Saskatoon

City of Saskatoon still mulling over how to tackle $9M funding shortfall

In the public portion of Saskatoon's Tuesday city council meeting, a $9-million funding shortfall was confirmed.

Shortfall would be equivalent of roughly a 4.45% property tax rate increase

Saskatoon City Council is still trying to deal with a $9 million shortfall after this year's provincial budget. (CBC)

Saskatoon Mayor Charlie Clark confirmed the city is facing a funding shortfall of $9 million after the grants-in-lieu program was scrapped in March's provincial budget.

City council's governance and priorities committee held a special meeting last night to talk about how the city plans to move ahead in the face of the shortfall.

The shortfall is equivalent to approximately a 4.45 per cent property tax rate increase, though the city will not necessarily raise taxes, said city manager Murray Totland.

In 2018, the shortfall is expected to grow to $12.1 million.

Totland said administration has been working on developing a long-term plan to deal with the funding gap. He said more information will likely be released later this week.

Administration has also been talking to staff about the funding gap, to try and ease any anxiety around layoffs.

Meanwhile, Clark talked about a meeting he had with provincial cabinet members, the Saskatchewan Urban Municipalities Association and the mayors of Regina and Yorkton.

Afterwards, the province reconsidered the cuts to grants-in-lieu for nine cities, but Saskatoon and Regina were not included.