A proposal for Saskatoon to borrow money to cover the cost of snow removal isn’t sitting well with councillor Darren Hill.
On Tuesday councillors will consider whether to go ahead with a city administration plan to take out a loan to pay for the removal of the 34 centimetres of snow that fell at the end of December.
“It's alarming that we are not better planned for this,” said Ward 1 Councillor Darren Hill.
City administration says the price tag for carting the piles of snow could run as high as $20 million.
Council opted not to fund the emergency snow removal plan during budget talks.
Four options are on the table for how to pay for the snow removal.
City administration is now recommending that council borrow the money to pay for the immediate cost of snow removal, and then add the cost of repayment to property taxes while building in base funding to ensure there is money available for future weather events.
“I just always get upset when one of the first responses in an administrative report is to increase property tax,” said Hill.
The report says the city could add a levy of 0.75 percent to property taxes each year for four years starting in 2024.
The proposal estimates a final cost of $14 million on the loan, assuming 5 per cent annual interest.
