Provincial cuts, downloading costs Saskatoon $59M, city says

A report by the City of Saskatoon says provincial downloading and cuts will have "substantial financial implications" for Saskatchewan's biggest city.

It states provincial cuts this year combined with direct and indirect downloading of costs adds up to nearly $59 million.

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City councillors asked officials to compile the report on March 26, after the province announced it would no longer paythe citygrants in lieu of taxes for service to provincial property within city limits,such as theSaskEnergy and SaskPowerbuildings. That comes out to $11.4 million.

The Saskatoon Public Libraryhavealso lost $650,000 in provincial funding. In turn, Saskatoon's libraries have announced they will no longer participate in the inter-library lending system.

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Provincial contributions to the West Nile virus, mosquito control, and Dutch Elm Disease programs totalled $292,500. The city must now decide whether to continue to pay for the programsor to scrap them.

Mike Jordan, the City of Saskatoon's director of government relations, said those costs have "substantial financial implications."

More costs for Saskatoon taxpayers

The report also highlights how the city is out money for giving a helping hand to the province. For instance, it shows land set aside by the City of Saskatoon for the Urban Highway Connector Program is valued at $25 million.

Plus, the city agreed to lease land for eight new publicprivate partnership schools to the province at a nominal rate. Monday's report indicated that land has a market value of $20 million.

Councillorsare now considering charging the province higher rent.

Direct transfer payments from the provincial government to the City of Saskatoon averaged about 12.3 per cent of the city's operating costs between 2006 and 2015. The report notes those transfers hit an all-time-high as a percentage of city revenue in 2011.

Those include money for policing, transportation services, and a one per cent share of the provincial sales tax.

Transfer payments from the province to build capital projects averaged just over six per cent of all Saskatoon's capital budget revenues between 2006 and 2015.

Saskatoon city councillors will meet Monday afternoon to discuss the report and its implications.