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The City of Saskatoon has released its preliminary two-year budget — and it could see homeowners digging a little deeper into their pockets over the next couple of years.
The operating budget proposes property tax increases of 3.51 per cent in 2022 and 3.14 per cent in 2023, lower than the initial projection of 5.97 per cent and 5.42 percent, respectively.
For someone with a home that averages around $344,000, it means paying $67.29 per year, or $5.61 per month, in 2022. In 2023, it’s slightly less at $62.33 or $5.19 a month.
That will bring in $9.3 million to city coffers in Year 1 and $8.8 million in the second year of the budget.
Chief financial officer Clae Hack says there were four key themes this year.
“(One is) a transparent budget and budget process,” Hack said. “Two is balancing COVID impacts, three is maintaining core services and four is continued focus on savings and efficiencies.”
Because less revenue is coming in from areas like transit, parking fees and fines and penalties and more money is being spent on cleaning and personal protective equipment, the COVID-19 pandemic continues to have an impact on the budget.
In 2022, the city is projecting a $13.85-million deficit, and in 2023 it could be just over $10 million.
Cities in Saskatchewan aren’t allowed to run deficits, so the money is coming from “one-time funding” from the Investing in Canada Infrastructure Program that city council reallocated in late October.
Hack says right now the city is just looking at the next couple of years to see whether the pandemic stabilizes.
“To be honest, even in 2023 our budget allows for mid-cycle estimates, so if we see significant changes to the impacts of COVID whether positive or negative on our budget, we’ll probably present those in 2023 as adjustments,” Hack said.
“Certainly in 2024 and beyond we’ll have to assess what our economic reality looks like and present options and recommendations as we move forward.”
Right now, the 2022 operating budget is pegged at $566 million, a 3.54 per cent increase over last year’s budget. The Saskatoon Police Service budget makes up about 21 per cent of that total. The 2023 budget is expected to be around $581.3 million.
The total 2022-23 capital budget proposal is $571.9 million.
Saskatoon city council will go over the budget from Nov. 29 through Dec. 1. Changes to property tax rates and budgets can be made during that time.
