'You've stepped in it': Saskatoon city council works to tackle projected $51 million funding gap

Saskatoon city council sat down again Tuesday morning to chart a course to tackle a projected budget shortfall of nearly $51 million for next year.

City administration first publicly warned of the funding gap in early June, floating an eye-popping tax increase of 17 per cent if no savings were found.

Since then, both city councillors and administration have stressed that the number will likely be much lower.

Keith Moen, the executive director of the North Saskatoon Business Association, addressed council at the start of Tuesday's special committee meeting.

"The state of the city's financial affairs — you've made this a topic of conversation not only at the watercooler, but among parents at children's birthday parties, for instance, and campfires around Saskatchewan — all by people who normally don't give a hoot about civic affairs or politics," Moen said.

"In other words, you've stepped in it big time and everyone is watching."

The NSBA has joined the Saskatoon Chamber of Commerce in calling for cuts to staff.

The organization is asking council to conduct an external human resources audit with a goal of eliminating 10 per cent of positions.

"I have to emphasize there's an opportunity here to bring down your HR costs without truly impacting these people in their families because they're going to be gobbled up in no time in the private sector," Moen said.

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"The labour market is incredibly hot for all types, particularly professional skilled help."

Among the NSBA's asks are a pause on capital projects, spending on environmental initiatives and the liquidation of the city's beleaguered greenhouse facility.

Moen also did his best to raise eyebrows about city employees who work remotely.

"I think the HR audit would also look at the work-from-home policy that the city is conducting and finding out exactly how much work is being done from home," Moen said.

"I think it'll also determine where home is for some of these people that are working from home. It's my understanding that not everybody is in Saskatoon or even the province or the country for that matter."

Tuesday's meeting included many spillover items from a June 22 committee meeting where councillors first began considering cuts, but made little progress.

The items up for consideration outline potential cuts or fee increases that would help balance the ledger in different city departments.

The administration recommendations run the gamut from hiking parking rates by 50 cents an hour to raising pet license fees by 10 per cent and closing the city's East Compost Depot and cutting landfill operating hours.

Former Saskatoon mayor Don Atchison also stepped to the podium, expressing dismay about the city's financial direction

"There's different areas that have been cherry-picked to talk about. But what really are the priorities of this council? I believe the priorities are protective services — police, fire transportation, roadway snow removal, housing, affordable, attainable housing," said Atchison, who unsuccessfully ran to reclaim the mayor's chair in 2020.

The man who took it from him in 2016, did his best to rein in his council colleagues during the first portion of Tuesday's committee meeting, trying to steer a more general discussion towards the line-by-line options proposed by administration, each requiring a decision.

"We don't have to have a big debate about each one. But if we try to do it more generally, where we're talking about the different options, like different councillors talking about the different, bringing up questions that jump around, I think it'll be difficult to follow," Mayor Charlie Clark said.

After returning from a short break, the committee began considering an administration proposal that promised to make a substantial $20 million dent in the funding gap by delaying spending on a smattering of big-ticket "phase-ins" — with money earmarked for areas such as Transit expansion, increasing snow and ice removal capacity and the opening of a new fire station in 2026.

While the money would be added back in time for the fire station's opening and administration said there would be no impact on public safety, Ward 3 Coun. David Kirton was uncomfortable with Saskatoon Fire Department's inclusion on the list.

"I came into … this meeting today with the plan or with the thought that the protective services, especially fire, would not be touched," Kirton said.

"I also don't want to see us hit with that extra $2.5 million-plus in 2026," Kirton said, referring to cost the city will face when it comes time to pay up when the fire hall opens.

The plan to delay the phase-ins passed, with some tweaks courtesy of an amendment by Ward 2 Coun. Hilary Gough that would leave more money for the snow and ice removal fund intended to help the city confront future large-scale winter weather events.

Prior to Gough's amendment, the $1.61 million for the snow and ice phase-in would have been cut by half, but with the change, it would be cut by 40 per cent.

Any fiscal options approved or defeated at the committee level will not be finalized until council holds its budget meetings later in the year.  

After passing the large swath of deferrals, councillors set to work going through the more granular options offered by city administration, starting with the city's transportation budget.

One of them is a proposed increase of 50 cents to hourly city parking rates, which have remained unchanged since 2010.

The motion was carried without the support of Kirton and Ward 1 Coun. Darren Hill.

"It appears to be low-hanging fruit that the administration picked simply to find a dollar amount," Hill said.

According to city administration, the increase would lead to an extra $1,070,000 gross, which would work out to $535,000 in extra money after expenditures.

Councillors also voted in favour of measures such as making residents pay the 15-cent fee the city is charged each time the city's parking app is used, the move would lead to an extra $60,000 after expenses.

The committee also agreed in principle to an administration proposal to reduce security funding at the city yards, where vehicles and equipment are stored and maintained, cutting it by half, from $128,000 to $64,000.

Councillors slogged through the afternoon as they were asked to consider a number of line-by-line options to defer the hiring for a variety of full and part-time transportation and Transit positions.

The discussion led to some heated moments after city manager Jeff Jorgenson took exception with the way Hill was interacting with city staff

"I would appreciate if the questions were questions instead of debating with or challenging the administration on the answer that's already been given," Jorgenson said.

Hill was also taken to task by the mayor after he referenced texts he said he was receiving during the meeting.

"I've just been receiving texts that we have way too many supervisors at Transit ... if we keep going at this rate, we're going to have one supervisor for every worker," Hill said.

"You are clearly getting some information that none of us are aware of. It's from a source that we're not aware of. That is leading to some evaluation, of some of the much more nuanced details of Transit, that I would say is not a good governance way of trying to address this," Clark said.

With around 45 minutes left in the day-long meeting, Clark asked city administration "if there's any updates in terms of where this leaves us in terms of the changes to the funding gap."

"As we get ready to move on to the last bit ... this is it's not easy work. I know my brains getting a bit foggy trying to keep track of everything."

The committee was informed that if the accepted proposals all moved forward, it would result in $21.2 million in savings — meaning a 10.5 per cent tax increase would still be needed.

A third budget meeting is scheduled for next month.