Two Saskatoon councillors not happy with how administration announced budget shortfall

Reaction is continuing to trickle in after last week’s bombshell news from Saskatoon city hall.

The city is facing a $52.4-million budget shortfall in 2024 because of the rising costs of various different projects that were approved by council.

If the city doesn’t cut costs, homeowners could be faced with an 18 per cent increase to their property tax.

That number stunned Ward 3 Coun. David Kirton.

“It’s a staggering number. That’s an unacceptable number. We’ve got some really tough months ahead of us,” Kirton explained.

The news has frustrated many in Saskatoon and that has displeased councillors and their constituents.

Ward 1 Coun. Darren Hill and Ward 5 Coun. Randy Donauer aren’t pleased with the released figures, but also with how administration dropped such a major item on their desk without any set plan to fix things going forward.

“We don’t get these administrative reports any sooner than the public does. I think it was quite a shock and I was a little disappointed there wasn’t a mediation plan released with (the shortfall report),” Donauer explained.

“I know council has to make all the final decisions, but if you’re going to release something like that to the public talking about what the financial plan is and how there might be a shortfall, at the same time, I think you need to release a plan with some options to let the public know we’ll be accommodating this. Obviously, a tax increase like this is unacceptable.”

Hill was equally surprised.

“I was shocked that administration would even table a document like that,” he said. “It’s irresponsible of them to put that concern and fear into the citizens of Saskatoon without first having more work done on the entire budget review and operations of the corporation.

“The administration should’ve spent a great more deal of time reviewing every single operating line and every single full-time employee within the corporation before even presenting and tabling a budget,” he added. “Tabling an 18 per cent budget increase is ridiculous.”

Donauer noted he’ll have a lot of questions for council about how things got to this point.

“My understanding is a lot of expenses have gone up 30 per cent and revenue is still down from COVID. I think some things were pushed down the road that we didn’t want to do a few years ago and they’re bringing them back this year,” Donauer said.

“We’re going to have to see how their forecasts could come up with this and why they would release a forecast like that without some sort of modifications. Obviously, we aren’t going to impose a tax increase like this anywhere near that.

“If what you’ve been mandated to do for the next two to three years is more expensive than the revenue you’ve got, fine, you can tell us that. But then tell us what the plan’s going to be to change that. To just release a number like that is a little bit irresponsible. I’m a little disappointed with how this rolled out.”

While he’s frustrated with how all of this has played out, Donauer thinks the emergency summer meetings could be a good thing for council.

“By moving some of those discussions over to the summer, we can ask those questions and get them back in a week or a month down the road and have all that information before budget,” Donauer explained. “So if I want to cut something, it’s a more educated vote and I know what the ramifications and what the risk level is. It’s really tough to do that at the end of the year when you only have a few weeks to work with.

“We’re hoping we’ve got more time to examine some in depth proposals and identify some savings,” he added.

Hill had a similar reaction about the shortfall to that of Kirton.

“There are some mitigating factors identified in the report and impacting what the budgetary issues are. But as we look back on previous budgets, every budget is difficult and complicated, but every budget approval has layered on additional full-time employees and new programs or services (for the city), which all have an operating impact on future years to come,” Hill said.

“I haven’t supported the last six (budgets) for sure at budget time, because what’s been happening at those budget deliberations has not been sustainable. We cannot be everything to everyone because we’re a municipal government,” Hill added. “We don’t have the revenue streams and resources to enable us to get into the areas of social services and affordable housing – those are not our responsibility. We need to get back to providing the basic services to the citizens of Saskatoon, which is our top priority and responsibility.”

Kirton and Hill were pleased that they’re dealing with this issue right away through a couple of special meetings to figure out what to do next as opposed to at budget time in the winter.

Kirton knows cuts will need to be made, but mentions councillors need to make sure core services will stay intact.

“We can’t stop these core services. We need to continue that. Right now, for instance, there’s the program for roadways and sidewalks to be prepared in a 20-year cycle,” Kirton said. “I’m just spitballing. I have no idea what we’re going to do, but we might have to turn that 20-year cycle into a 25-year cycle as part of the answer in getting this down to an acceptable mill rate.”

“(The cuts) are going to be depending on what services we’re talking about and that’s where the challenges are going to be. I think a lot of city councillors might have their heart set on this particular plan or program and that’s where we’re going to face some challenges,” Kirton added. “I think cutting services that are not core services is what’s going to make a difference here.”

Hill was vocal when asked about what he wanted to do.

“This budget, I can tell you we’re an administration heavy within our municipal operation. We have more employees per capita than any other municipality I’ve reviewed in Canada,” Hill stated. “And I don’t mean our frontline workers, the people out there picking up the garbage and making sure the waters running. I mean all of our layers of supervisors and middle management and upper management.

“Those all need to be reviewed. They weren’t reviewed at COVID time like when all the private sector did their review of their operations – and we missed the opportunity to do it then.”

The first special budget meeting is scheduled to take place June 21.