Atchison hides behind stale-dated credit rating

Mayor Atchison likes to tout Saskatoon’s AAA credit rating.

However, that was last year's rating. And a year is a lifetime for big-spending Mayor Atchison.

In the last year alone Mayor Atchison nearly doubled Saskatoon’s civic debt, from $89 million to $156 million.

This of course is typical of Atchison's out-of-control spending. Since he was elected, Atch quadrupled Saskatoon's interest charges, sextupled the public debt, and ran four consecutive deficit budgets. All while raising taxes at a rate 50% above inflation.

Yet Atchison is still itching to spend more, such as his $58 million art gallery nobody asked for.

What does all this mean for Saskatoon’s AAA credit rating?

In an interview with the Globe and Mail, Standard & Poor’s credit analyst Stephen Ogilvie said the keys to strong municipal credit ratings were “low debt, lots of cash in reserves, strong operating performances and generally good conservative management.”1

Let’s quickly review Mayor Atchison’s fiscal management for 2009 against this criteria:

• Low Debt - Atchison doubled Saskatoon's debt.


• Lots of Cash in Reserves - Atchison bled dry Saskatoon’s rainy day fund.


• Strong Operating Performances - On Friday, the Frontier Institute reported that Saskatoon scores the worst in providing data to even properly assess performance.


• Generally Good Conservative Management - You be the judge.

When credit ratings go down, borrowing costs go up. And when borrowing costs go up, taxes rise.

A new credit rating is coming. And things aren’t looking rosy for Atchison’s debt-laden Saskatoon.


1 Tavia Grant. (18 March 2004). S&P rates Canadian municipalities tops. The Globe and Mail, B11.

Atchison's $12 million interest payment

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.

Atchison prepares to blow $58 million on art gallery nobody asked for

At the first mayoral debate of the civic election, Mayor Atchison attempted to defend his out-of-control spending that has buried Saskatoon in a $156 million hole of debt:

“I find it quite amusing when people talk about spending on projects ’cause they think they can do a better job of it. I’m always curious to know what people would leave behind. Would you leave housing behind? Would you leave transit behind? What would you leave behind?”

Seeing that he asked, perhaps one could begin by looking at Atch's $58 million plan to close the Mendel Art Gallery.

In the 1960s, patron of the arts and self-made business person Fred Mendel contributed a substantial portion of the costs for an art gallery in Saskatoon, then donated 13 Group of Seven paintings to the city's new gallery.

After 40 years, the Mendel outgrew its space. To meet current and future needs, a $24 million expansion plan - approved by the board and original architects - was put forth.

However, this plan wasn't acceptable to Mayor Atchison. He wanted to spend more.

Thus, our mayor went to work undermining the Mendel board’s authority, jerry-rigging federal funding priority lists, and misleading the public.

Then, on September 23rd, Atchison announced his $58 million art gallery that nobody asked for, to be built at his mostly-empty $82 million River Landing development.

So in answer to the mayor's question, perhaps the first thing that should be left behind is The Mendel: Right where Fred Mendel intended it to be for all time, and for less than half the price.

After all, Fred Mendel put up his own money and his own art to create a legacy for Saskatoon.

Don Atchison is just wildly blowing through taxpayer money to build his.

Atchison's tax increases outpace inflation by 50%

It's no secret that Mayor Atchison didn't hold the line on taxes.

However, big-spending Mayor Atchison has been an utter failure at even holding his tax increases to the rate of inflation.

Year - Inflation(%) / Tax Increase(%)
2004 - 2.1 / 3.24
2005 - 2.3 / 3.94
2006 - 2.2 / 1.86
2007 - 3.4 / 4.76
2008 - 3.9 / 5.44
2009 - 0.7 / 2.87

Add those increases up, and you’ll quickly realize that under Mayor Atchison, Saskatoon’s property taxes are rising 50% faster than Saskatoon’s rate of inflation.

Skyrocketing taxes. Unfunded deficits. Burgeoning debt.

Just what kind of "Businessman" is Mayor Atchison?

StarPhoenix sounds the alarm regarding Saskatoon’s “seriously depleted” finances

When the StarPhoenix editorial board – traditionally a supporter of Mayor Atchison’s initiatives – sounds the alarm regarding Saskatoon’s significant deficit, you know things must be bad.

