The Canadian Taxpayers Federation (CTF) wants the Saskatoon city council to reveal how different funding options for the planned downtown arena and entertainment district could affect taxpayers..“If teams playing in the arena have a dip in ticket sales, taxpayers could be on the hook for a big bill,” said Gage Haubrich, Prairie director of CTF. .“City council shouldn’t be gambling taxpayers’ money on ticket sales.”.According to a consultant’s report that will be shown to the city council on September 13, a new downtown arena will require new taxes and other measures. It will explain how the arena can be funded and what benefits it will bring to the city..A new arena and entertainment district would have a price tag of over half a billion dollars..In 2018, the city council resolved that “the overall principles be to seek approaches that minimize the reliance on property taxes to pay for this arena.”.Tax increment financing (TIF), a hotel tax, and a ticket tax are among the proposed new measures..If the city approves a hotel tax, every guest who stays in a hotel or other short-term lodging will have to pay an extra charge. This means that the cost of staying in a hotel will increase..A ticket tax would increase the price of tickets for various events. The extra money would go to the government to pay for the arena. However, this creates a risk for the taxpayers if the ticket sales are lower than expected..“Facility fees rely on a sustained attendance rate, and to the extent that the attendance does not meet expectations, the City of Saskatoon may be required to cover shortfalls,” says the consultant’s report..“City council can’t bet the city’s financial future on the Blades making the playoffs every year,” said Haubrich..TIF is a way of supporting the development of the arena. The idea is that the new tax revenue from that area will pay for the arena, but if the revenue is less than expected, the taxpayers will have to cover the difference..Winnipeg used tax increment financing for the IG Field, which led to multi-million dollar costs for taxpayers..“To the extent that the TIF revenues are insufficient to cover the debt service, a city is generally required to cover the shortfall through other funding sources,” says the report..Saskatoon will face a serious financial challenge in the next few years. According to projections, the city will have a $22 million shortfall in 2024 and a $19 million shortfall in 2025. .To balance the budget, the city would need to raise property taxes by 8% in 2024 and by 6% in 2025.
The Canadian Taxpayers Federation (CTF) wants the Saskatoon city council to reveal how different funding options for the planned downtown arena and entertainment district could affect taxpayers..“If teams playing in the arena have a dip in ticket sales, taxpayers could be on the hook for a big bill,” said Gage Haubrich, Prairie director of CTF. .“City council shouldn’t be gambling taxpayers’ money on ticket sales.”.According to a consultant’s report that will be shown to the city council on September 13, a new downtown arena will require new taxes and other measures. It will explain how the arena can be funded and what benefits it will bring to the city..A new arena and entertainment district would have a price tag of over half a billion dollars..In 2018, the city council resolved that “the overall principles be to seek approaches that minimize the reliance on property taxes to pay for this arena.”.Tax increment financing (TIF), a hotel tax, and a ticket tax are among the proposed new measures..If the city approves a hotel tax, every guest who stays in a hotel or other short-term lodging will have to pay an extra charge. This means that the cost of staying in a hotel will increase..A ticket tax would increase the price of tickets for various events. The extra money would go to the government to pay for the arena. However, this creates a risk for the taxpayers if the ticket sales are lower than expected..“Facility fees rely on a sustained attendance rate, and to the extent that the attendance does not meet expectations, the City of Saskatoon may be required to cover shortfalls,” says the consultant’s report..“City council can’t bet the city’s financial future on the Blades making the playoffs every year,” said Haubrich..TIF is a way of supporting the development of the arena. The idea is that the new tax revenue from that area will pay for the arena, but if the revenue is less than expected, the taxpayers will have to cover the difference..Winnipeg used tax increment financing for the IG Field, which led to multi-million dollar costs for taxpayers..“To the extent that the TIF revenues are insufficient to cover the debt service, a city is generally required to cover the shortfall through other funding sources,” says the report..Saskatoon will face a serious financial challenge in the next few years. According to projections, the city will have a $22 million shortfall in 2024 and a $19 million shortfall in 2025. .To balance the budget, the city would need to raise property taxes by 8% in 2024 and by 6% in 2025.
