More talk needed on grants: mayors

The mayors of Saskatchewan’s two biggest cities met with four provincial cabinet ministers on Wednesday to discuss funding for urban municipalities.

At issue is strong opposition from urban areas over the Saskatchewan Party government’s recent budget decision to impose changes to the “grants-in-lieu” that Crown corporations have paid to cities in place of municipal taxes.

That move prompted cities around the province to hold emergency meetings about their budgets, as mayors, led by Regina’s Michael Fougere and Saskatoon’s Charlie Clark, contend it is not fair for the government to redirect $36 million earmarked for cities into the province’s bank account.

Cities had already decided in their budgets what they were going to do with their portions of the $36 million, but the province is signalling it is unlikely it will be made available to spend.

“Can we safely say I can find $36 million? I’m going to say not likely,” said Government Relations Minister Donna Harpauer, who noted she will discuss the matter with cabinet.

She said she recognizes removing the grants-in-lieu funding is having a “disproportionate impact” on cities and noted that, “some have reserves, some don’t have reserves. Some have a number of services they can look to, some don’t have those options.”

Those emerging from the roughly hour-long meeting with Harpauer and others came out with the conclusion that more discussions need to take place.

Fougere suggested there needs to be a more equitable way for the province to find savings as it combats a $1.3-billion deficit, and said it is “too early to tell” what will happen now. “Our flexibility is very, very narrow compared to the province,” he said, adding the city’s next steps will be determined by Regina’s city council.

He said the city could dip into its reserves, but he is hesitant to set a precedent by doing so to balance the budget, especially because reserve money is set aside for emergencies and infrastructure projects.

Clark told reporters the biggest issue for Saskatoon is whether or not the province removing the grants-in-lieu funding is temporary or permanent.

“The biggest issue is, is this a oneyear change? Because it looks like a permanent change,” he said, adding his council will have to have serious conversations about the $11.4-million hole Saskatoon is facing as a result of the move.

Rhetoric over the issue has been heated, and culminated Tuesday with Saskatchewan Urban Municipalities Association (SUMA) president Gordon Barnhart asserting there is no longer a respectful partnership between governments.

SUMA was also considering taking the matter to court, while Saskatoon city council voted in favour of filing a court injunction to prevent the province from taking the $11.4 million of grants-in-lieu money away.

Barnhart joined Fougere and Clark in Regina for the meeting, as did Yorkton Mayor Bob Maloney (on behalf of the province’s small city mayors).