Saskatoon City Council said it will explore appropriate legal measures in coordination with SUMA and other affected municipalities - including a court injunction - to stop a provincial government plan that would create an $11.4 million shortfall in City Finances.

“We are not raising taxes today. Instead we are considering every other option available,” says Mayor Charlie Clark. “What is happening is not fair or equal. The provincial government is asking city residents to pay twice for the same service. This is not right and we believe the provincial government should reconsider and explore other options.”

Following a four-and-a-half hour special meeting Sunday afternoon, Council also resolved:

  • To look into the long-term service agreements and options over lease payments from the Province for the P3 school sites including, but not limited to, charging market rent for the land
  • That the Administration report on how much the Province be charged for emergency services and any other services the City provides on its properties
  • That the Administration explore a market rent for the Rights of Way access by Crown Corporations
  • That the Administration report on options for internal savings and revenue
  • That the Administration implement a temporary hiring and discretionary spending freeze until Council can make a decision how to handle this situation, subject to the discretion of the City Manager (in the case of filling positions related to life-safety)
  • That it request a joint meeting with Saskatoon Caucus MLAs from both parties to give them an information session on the impact the 2017 Provincial Budget will have on the citizens of Saskatoon

The City of Saskatoon is facing an $8 million deficit in its 2017 budget after the province announced it was cutting the grant in lieu of taxes program. Crown corporations – SaskPower and SaskEnergy – used to provide grants to communities instead of paying property taxes. Now, the province will take the money – about $36 million. City Manager Murray Totland says the hit will cost as much as running all city leisure facilities and most of Saskatoon’s snow and ice program.

The City has $141 million in reserve money, but that would only provide a one-time solution to the provincial funding cuts.

“It’s a large amount of revenue to simply disappear out of our operating budget with really no means for us to backfill it,” Totland said.

The City needs to balance its budget each year, meaning that council will need to set a mill rate by April to send out a tax notice to residents by the end of May.

City Councillor Randy Donauer suggested a hiring freeze until council decides what to do next. He also said SaskPower and SaskEnergy should pay for fire and police services.

“I’m assuming they want services,” he said. “So we need to provide that for them at a reasonable fee.”

Councillor Bev Dubois said the city could look at service agreements with the province on P3 schools and charge higher lease payments. Zach Jeffries suggested cutting some services or deferring projects.

City officials have made it clear that they feel the province has put them in a tough situation. Council held a closed-door meeting to discuss legal options to take against the province and Saskatoon’s mayor will meet with the Minister of Intergovernmental Affairs on Wednesday for further clarification.

Based on a report by CTV's Mark Villani