City council is going ahead with a plan to reduce non-profit funding despite criticisms from arts and culture groups.
At a recent meeting, council approved a new Financial Assistance Policy, which changes how non-profits get financial assistance from the City and will ultimately reduce the overall funding available.
The policy aims to provide $2.87 million in grants, leases, and facility rentals to non-profit organizations.
The city says the policy comes as they have been funding $3.3 million in grants, leases, and permissive tax exemptions per year, which if taxed, could be equal to an eight percent property tax increase for homeowners.
Councillors defended the decision, pointing out the city is struggling to keep next year’s tax increase as low as possible. The public gallery was full of arts and culture supporters concerned about the new policy, and at one point Mayor Kermit Dahl had to threaten to recess the meeting if they didn’t calm down.
Coun. Susan Sinnott says there will be a year before reductions take effect, and there’s an opportunity in the meantime for the city and community groups to prepare for the future.
“We have to balance really tough decisions,” she says. “These don’t come to us because they’re easy, they come to us because they’re tough, and I appreciate you all being so passionate and interested, and I look forward to hearing your ideas going forward to help us make those tough decisions.”
Coun. Doug Chapman pointed out the city’s economy continues to struggle to deal with the decline in forestry, aquaculture, and mining in the region, which has impacted the city’s tax revenue. He points out funding levels for non-profits were set when the local economy was in better shape.
“We are losing so much income in the community that we do have to be aware and be on guard that we cannot continue in the same fashion we have in past years,” he says.
Council recently made $1.2 million in budget reductions to stay within its financial stability policy, which limits tax increases to under 3.5 percent.
The City says the new policy comes into effect in 2026, with no impact for non-profits in the new budget.
— With files from Grant Warkentin
