Provincial cuts, downloading costs Saskatoon $59M, city says
City official says costs have 'substantial financial implications' for taxpayers
A report by the City of Saskatoon says provincial downloading and cuts will have "substantial financial implications" for Saskatchewan's biggest city.
It states provincial cuts this year combined with direct and indirect downloading of costs adds up to nearly $59 million.
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Provincial cuts to external community organizations this year:
- Tourism Saskatoon lost $150,000.
- Meewasin Valley Authority lost $409,000.
- Lighthouse Stabilization Unit lost $700,000.
City councillors asked officials to compile the report on March 26, after the province announced it would no longer pay the city grants in lieu of taxes for service to provincial property within city limits, such as the SaskEnergy and SaskPower buildings. That comes out to $11.4 million.
The Saskatoon Public Library have also lost $650,000 in provincial funding. In turn, Saskatoon's libraries have announced they will no longer participate in the inter-library lending system.
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Provincial contributions to the West Nile virus, mosquito control, and Dutch Elm Disease programs totalled $292,500. The city must now decide whether to continue to pay for the programs or to scrap them.
Mike Jordan, the City of Saskatoon's director of government relations, said those costs have "substantial financial implications."
More costs for Saskatoon taxpayers
The report also highlights how the city is out money for giving a helping hand to the province. For instance, it shows land set aside by the City of Saskatoon for the Urban Highway Connector Program is valued at $25 million.
Plus, the city agreed to lease land for eight new public–private partnership schools to the province at a nominal rate. Monday's report indicated that land has a market value of $20 million.
Direct transfer payments from the provincial government to the City of Saskatoon averaged about 12.3 per cent of the city's operating costs between 2006 and 2015. The report notes those transfers hit an all-time-high as a percentage of city revenue in 2011.
Those include money for policing, transportation services, and a one per cent share of the provincial sales tax.
Transfer payments from the province to build capital projects averaged just over six per cent of all Saskatoon's capital budget revenues between 2006 and 2015.
Saskatoon city councillors will meet Monday afternoon to discuss the report and its implications.
Corrections
- A previous version of this story stated provincial cuts to external community organizations this year included Saskatoon Regional Economic Development Authority. In fact, SREDA has not received provincial funding for several years and has a funding agreement with the City of Saskatoon for 2017 to 2020, therefore there have not been any cuts to date.Apr 12, 2017 10:37 PM CT