An official with the Saskatchewan Urban Municipalities' Association (SUMA) says Weyburn and other communities will be hit hard when SaskEnergy and SaskPower stop paying grants in lieu of taxes.

The move was included in the provincial budget which was tabled in the Saskatchewan Legislature on Wednesday.

The Mayor of Torquay, and SUMA Vice President for villages, resort villages, and the north, Mike Strachan, has been studying the provincial budget.

He says it includes a provision that allows the crown corporations to stop paying grants in lieu of taxes. "Some of the cities and some of the bigger towns that are going to take a hit after this budget, and for Weyburn, what it means, for grants-in-lieu being cut, is $765,715.00 that they won't be receiving this year in their budget." Strachan told Discover Weyburn.

Strachan notes that province-wide, the cancelled grants will cost municipalities $36 million.

"Government needs to start consulting with municipalities before they start putting these on the table, because, like I was just talking to the Mayor of Yorkton, and for Yorkton, it's going to be about an 8 per cent increase for property taxes alone, so this is a big issue for our residents." Strachan added.

Even though municipalities have been receiving grants 'in lieu of taxes', Strachan says there will be no taxes forthcoming when the grants stop. "From what I understand, they will not be paying taxes. Governments don't usually pay taxes to governments, so there'll be no funding."

"So it's quite a bit hit for Weyburn" he concluded. "And, with no consultation from the provincial government at all on this."

When contacted by Discover Weyburn Friday afternoon, Weyburn Mayor Marcel Roy said he is looking into the situation, and will have a response later.

To see a breakdown of the estimates this will cost cities, provided by SUMA vice president Mike Strachan, click here.