Perhaps the most frightening revelation in today’s StarPhoenix was this:

the city's revenue stabilization reserve, along with the other reserves that long have been a benchmark of the kind of prudence that had earned this city recognition and the highest-possible credit rating for strong fiscal management, have been seriously depleted in recent years, leaving little wriggle room.

While the StarPhoenix editorial attempts to spread the blame across city council for this serious financial mismanagement - a somewhat fair proposition - there has been only one man at the helm while Saskatoon’s finances fell apart: Mayor Don Atchison.

After all, a quick check of Atchison’s website will reveal that he is prepared to take credit for virtually everything that has happened in Saskatoon since he was first elected, from River Landing right down to pet spay/neuter programs.

But with no mention of Saskatoon’s burgeoning debt and depleted reserves, Atchison does not appear prepared to take responsibility for city finances.

Here are the indisputable facts:

• The city manager has confirmed that Saskatoon is running a “substantial” deficit, but cannot release the details until council meets, after the civic election
• Saskatoon’s “Rainy Day” cash reserves have been bled dry under Atchison’s leadership
• Saskatoon’s debt has increased six-fold since Atchison took office

And here’s the corker. In addition to blowing through Saskatoon’s reserves to shore up three deficit budgets in a row, property owners have faced a combined mill rate increase of 22.1% since Atchison took office.

Taxes up. Debt up. Reserves depleted.

That's Saskatoon's "Businessman" mayor.

City facing “significant” deficit, Rainy Day fund completely drained under Atchison’s leadership

The StarPhoenix reported today that Saskatoon is facing a “significant” deficit for 2009.

And who’s to blame? According to the story, none other than Mother Nature. Too much rain and too much snow has caused water revenues to shrink and snow removal expenses to grow.

That water revenues are shrinking seems peculiar, given Mayor Atchison’s “run your tap at full blast for five minutes” solution to Saskatoon’s lead-tainted water problem.

However, more peculiar is Saskatoon’s snow removal budget. In the past three years, it has been out by well over three million dollars.

Guess what? It snows in Saskatoon. Why hasn’t Mayor Atchison figured this one out?

So how will the city cover this deficit?

In past years, the city has been backfilling Atchison’s perpetual black hole by blowing through reserves. This year, the StarPhoenix reports, it can do this no more:

In 2007 and 2006, the city posted deficits of $1.4 million and $1.8 million, respectively. Last year, the deficit was $1.24 million, officially draining the city's revenue stabilization reserve.

To clarify: Mayor Atchison has burned through the city’s “Rainy Day” fund. This leaves a tax hike as the only solution.

Mayor Atchison is spending more than Saskatoon has. And taxpayers are going to foot his bill.

Atchison blows through a quarter-billion dollars on capital expenditures, ignores lead-tainted water

If the neighbourhood in which you live was built before 1949, you would be well advised to have your water tested for lead.

You see, Saskatoon has a lead-tainted water problem: A problem requiring the replacement of water pipes leading into no less than 6700 homes.

And with Mayor Atchison having found nearly a quarter of a billion dollars to blow in the city’s capital budget this year (compared to $68 million in 2003), it would seem there’s plenty of money to help citizens replace these toxic pipes.

Apparently not.

Instead, the city’s solution: Run your water at full blast for five minutes before taking a drink.

So while running water down the drain for five minutes for fear of lead poisoning, use that time to think about where Mayor Atchison’s quarter of a billion dollar capital budget went.

Because it didn’t go into sustaining key infrastructure in Saskatoon.

Experience Counts: right up to 156 million

Don Atchison’s mayoral campaign billboards boast that “Experience Counts.” Apparently with Atch’s experience, one needs to learn how to count quite high: 156 million, to be exact.

Why 156 million?

That’s Saskatoon’s civic debt forecast for 2009: 156 million dollars.

Compare that to $27 million - Saskatoon’s debt before Atch took office. Basically, in six years Mayor Atchison has grown Saskatoon’s debt sixfold. And with extensive River Landing cost overruns this year, that 156 million dollar forecast is likely low.

Atch is right: Experience counts. Now where’s his plan to count backward and pay his mess off?