Saskatoon city committee discusses 2022 snow removal debt solution on Wednesday
Global News
A $5-million allocation from the 2024-25 major capital funding plan is to go toward the response and the remaining $13 million will be repaid in phase-ins in 2024 and 2025.
Saskatoon’s governance and priorities committee meeting quickly discussed the city’s solution for its 2022 snow removal debt within 10 minutes on Wednesday.
The financial implications of the city’s 2022 emergency snow removal response totalled over $18 million.
Only $1.97 million of the response was experienced in 2022, while the $16 million of remaining work was completed in 2023.
A $5 million allocation from the 2024-25 major capital funding plan is to go toward the 2022 response and the remaining $13 million will be repaid in phase-ins of approximately $850,000 in 2024 and 2025.
“It is expected it will take 10 years to repay these costs based on the phase-in and applicable interest rate,” city administrator Clay Hack said.
If lighter snowfalls lead to a surplus in future years, the administration will look into accelerating the payments.
Coun. Sarina Gersher asked how the city plans to build up a reserve for future snow events.
Hack said the city has put aside approximately $160,000 each year for future responses, aside from debt being repaid.