'This is a spending problem': Saskatoon business leader calls for 'mid-management' job cuts at city hall

The head of Saskatoon’s chamber of commerce responding with frustration to the city’s announcement of a $75 million deficit over the next two years — and the tax hikes that will likely be needed to help makeup some of the the shortfall.

The head of Saskatoon’s chamber of commerce responding with frustration to the city’s announcement of a $75 million deficit over the next two years — and the tax hikes that will likely be needed to help makeup some of the the shortfall.

“I think we had all started to prepare for the idea that the city was facing some sort of deficit, some sort of fiscal gap heading into this next two-year cycle and by most accounts that was going to be in the 10 to $15 million range,” CEO of the Greater Saskatoon Chamber of Commerce, Jason Aebig told CTV News.

“I think the numbers released [Wednesday], were characterized by the CFO of the city himself as 'unprecedented' is a massive number.”

On Wednesday, the city's Chief Financial Officer Clae Hack warned that without spending cuts, a nearly 19 per cent tax increase would be needed to foot the bill. In a presentation to news media, Hack floated potential property tax increases between six and 13 per cent, with each level still requiring the city to find millions in savings.

Mayor Charlie Clark said the funding gap was a combination of inflation and less revenue.

“We're seeing a 30 per cent on average increase in the contracts,” Clark told CTV Morning Live on Thursday. “Thirty million of that funding gap is just [because] our buying power is reduced.”

He also said revenue has not bounced back from the pandemic, which means the city has less money to work with.