The highly controversial and somewhat dreaded provincial budget announcement that came down on Wednesday has had local municipal governing bodies unhappy to say the least.

Cuts to the grants that are annually handed out to cities across Saskatchewan was one of the hot items that stood out, and the Energy City will not be exempt from the effects.

"We're very disappointed. Although the province had said that everything was on the table, we really didn't have any opportunity to give input or consultation on the matter," expressed Mayor Roy Ludwig.

"It's unbelievable how much they are dropping onto us."

He explained how the changes affect the city directly.

"Our municipal operating grant is about $250,000 lower than what we expected. The grant in lieu of taxes for crown properties within our city, of which we get a portion of that revenue, will be about $900,000 less. Now, because the province has already paid for the first three months before the budget came down, we will somehow have to come up with about $675,000 this year. In the future, however, that amount will be $900,000."

He noted that the budget also called for school tax increases. The city receives 50 percent of that, and loss is expected in those areas as well.

Ludwig said that they are still going over the numbers, and the decisions on how to deal with the changes will be hashed out in council.

"We will have to pass some of these hikes on. We have no choice."

He revealed that the city could be seeing as much as 15 to 20 percent increases impacting the bottom line. 

City Council will discuss at Monday's meeting on March 27 on how to proceed moving forward.