REGINA — The municipal sector has welcomed the provincial budget’s municipal revenue sharing funding, although a variety of challenges remain.
“We're very pleased about the increase to $392 million. Always needed,” said Randy Goulden, president of the Saskatchewan Urban Municipalities Association, referring to the municipal revenue sharing amount announced by the province at the SARM convention last week.
“But does that cover all the pressures and costs of our urban municipalities? No, it does not.”
Goulden said there were elements missing from the budget that could help address ongoing pressures in urban municipalities.
“We're hearing this from across the province, whether you're a large municipality, a small municipality, and no matter if you're in the north or the south or the east or the west, we're hearing the same thing. Infrastructure needs are absolutely necessary to continue to sustain and grow our communities. And it was very interesting to hear our Premier and the Finance Minister talking about all the new industries and jobs coming into our province, and we're very appreciative of that, but we want to be prepared for those. We need housing. We need infrastructure so those employees can call Saskatchewan home.”
One issue being discussed in the municipal sector is whether the funding formula should be adjusted to better reflect the needs of larger centres such as Regina and Saskatoon, both of which are facing significant municipal tax increases this year. Goulden indicated a cautious approach.
“Through the municipal revenue sharing pool, there is a distribution formula, and we're always open to reviewing that,” Goulden said.
“But we don't want to take away from one to give to the other. That's not what we're about. We know that those needs are right across the whole province, so we need discussions, and not to how to divide the pie, but how to grow the pie.”
Regina Mayor Chad Bachynski was asked whether the current model is sufficient or needs adjustment.
“I think the model itself is a good model. It's actually a model that other municipalities and provinces look to. It's kind of unique to us. And the fact that it's kind of a no-strings-attached. So the model itself is something that we're quite happy with,” said Bachynski.
"The dollar figure and how we calculate that and how we look to see what does that investment go into and what are we catching up on, I think that's the part where I think we want to have further conversations. And we are. We're having those conversations. Obviously, we went through our own challenging budget cycle, so I have a certain amount of empathy for some of the geopolitical challenges that we don't control. With that being said, we know that investing in our infrastructure helps create jobs, helps create investment opportunities for Regina and Saskatchewan.”
Criticism has been raised that the province is downloading responsibilities onto municipalities, leading to higher property taxes. Speaking Wednesday, NDP Leader Carla Beck accused the government of continuing to “download costs onto municipalities, which has resulted in higher municipal tax rates.”
Finance Minister Jim Reiter rejected that characterization during a post-budget question-and-answer event hosted by the Regina Chamber of Commerce.
“Now those of you who have been involved in municipal work, or council, or administration, know nothing is further from the truth, but people throw that around so often, and I find it just incredibly wrong, it's just simply that wrong,” said Reiter.
He pointed to revenue sharing for Regina in 2007, which was $15.7 million.
“And if you adjust that for inflation, that would mean these dollars, what the city of Regina was getting from the provincial government, revenue sharing, inflation adjusted to $15.7 (million) becomes $23 million dollars.
“The cheque the City of Regina is going to get this year from the province is $61.1 million.”
When asked about concerns that services, rather than funding, are being downloaded, Reiter said he understands the concerns but believes the province has stepped up.
“I absolutely respect that. Like I said, I come from the municipal sector. I respect the situation they're in, but I would say that the province has more or less stepped up on the municipal revenue side. The facts show it.”
On whether the funding model should be revisited to better support major urban centres, Reiter said population is already factored into the formula but noted broader considerations.
“First of all, population is part of the municipal revenue sharing formula. It's reflected in the formula. We also have to recognize while you want services obviously to flow where the population is, lots of times the revenues for the province flow from outside. For example, oil products, oil areas, services have to be provided in those areas because that's where the money comes from for things like health, education and municipal revenue sharing. So it's a balance, and periodically that formula is looked at. But I would say there the facts speak for themselves.”
NDP Energy Critic Sally Housser offered a different perspective, saying municipalities are being left to handle responsibilities that should fall to the province.
“I mean, I hear all the time the Minister and the Premier, they don't seem to be responsible for anything in this province,” said Housser.
“It's either the fed's fault or the municipal fault… I want to know what this provincial government is actually responsible for here. I never seem to get that answer. What are they actually responsible for?”
