Property tax and parking ticket increase proposed to offset budget shortfall

Saskatoon councillors discussed ways Monday to deal with the city’s budget shortfall in a city governance and priorities meeting.

The city is in a $9-million hole after the provincial budget cut millions of dollars in grants paid by SaskEnergy and SaskPower in lieu of taxes. The one per cent PST increase has also contributed to the city’s shortfall.

Councillors agreed to not dip into reserves, leaving the city to come up with ways to offset the shortfall.

Councillors voted in favour of the following:

-          Deferring the snow and ice levy ($1.2 million)

-          Freezing city staff wages, except those in the public library ($3.5 million)

-          Increasing the price of parking tickets, from $20 to $30

-          Increasing the return on investment from water utilities ($1 million)

-          Raising property taxes by 0.93 per cent

The recommendations are not yet final. The suggestions must be approved by city council on April 24.