Yorkton Mayor Bob Maloney remains optimistic the province will maintain the current formula for transfers to municipalities.
Premier Brad Wall has stated the formula for transfers to municipalities could change as the province faces a tighter budget in light of falling oil prices. Revenue shared with municipalities has been based on PST revenue to the province.
Maloney said it was the key issue as the Saskatchewan Urban Municipality Association held its 110th Convention in Saskatoon.
“The Premier is still saying they’re in the budget process, and everything is still on the table,” he said. “… He says it’s a last resort, but isn’t ruling it out.”
The reason the province is facing difficulty choices in terms of its upcoming budget is low oil prices. Maloney said the drop in oil is being projected as a $500 to $800 million shortfall on the revenue side.
“That’s significant money in Saskatchewan,” he said.
Maloney said municipalities like the current funding arrangement as it has become a reliable formula local budgets can work off. In Yorkton the revenue sharing amounts “to about $3 million of our budget,” he said. “So that’s significant.”
The provincial government is expected to distribute $257 million to municipalities for the 2014-15 fiscal year.
Maloney said he hopes the system stays as is.
“We really like the revenue sharing deal. I think it was revolutionary for the province to bring it in,” he said. “… We are the envy of every other municipal group across the country. Nobody else has the deal we have …
“I would hope they would stick with the deal.”
The other big issue at this year’s SUMA convention was multi-material recycling.
“It’s basically fallen off the table,” said Maloney.
The firm the province was looking at to operate the program has said it requires far more buy-in from business to make it viable, said Maloney, who added only about 20 per cent of business was on-side.
“They need a much higher participation,” he said.
With no provincial program, Maloney said the impact will be felt locally. As it stands 33 communities and municipalities haul their garbage to Yorkton. Each one has some level of recycling in place. Where those efforts go without funding and an over-arching provincial plan is unclear.
“That’s going to be a big one,” said Maloney, adding there needs to be another agreement in place soon.
