Saskatoon city council hears reports, funding requests on Day 1 of 2021 budget deliberations

The first of two days of intense budget deliberations for Saskatoon city councillors saw them receive reports from boards and corporations, requests for money in 2021, and an overall picture of where the city stands financially.

Right now, there’s a $21.76-million hole in the operating budget, which needs to be filled. Some municipal budget adjustments to the tune of $2.7 million have been made, while another $19.05 million in 2020 federal Safe Restart Funding may also be applied.

That doesn’t account, however, for any additional budget costs or funding requests.

Administration is also hoping to keep property taxes at the previously approved 3.87 per cent. The 2021 budget was passed in principle in November of 2019, with the stipulation that it could be adjusted if necessary.

Chief financial officer Kerry Tarasoff said “there’s a fair amount of risk built into this budget,” to the tune of anywhere from $6 million to $7 million. However, administration is hoping that — or nearly counting on — the fact that because so many cities are in the same boat with additional COVID-19-related expenses, more federal dollars could be on the way in 2021.

The same hope goes for more provincial money.

At the meeting’s outset, city manager Jeff Jorgenson explained there had been $55 million in funding provided this year by both the federal and provincial governments, some of which could be used as cities see fit. Without that money, the city’s budget would be “decimated.”

He added, however, that “the pandemic won’t define Saskatoon in 2022 and beyond.”

Council passed a motion to increase the “Take It Outside Winter Animation Fund,” from $250,000 to $300,000 after Coun. Hilary Gough proposed an amendment for a public washroom support pilot project.

The fund was touted by Mayor Charlie Clark during his re-election campaign, as a way to help get residents outside and enjoying COVID-safe activities this winter.

TCU Place and SaskTel Centre representatives indicated that while they expect to be in a deficit position in 2021, the shortfalls would be covered by reserves.

The Saskatoon Police Service asked that its budget be revisited, to increase it by $498,300 for adding another five special constables. It would be reduced or offset by what Chief Troy Cooper described as $85,800 in energy savings. The total funding request would then come out to $412,500.

The Saskatoon Attainable Housing Program is also facing a shortfall because reserves are nearly depleted. It would need at least $430,000 in funding to meet needs and demands in 2021.

After a verbal budget summary was presented by finance director Kari Smith, both Coun. Bev Dubois and Coun. Randy Donauer suggested they hoped property taxes could be lowered by one point, or $2.5 million.

“There’s a $2.6-million project coming to committee next year. That’s actually more than the one per cent that I’m asking for, so I really don’t think that there’s been much digging done to find some savings,” said Donauer.

Coun. Mairin Loewen also asked administration whether council’s budget had been touched and was told that while $3,000 had been taken out of the training budget, the travel budget had not been reduced. She too indicated she would have a motion Thursday to address that.

Ultimately, both Jorgenson and Tarasoff explained that should any deficits remain after council makes its decisions, there is still anywhere from $180 million to $200 million in reserves that could be used. However, that would come as a last resort.

The budget review will continue Thursday afternoon with plans for motions and budget adjustments if necessary.