Saskatoon city council making cuts, dipping into reserves but say no tax hike
Relief package from other levels of government identified as possible help
The City of Saskatoon is making cuts to expenses and dipping into reserve funds to keep essential services going during the COVID-19 pandemic, but there are no plans for a tax hike.
The city is looking at a budget deficit of about $32 million by the end of 2020, even after money saving measures and cuts have been implemented.
"Relief from the federal and/or provincial governments could assist in filling the gap. If relief is not provided, the city must find a way to balance the budget at year-end," said Kerry Tarasoff, chief financial officer, in a report to council.
Municipal governments are bound by provincial legislation, the Cities Act, to post balanced budgets on an annual basis. Any deficit from 2020 would be added onto the bill in 2021.
Tarasoff wrote that budgets are balanced in those situations by raising property taxes.
Council voted near unanimously — with one dissent from Coun. Darren Hill — at Monday's meeting to various cash-saving measures.
The city says "most" water projects with lead line replacements will be deferred until later in the year or even the next.
Construction planned for 2020 will continue on as scheduled. Mayor Charlie Clark said in a press release that will be about $390 million worth of "financial activity."
The street sweeping program will start later than usual but will run on a monthly schedule. Hiring will be reduced, unless essential and approved by the general manager. All measures taken will save the city about $9.5 million.
The Canadian Federation of Municipalities has requested a municipal relief package for cities in the range of $10 billion to $15 billion dollars to maintain essential services.