The City of Saskatoon will defer more than $20 million in spending that had been planned for next year to help narrow what would otherwise have been a $50.9-million funding shortfall.
The deferral plan was discussed and passed at a special budget meeting on Tuesday. Councillors opted to defer $20 million from planned 2024 spending and push it to 2026.
Councillors had been looking for ways to close the funding gap and reduce the impact of a projected property tax hike.
Last Thursday, city administration adjusted the budgetary gap, leaving it to sit at $50.9 million next year and $21.7 million the following year, amounts that would result in property tax hikes of 17.33 per cent in 2024 and 6.25 per cent in 2025.
The plan passed Tuesday would reduce the 2024 tax hike to 10.44 per cent, down from a previously expected 17.33 per cent.
Options on what to defer came through the 2024-25 Budget Inflationary and Phase-in Decisions report, written by chief financial officer Clae Hack. The report offers up options to defer funding from Saskatoon Light and Power, roadway preservation, Saskatoon fire apparatus, civic building comprehensive maintenance, fuel estimates, the Saskatoon Fire Station phase-in, transit future service phase-in, East leisure operating phase-in, snow and ice phase-in, transit bus growth phase-in and negative contingency.
The inflationary and decisions report said the 11 items account for $27 million, or 51.5 per cent of the pressure the city faces in 2024.
The special budget meeting Tuesday kicked off with North Saskatoon Business Association (NSBA) executive director Keith Moen making seven recommendations to city council, the most prominent being a 10 per cent reduction to city staffing numbers.
“We are not talking about frontline workers, but if you cut your workforce by approximately 430 people, for easy figuring let’s just use $100,000, it might be a little high, but that would be about $43 million,” Moen claimed.
He also claimed that selling parts of the land currently occupied by city greenhouses on 33rd Street and Avenue P would bring in approximately $20 million to $30 million.
“Get back to the basics: roads and infrastructure, protective services, waste management and transportation,” Moen said.
Former city mayor Don Atchison agreed and also noted that the city should put a pause on the downtown event centre and the new public library plans if the city has to look at further budget approvals.
After an entire morning of speakers, Coun. Zach Jeffries motioned that a separate meeting be held including members of city council, administration, the Saskatoon Chamber and the NSBA.
“I think that the NSBA and Chamber broadly speaking, year in and year out, are the two groups that do the most details and global thoughts and recommendations around our budgeting,” Jeffries said.
The motion passed.
Councillors also passed a motion to increase Saskatoon parking fees by 50 cents an hour beginning in 2024 in attempt to close the funding gap, despite back lash from a few councillors.
“I’m not opposed to an increase in parking rate, but only after the appropriate amount of research and study has been done and engagement with the stakeholders and user groups, which is not present with us here today,” said Ward 1 Coun. Darren Hill.
Coun. Mairin Loewen motioned that the Saskatoon Police Service submit its budget to council earlier than usual, as it reflects nearly 22 per cent of the city’s funds.
The motion carried unanimously, offering council and city administration more time in the future to review the police service’s budget before finalizing decisions.
The same will be requested of Saskatoon Public Library board.
Council will meet again in August to discuss further options.
— with files from Global News’ Brody Langager
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