The City of Yorkton will proportionately take one of the hardest hits after the Saskatchewan budget was released last week.
According to Mayor Bob Maloney, the city will lose 58-percent of its revenue sharing.
2.3-million dollars in reduced funding is expected as SaskPower and SaskEnergy payments-in-lieu to municipalities will go directly to general revenue for the province
Mayor Maloney says the hit would leave Yorkton with a large tax increase.
“Probably in the neighbourhood of 5-percent is what we were headed towards,” says Maloney. “We’ve had 10-percent and 15-percent – but I don’t think our council would vote for a 15-percent increase. So there are some city services and things we do for our community that are going to have to fall off the plate. That’s going to be a difficult decision and one that we have to prepare our residents for.”
Saskatoon City Council is considering legal action as a last resort as that city faces an 8-million dollar gap — something Yorkton Mayor Bob Maloney isn’t ruling out.
“When we look at our provincial organization SUMA and the city of Saskatoon showing leadership on this, I think it is something our council has to look at,” says Maloney. “It’s something we have to study and see if we want to be part of it. At this point in time, when you have a contract that’s being voided, and you don’t think it’s fair, legal action is something you would have to pursue.”
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Broken down, the loss of revenue would be 1.6-million dollars for the city, 342-thousand due to reduced PST revenues, and 110-thousand due to funding cuts to regional libraries.
The elimination of the grants in-lieu-of-taxes adds another 20-thousand dollars on top of the raised 1-percent PST which will cost the city 200-thousand dollars.
Yorkton will see the highest per capita loss of revenue of any Saskatchewan city due to a larger industrial sector relative to the population.