MUNICIPAL AID PACKAGE

Province sets aside $300M

SASKATOON The Saskatchewan government is set to announce a major economic stimulus package that includes more than $300 million in new infrastructure spending for municipalities, Postmedia has learned.

Premier Scott Moe and Deputy Premier Gord Wyant are expected to make the announcement, which comes on top of $2.7 billion already allocated for government infrastructure projects this year, on Wednesday.

A source familiar with the package said it’s intended to address short-term infrastructure needs, get people working and relieve financial pressure.

Cities, towns and rural municipalities across Saskatchewan are staring down shortfalls caused by the pandemic, which forced the deferral of taxes and cut off revenue sources such as parking and transit.

Saskatchewan municipalities cannot legally run deficits and have tight constraints on borrowing to cover operating expenses, leaving them with few options to manage cash flow problems.

Without financial aid from other levels of government, they would be forced to make up deficits by such steps as deferring capital projects, draining reserves or saddling residents with higher property taxes next year.

The government announcement is scheduled one day after the Saskatchewan NDP called on the province to help municipalities recover from the financial shock of the pandemic.

The Federation of Canadian Municipalities has asked Ottawa for $10 billion while Municipalities of Saskatchewan is mulling making its own financial aid request of the provincial government.

Regina is forecasting revenue losses of $20.7 million by the end of September, though administrators have made up that deficit by delaying capital projects and scaling back non-essential services.

That projection does not include delinquent property taxes due in September.