Spectacular growth straining city: official
"The bottom line is, we just need further help," Mayor Don Atchison said Wednesday
Lori Coolican, TheStarPhoenix.com
Published: Thursday, April 17, 2008
Rather than cut programs and services, city council's budget committee chose to boost the City of Saskatoon's operating revenues Wednesday night in an effort to reduce an ominous 8.3 per cent proposed property tax hike to 6.9 per cent.
If the provincial government carries through on its last-minute pledge to increase its revenue-sharing by a further seven per cent - which equates to an estimated $1.2 million, the hike will be further reduced to about 5.7 per cent.
"The bottom line is, we just need further help," Mayor Don Atchison told reporters after the meeting concluded.
Mayor Don AtchisonView Larger Image View Larger Image
Mayor Don Atchison
The city budget will not receive final approval - and the true size of the tax hit for property owners won't be known - until later this spring, after the provincial money is confirmed and the board of police commissioners reports back to council with its revamped budget.
To boost revenues, the budget committee agreed to dedicate $500,000 from a proposed $4-million annual contribution to reserves from Saskatoon Light and Power to the general operating budget, taking half a percentage point off the proposed tax hike.
It also approved the diversion of $360,000 in funds earmarked for the city's bridge maintenance reserve, dropping the hike another .36 per cent.
Infrastructure services manager Murray Totland had eloquent words of warning for councillors - and perhaps higher levels of government - about the financial effect of the spectacular growth and economic prosperity Saskatoon has enjoyed of late.
In about 25 years of working on budgets for the city, this is one of the most difficult he's experienced, Totland said.
Without doing more than maintaining the status quo, his department still needs a 6.16 per cent increase to its operating budget - and the same will likely be true for the next several years, he added.
The city is experiencing "the true impact of growth," Totland said. "If you were to ask me if this is sustainable, I would have to say no."
It's an illustration of the city's desperate need for a richer, more reliable system of revenue-sharing from the federal and provincial governments, both of which have profited from the boom, Atchison was quick to note.
Coun. Myles Heidt said he was troubled the committee had earlier agreed to spend $40,000 on a new program to subsidize the spaying and neutering of low-income residents' pets, then passed a bare-bones infrastructure budget.
Infrastructure programs are core services that should rightfully be expanded during a time of growth, he said.
Coun. Maurice Neault argued in favour of diverting about $30,000 from the Mendel Art Gallery's portion of the civic budget - essentially forcing the gallery to cut its services - in order to keep the soon-to-be cancelled Crescent Shuttle buses operating as Access Transit vehicles during the six coldest months of the year.
Without extra funds to run them, the addition of the two buses to the Access Transit fleet will simply result in two lift-equipped buses being taken off the street, transit manager Jeff Balon told the committee.
Demand for Access Transit subscriptions outpaces the supply of rides - and subscribers do pay for the service - which they need in order to get to work or school, Neault noted.
"They're players is this economy. . . . It's important that we look at it in that perspective."
Neault's proposal was defeated.
A majority of the committee also voted against a motion from Coun. Glen Penner to take $250,000 in revenue from Credit Union Centre's profits and dedicate the funds towards a further reduction of the rate hike.
The committee voted to dedicate 100 per cent of the revenue generated by the recent increase in parking meter rates - expected to be about $472,500 - to the operating budget, despite a request from all three central business districts to have half the money devoted to streetscape improvements along Third Avenue.
Councillors also agreed to raise parking meter rates by a further 25 cents in 2009, then devote all the additional revenue to the work on Third Avenue so that it can proceed in 2009, 2010 and 2011.
That will bring the price of parking at a city-owned meter anywhere in Saskatoon, except the Riversdale area, to $1.75. Until recently, the price was $1.
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As well for all of those who have an issue with the new 4 story building going up by north prairie. Send them an email, I did and they replied with positive results. So send your suggestions and some photos to help and maybe we can help create a more beautiful building
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