Report says City of Saskatoon hiring freeze could ‘attract risk’

A report outlining the potential impacts of a hiring freeze in the City of Saskatoon will be presented to city councillors ahead of their next special budget meeting Tuesday.

Saskatoon is facing a $50.9-million budget shortfall in 2024, and a $23.2-million funding gap in 2025. If nothing is done to bridge the gaps, home and business owners could face a 17 per cent property tax hike next year.

The report, written by city manager Jeff Jorgenson, outlined a variety of scenarios, including what could happen if the city maintained existing service levels and did not hire additional staff.

According to the report, not adding additional staff as necessary “would put incremental pressure on the City’s ability to meet service levels,” but administrators could reassign existing staff to meet needs in each area.

However, not hiring new staff members as needed would result in a 1.5 per cent service level decrease in 2024, and again in 2025. Not hiring those workers as needed would save around $5.5 million over two years.

It’s a far different scenario if the city decided not to fill vacancies when staff leave their positions, especially if the vacancies were in key positions like firefighting, emergency management or transit.

Leaving vacated positions unfilled would save $1.4 million in 2023, $12.9 million in 2024 and $26.4 million in 2025.

“Not backfilling key positions in professional areas would in many areas attract risk to the City,” Jorgenson wrote.

For example, he explained, about 30 of the city’s 288 firefighters are expected to retire in the next two years, while up to 15 per cent of transit workers are expected to vacate their jobs during the same period.

According to the report, a hiring freeze where staff aren’t replaced after retiring or resigning would “result in a scenario where the City has little control over when and where services are interrupted … This would lead to unpredictable public service and constantly changing conditions.”

Jorgenson suggested that a more strategic approach to cuts would be more effective.

On Tuesday, city councillors will also get a look at seven other reports outlining areas where potential cuts could be made, including the fire department, community support groups, arts, transportation, environmental health, land development and taxation and general revenues.