The Saskatchewan government has capped the grants-in-lieu reduction to municipalities at no more than 30-per-cent of the amount the municipality receives in revenue sharing.
However that doesn’t solve the problem many municipalities are still facing, according to Regina Mayor Michael Fougere.
Fougere said the city of Regina will still be forced to come up with an additional 11-million dollars they did not budget for, as they are not included in the grants-in-lieu cap.
Instead of the 30 per-cent cap, Fougere said he and many other mayors would like to see a plan implemented that still allows them to help the province out, but at the same time treats every municipality equally.
“They themselves should be looking at the broadest based treatment, so everyone is treated fair and equally, and they know this is not the case. We don’t ask them to structure our budgets, we don’t structure their budgets. They should not be telling us what to do,” Fougere said on Friday.
As a result of the grants-in-lieu reduction, Regina city council has scheduled a special meeting on April 10th where they will essentially re-do their 2017 budget.
The province has said cities with larger reserves like Regina and Saskatoon can simply use that reserve money this year, and then budget accordingly in 2018.
Something Regina does not want to do, stating reserves are intended as rainy day funds.