Huge Saskatoon budget funding gap reduced by another $3.7 million

The City of Saskatoon’s massive funding gap for 2024 and 2025 is slowly shrinking.

Before special budget meetings began in June and some savings were found, the city was facing a $52-million funding gap for 2024 and a $23.2-million gap in 2025. That news prompted anger among many people in the city.

That originally equated to an 18.56 per cent property tax increase in 2024, and 6.95 per cent the next year.

Administration found about $1.5 million in savings in July. At the second of three special budget meetings, councillors reduced the gap by a further $21.6 million in 2024, and by another $1.6 million for 2025.

Kari Smith, the city’s director of finance, said as the budget process plays out, administration is refining its estimates. Now, before next week’s third special budget meeting, the 2024 estimate has been reduced by $3.058 million to $26.2 million. The 2025 estimate has been reduced by $725,000 to $19.3 million.

That means the property tax increases are now estimated at 8.92 per cent for 2024 and 6.01 per cent for 2025.

“A couple of the things that we have updated on this report is an increase to the expected provincial franchise fee revenue … and then expected transit revenue. So that appears to be recovering faster than we originally anticipated,” explained Smith.

She said provincial franchise fees are basically grant payments from the province in place of property taxes. “Finding” more savings is all part of the budgeting process throughout the year.

“Our budget projections are made quite early in the year, so as time progresses, we get more information,” Smith added.

Smith said councillors will again go through a series of reports with savings options recommended by administration. They’ll then decide whether they want to accept those options.

Those ones that are accepted will then be recommended to city council during budget deliberations in late November.

The next special budget meeting is to take place Tuesday. Any member of the public who wants to address councillors and administration at the meeting, or who wishes to submit a letter, needs to register or submit their letter by Monday at 5 p.m.