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Saskatoon councillors have some major decisions to make about the city’s finances in the wake of the provincial budget.
The budget released in mid-March contained two items that are particularly significant for Saskatoon’s bank balance: a one percent hike to the provincial sales tax and the elimination of millions of dollars in grants paid by SaskEnergy and SaskPower in lieu of property taxes.
Those two changes leave the city with a $9 million hole in this year’s budget and a $15 million shortfall every year after, according to a release issued by the city over the weekend.
Saskatoon City Council will get a look at a list of recommendations from administration on how to make up the losses at a committee meeting Monday.
Those recommendations are meant to patch the shortfall without dipping into the city’s reserves. According to the media release, they include a proposal for a 1.69 per cent property tax hike, equivalent to an extra $56 per year on a home with an assessed value of $325,000.
