MONEY TALKS AS CITY WORKS ON 2018 BUDGET
Council aims to lower next year’s tax increase from 4.96 per cent in what staff says is bare-bones budget
Saskatoon city council enters its third budget talks in about a year on Monday.
Council passed the 2017 budget on Dec. 1, 2016, then opened it up again in April to make adjustments following the provincial budget in March.
Council seems intent on trying to lower the 2018 property tax increase from 4.96 per cent, although the administration depicts it as a bare-bones budget just to maintain service levels. Property tax increases have averaged 5.3 per cent over the last five years. Some councillors have warned they are prepared to make tough decisions.
Here’s what to watch:
HIGHER HIRE
Budget talks often focus on how many new employees the city intends to hire, but this year a report details the implications of a 2018 hiring freeze. Such a move would probably not net the savings envisioned by those who pushed for it: Just over $600,000 and a property tax decrease of 0.27 per cent. Still, council was split on even asking for a report, so expect a lively debate. The proposed budget includes about 30 net new full-time employees.
COP CAP
The Police Service is seeking a larger increase this year (3.25 per cent or $2.8 million) than last year (2.76 per cent or $2.3 million) even though no patrol officers are requested. That seems sure to spark more than a few questions in a city where crime always ranks high among concerns and many see putting more police on the street as the only solution. The North Saskatoon Business Association has already asked about the extra costs expected with the legalization of recreational cannabis in 2018. This year’s police budget is set at $99.4 million.
LIBRARY SCARRED
The library budget has perhaps created more controversy than any other component in the 2018 budget. The union that represents library employees says 20 positions have been eliminated this year. Proposed restructuring has concerned staff. The library charges its own property tax levy, but still needs approval from city council. The library proposes a zero per cent property tax increase, despite adding four net employees compared to last year. Council seems likely to ask tough questions, although any reduced burden on the taxpayer will be seen as welcome. The proposed library budget is set at $24.1 million with about 149 full-time employees.
SNOW JOB
One of the few areas where an increase in spending is included in the 2018 budget is snow and ice maintenance, to the tune of $1.2 million and a 0.55 per cent property tax increase. This spending was deferred in April for 2017 after the provincial budget left a gaping revenue hole. The big spending here is on 2.75 new full-time employees to fully staff two new one-ton sanders for priority streets. As for the city-wide neighbourhood snow removal that made this spending so popular, there’s still no target date. The city plans to test a neighbourhood ice rut removal program in 2018, which is supposed to help determine the “logistics” of any “future” city-wide snow removal. Unseasonably warm weather next week and a tight budget year may convince some on council to rethink this spending.
GALLERY GRUMBLES
Now that the Remai Modern Art Gallery of Saskatchewan has finally opened, the rough ride over its finances at city council are over, right? That thinking is about as realistic as the gallery’s Picasso linocuts. Next year will be the first full year of operation for the gallery, which means the cost to run it will go up, too. The gallery’s operating budget is expected to increase from $7.4 million in 2017, when it was open for just over two months, to $10.8 million in 2018. The city’s funding is slated to rise from
$5.1 million this year to $5.5 million next year. The gallery plans to raise nearly half of its operating revenue or $5.3 million in 2018.
Even the gallery’s budget document acknowledges its revenue projections are “very ambitious” and an area of “particular vulnerability.” Then there’s the $3 million contingency fund to pay for overspending on its construction — it’s actually closer to $4 million.