succeed in this careful and phased re-opening,” says Mayor Charlie Clark.

“Between now and May 4, I believe there are three key areas of risk that we will need to work with the Province on: ensuring and supporting businesses that re-open to be able to follow the rules and have the equipment necessary to remain safe; greater clarity around the rules for social gatherings; and fixing ongoing gaps in the vulnerable population strategy that is continues to see too many people remaining unsafely on the streets.”

Released a day ago, Thursday, April 23 the Re-open Saskatchewan plan is a five-phase plan aimed at slowly lifting restrictions so more businesses can re-open and more employees can go back to work.

City Manager Jeff Jorgenson says the City has done many things to flatten the curve of COVID-19 cases in Saskatoon.

“We’ve made many staffing and service changes so that our employees can safely deliver services to our community, and will continue to be vigilant. The province has not changed its direction to citizens and employers with respect to social distancing, so nothing has changed in that regard,” he says. “With the provincial plan now launched we are working on plans and options for opening our golf courses and campground.”

Emergency planners will continue to play a central part as the Re-open plan rolls out, says the Director of Emergency Management Organization.

“The bottom-line is: we are all continuing to live under a State of Emergency and a Public Health Order,” says Pamela Goulden-McLeod. “We have to keep practicing physical distancing measures so that all the hard work we’ve done as a community is not put as risk while we slowly re-open the economy.”

A package of administrative reports focused on the pandemic response will be later today placed on the City Council Agenda for its meeting Monday, April 27.