City Hall proposes new tax levy to pay for snow removal

Two big snowstorms in three years are forcing the City of Saskatoon to re-examine how to fund the costly cleanup effort.

The activation of the city’s roadways emergency response plan after the snowstorms over Christmas prompted city-wide snow grading and removal.

At Tuesday afternoon’s Governance and Priorities Commitee meeting, councillors discussed a city report that proposed adding a new levy to property tax bills to cover the cleanup and create a nestegg. The four-year property tax phase-in would equal 0.75 per cent and begin in 2024.

“A levy would not only repay the borrowing for the 2022 snow event but would also put money in a reserve to fund future responses,” said Clae Hack, chief financial officer for the city.

There was some concern from residents that taxes would increase beginning Wednesday, but that will not happen, according to Coun. Troy Davies.

“Taxes are not raising tomorrow. This is a conversation that is going to the future budget where council has the opportunity to put it to the mill rate where we’ll all be held accountable or find savings in other areas or cuts in other areas that we have to use to pay for this 0.75 per cent,” Davies said.

The city currently budgets $14.9 million annually for snow and ice management, but neighbourhood street grading and snow removal is not included in the budget.

Davies and his colleagues were in agreement on trying to find ways to prevent applying this extra cost on to taxpayers.

“I don’t think this should go on taxpayers’ backs, the 0.75 per cent. I think that us as a council are going to have to make some tough decisions and find those dollars within current budgets to help save taxpayers,” Davies added.

The city estimates the bill to cart away all the snow piles from the Christmas storms could reach $20 million, which is $6 million more than the storm in 2020 because of more snow and higher fuel costs.

“Snow removal is a costly undertaking because it requires a variety of equipment, extra operators and lots of hauling costs,” Hack said. “However, it’s necessary to restore sight lines at intersections and the full width of driving lanes for safety reasons, and parking availability along streets.”

It was laid out by city administration that this 0.75 per cent would not change the base level of service provided by the city and it would only be put into a reserve fund and be used for emergency weather situations.

Other options councillors considered are using cash from reserves and deferring capital projects.

— With files from 650 CKOM’s Steve Seto