What did $12,127,700 buy Saskatoon in 2009?
Absolutely nothing. Except debt servicing charges.
You see, Mayor Atchison has been spending more than Saskatoon has. A lot more. And the interest charges are racking up:
Year / Total Debt Servicing Charges
2003 - $3,259,000
2004 - $4,238,800
2005 - $4,493,900
2006 - $4,954,200
2007 - $5,348,000
2008 - $7,593,000
2009 - $12,127,700
Source: City of Saskatoon operating budgets, 2004-2009
Under Mayor Atchison, Saskatoon’s debt servicing charges have grown to 12 million dollars a year: 10% of the city’s total property tax take.
This means that with 54,000 owned dwellings in Saskatoon, every home property tax bill could be $200 lower if it wasn't for servicing Saskatoon's burgeoning debt.
And your $200 interest payment doesn’t even put a dent into that $156 million debt hole Mayor Atchison has dug Saskatoon into.
And while this may seem troubling, the future is looking worse. With interest rates currently at historical lows, even if Atchison stops his mad spending spree - which is doubtful given his future plans such as a $58 million art gallery nobody asked for - Saskatoon's debt servicing charges are going to get a lot worse. And tax bills a lot higher.
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What happens if rates rise above 10%, anyone remember 1982? That would more than double our debt servicing
ReplyDeleteAnd the long-term problem is that we will see our city's credit rating fall. That will make it both harder and more expensive to borrow. It will, however, take several years to change -- probably just about in time for the next civic election.
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