SASKATOON -- Saskatoon city council has taken steps to reduce a projected deficit by $9.5 million in 2020, and the city says it doesn’t expect to pass the deficit onto taxpayers.

Depending on when the provincial government lifts public health restrictions and city operations return to normal, the city of Saskatoon is projecting a deficit between $10.1 million if public restriction are lifted by June 30, and $32.9 million if restrictions are lifted by Dec. 31.

These projected numbers include the $9.5 million city council approved in service level changes on Monday.

The  projected deficits  are largely due to revenue lost during the pandemic including revenue lost from bus fares, parking meters, leisure centre closures and utility revenue. 

The city’s report shows the property tax and utility payment deferral program is costing the city around $620,000. Earlier this month the Greater Saskatoon Chamber of Commerce asked the city to extend these deferrals until Dec. 31.

A report prepared by several civic departments, led by the chief financial officer Kerry Tarasoff, the city found savings in form of fuel costs reduction, reduced workforce and stabilization reserves. 

Under recommendations from the city’s administration, city council also approved a few service-level changes to shrink the deficit, including changes to curbside garbage collection, a reduction in the number of hires for parks. 

The city recommended delaying weekly garbage pickup by two weeks to mid-May. This measure would save the city $25,000.

The city also recommended taking $2.8 million from the Fiscal Stabilization reserve fund and $2 million from other reserves. Limiting travel and training at city hall will also save the corporation $1.2 million.

About $1 million will be saved be not hiring 78 park labourers this year.

Street sweeping and pothole patching will continue as expected. However, the city said it will not be ticketing vehicles that do not move off the road when the street is being swept.

City council debated compliance without ticketing, however, because administration did not want people who may be self-isolating going outside, the recommendation to not ticket was approved.

Tarasoff said whatever deficit remains, will be pushed over and dealt with in the 2021 budget. 

“Many impacts will be felt into 2021 and beyond,” he said. 

Not considering property tax hikes

City manager Jeff Jorgenson said he was working with his administration to look for savings internally and is not considering tax increases at this time. 

“There has been talk about this meaning tax hikes,” Jorgenson said. “I want to ensure council and the public that the strategies don’t rely on tax increases. It wasn’t even something we contemplated administratively.”

Mayor Charlie Clark prefaced the report as optimistic that public health restrictions will be lifted sooner than later. 

“The context of the report is optimism,” Clark said, adding if the number of COVID-19 cases sees another increase and the provincial government turns the clock back a month or two, the city will respond accordingly. 

“This is the best-proposed strategy. We might have to switch direction if things change.”