City hiring freeze could save $600K, reduce taxes

A possible hiring freeze at Saskatoon city hall in 2018 would save more than $600,000 and reduce the property tax increase by 0.27 per cent, a city report says.

The report from city administration notes that of the nearly 37 new full-time employees proposed in the 2018 budget, most of the estimated $3 million cost for the new workers comes from sources other than property tax.

So a hiring freeze in 2018 would reduce the operating budget by $605,300 and lower the proposed property tax increase from 4.96 per cent to 4.69 per cent, the report says.

However, it warns of the ramifications of a hiring freeze.

“It is important to note that there could be corresponding impacts on service levels and additional costs in relation to these reductions,” the report says.

Although the preliminary budget proposes 37 new positions, the city also expects to eliminate seven fulltime positions in 2018, mainly due to increased automation, such as online sales of event tickets. That leaves a net increase of about 30 new employees, the report says. Of the $3-million cost of the new employees, $2.48 million comes from sources other than property tax.

City council voted 6-5 to approve Coun. Randy Donauer’s request for a report on the implications of a 2018 hiring freeze.

Some councillors argued against the focus on full-time employees; Donauer countered that he has heard from residents who find a property tax increase of just under five per cent excessive.

The administration reduced the preliminary property tax increase from near seven per cent to where it sits heading into Monday’s budget talks at 4.96 per cent, but has said the increase is necessary just to maintain services at the same level as in 2017.

The city is still trying to address revenue shortfalls from the province, which were first introduced in the Saskatchewan Party government’s March 22 budget.

The report says new employees respond to different needs, such as maintaining new park space and increasing the level of snow and ice management. Two graphic designers have been proposed for 2018 to reduce the need to hire outside contractors and ultimately save money, the report says.

The city added about 47 new full-time positions this year, 12 in 2016 and 64 in 2015.