North Battleford is considering legal action against the Saskatchewan government over cuts to the grants in lieu program.
City council approved a resolution on Monday evening to come together with other communities and the Saskatchewan Urban Municipalities Association to develop a plan for the province to fulfill the terms of grants in lieu contacts.
READ MORE: SUMA calls on Saskatchewan government to reverse payments in lieu decision
Failing that, city council said other means should be explored to recover the payments, including legal action.
The grants in lieu of taxes are paid to municipalities for SaskPower and SaskEnergy.
Removing the grants leaves North Battleford with an estimated $1.1 million funding shortfall – about 42 per cent of the revenue sharing the city received in the 2017-18 budget, according to data from Saskatchewan Urban Municipalities Association (SUMA).
“If we were to go to our property tax payers to make up the difference, which definitely has to be an option that we explore, we’re likely looking at a 12 per cent increase,” North Battleford Mayor Ryan Bater said.
The Saskatchewan government announced in its 2017-18 budget that it was discontinuing the payments.
Many municipal leaders said they received no notice that the grants, which date back to the 1950s in North Battleford, would end.
“It was sleight of hand. They certainly weren’t forthcoming when the budget was announced last Wednesday,” Bater said.
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Premier Brad Wall said he mentioned grants in lieu at conventions for both SUMA and the Saskatchewan Association of Rural Municipalities.
“You do some general pre-budget consultation and we knew the municipalities wanted to be kept whole and we knew that probably wasn’t going to happen because everyone has to share in this,” Wall said.
Saskatoon city council is seeking a court injunction to prevent the government from cutting the grant payment.
Saskatoon Mayor Charlie Clark, Regina Mayor Michel Fougere and other municipal leaders are scheduled to meet with cabinet members on Wednesday to discuss the grant cut.
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