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.

Big-spending Atchison raises taxes 22% yet can’t afford recycling

The StarPhoenix reported yesterday on the deplorable state of Saskatoon’s recycling. Saskatoon and Regina are the only major centres on the continent without a blue box recycling program, and our landfill is filling up.

But Mayor Atchison rejects city recycling, claiming it would be a formula for increases in homelessness and taxes on seniors.

Of course, the story and the subsequent reader comments reveal Atch’s anti-recycling stance to be laughably rife with economic and environmental folly.

But even more laughable is Atchison’s audacity to champion homelessness and taxes: Under Mayor Atchison, not only has homelessness expanded, but taxes have risen 50% faster than inflation.

Given big-spending Atchison’s embarassing inaction on recycling and homelessness, combined with his out-of-control tax hikes, this newfound concern is suspect at best.

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?

Atchison’s “goal”: Dupe voters through crafty words

On October 17, 2003, The StarPhoenix reported that Don Atchison “would freeze civic taxes in the first year.” In fact, Saskatoon’s media widely reported Atch’s no tax increase platform during the 2003 election campaign.

Of course, we all know how well that turned out:

Year / Tax Increase
2004 - 3.24%
2005 - 3.94%
2006 - 1.86%
2007 - 4.76%
2008 - 5.44%
2009 - 2.87%

That's a combined mill rate increase of 22.1% under Atchison.

More interesting is how Atchison later justified his tax increases:

“I didn’t promise that. I said it’s my goal.”
as quoted in The StarPhoenix, January 22, 2004

“A goal is something you want to aim for. A promise means I’m going to be able to fulfill that promise to you… I was careful never to use the word promise.”
as quoted in The StarPhoenix, March 12, 2005

Regardless of no tax increases being a “goal” or a “promise,” did anyone at the time hear Atchison jump up to correct this common interpretation of his election platform?

Thus, it would seem most prudent for voters to make it their “goal” to listen carefully to Atchison’s forthcoming “promises.” And to be safe, bring a dictionary.

Sources:
Nickel, Rod. (2003, October 17). Making a good city great: Mayoral hopeful Peter Zakreski promises changes. StarPhoenix, p. A3.
Nickel, Rod. (2004, January 24). Taxpayers face annual hike. StarPhoenix, p. A3.
Nickel, Rod. (2005, March 12). Property tax hike will sting: Increase could be seven per cent. StarPhoenix, p. A1.

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.