Municipalities of Saskatchewan in search of interest-free funding from the province

The Municipalities of Saskatchewan (MOS) has pitched an idea to the province which would allow municipalities the opportunity to borrow funds interest-free, so they can keep up with the financial demands of the COVID-19 global pandemic.

President of MOS, Gordon Barnhart told 650 CKOM Tuesday that the fund would allow municipalities to borrow in the case of deferred property taxes or low operating expenses.

“In the meantime, those municipalities are still having to pay the cost of the vital services, like salaries,” he said.

“The municipalities could make a loan on (the deferred taxes) on a short term basis. It would all be paid back when the taxes come in, but the municipality wouldn’t be out the interest in the meantime.”

Barnhart said municipalities are required by law to balance their budgets every year, according to the Cities Act legislation.

Barnhart said there is no room to borrow for some municipalities, with some already borrowing all that they can from municipal finance options. He used the example of large infrastructure projects that need to be paid as reasoning for the lack of borrowing power.

Barnhart said he is expecting a decision from the province within the next “couple of weeks,” but noted that there are other things the government is dealing with at this time.

“So I can’t predict (a timeframe). I’m just very hopeful that (the decision) will be sooner rather than later.”