SASKATOON -- Provincial infrastructure stimulus funding could be used for City of Saskatoon capital projects and plug a looming operating deficit.
In a report, city administration says the city is expected to get an estimated $35.5 million from the province’s Municipal Economic Enhancement Program (MEEP).
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“The Administration is proposing a strategy for allocating and leveraging MEEP funding. The primary objective of the strategy is to maximize the benefit from the funding by achieving the goals of the program while simultaneously reducing the City’s projected operating deficit,” the report reads.
Administration says it would put $20.5 million immediately towards capital expenditures.
Those projects could include ones which were previously considered by council but are unfunded, or projects which have funding plans that include future debt or mill rate increases.
The other $15 million could offset the projected operating deficit. The funds would initially be put towards already funded capital projects, with the original funding from the city returned to a reallocation pool.
“To accomplish this, the Administration is proposing to reallocate approximately $15 million to this pool that will be held until such time it is known if the federal government will provide financial relief to the City. Should these held funds not be required, they would be released for future capital projects or other one-time expenditures,” the report reads.
Last month, a report from the Chief Financial Officer estimated an operating deficit of between $10 million and $33 million for 2020 primarily due to revenue losses related to measures to try and stop the spread of COVID-19.
The issue is on the agenda for the next city council meeting on Monday at City Hall.
