'It just doesn’t make sense': Chamber urging Saskatoon city council to vote against tax increase
With the city council set to vote next week on additional tax increases, the Saskatoon Chamber of Commerce has written a letter hoping to sway against an increase.
The city originally approved a 3.53 per cent property tax increase for 2023, but a report released on Wednesday is calling for it to be bumped up to 4.38 per cent. The increase would add $2.28 million to the city’s operating budget.
In a letter penned on Tuesday, Chamber of Commerce CEO Jason Aebig urged three other options it hopes the city council will consider next week during budget deliberations: to freeze the 3.53 per cent increase planned for 2023, act on cost reductions and options proposed by the city administration to bring the budget back to balance, and to defer hiring 30 full-time positions to address the city’s budget shortfall
Aebig says business owners have based their plans on the 3.53 per cent property tax increase and that another increase would create “unnecessary instability” as many small and medium-sized businesses are in “recovery mode” after the pandemic.
“Let’s not layer on now an additional increase. It just doesn’t make sense,” Aiebig told CTV News.
In October, the city warned it was facing a shortfall of $8.3 million because of COVID-19 and inflation costs. Aebig suggests the current deficit challenge the city is facing isn’t an income problem but a spending problem.
Aebig says 59 per cent of the city’s operating costs are for staff salaries and payroll costs. He says deferring hiring would help close the budget gap.
RUNNING OUT OF OPTIONS
Ward 6 City Councillor Cynthia Block says Saskatoon’s commercial property tax is either the lowest or second lowest in the country, while residential property tax ranks “in the middle of the pack” compared with other prairie cities.
Saskatoon’s Chief Financial Officer Clae Hack says one-time funding will get the city through 2023, but beyond that, they’re running out of options.
“There’s all sorts of reserves we could take this money from, but we would literally be using our savings to pay like a mortgage because it’s ongoing,” Block told CTV News.
Block says in 2021 administration was asked to find $7 million in savings and was able to find $5 million.
“That did come about because there were freezes on hiring and deferring of hires and deferring training and, in many cases, limiting travel entirely,” she said.
Budget deliberations are scheduled to begin at 1 p.m. at city hall from Monday to Wednesday next week.
CTVNews.ca Top Stories
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Broadcaster and commentator Rex Murphy dead at 77: National Post
The National Post is reporting that Rex Murphy, the pundit and columnist who hosted a national call-in radio show for decades, has died.
Pearson gold heist suspect arrested after flying into Toronto from India
Another suspect is in custody in connection with the gold heist at Toronto Pearson International Airport last year, police say.
Millions of cyberattacks per hour as B.C. government investigates multiple breaches
Careful attention to government statements and legislation is required to get a handle on the level of risk British Columbians’ information is under, as investigators probe multiple breaches under a continued barrage of attacks.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Debate on abortion rights erupts on Parliament Hill, Poilievre vows he won't legislate
A Conservative government led by Pierre Poilievre would not legislate on, nor use the notwithstanding clause, on abortion, his office says, as anti-abortion protesters gather on Parliament Hill.
Justin and Hailey Bieber are expecting their first child together
Hailey and Justin Bieber are going to be parents. The couple announced the news on Thursday on Instagram, both sharing a video that showcases Hailey Bieber's growing belly.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
New 'Lord of the Rings' film coming in 2026
The Oscar-winning team behind the nearly US$6 billion blockbuster 'Lord of the Rings' and 'The Hobbit' trilogies is reuniting to produce two new films.