Saskatoon financial officer: City faces ‘same challenges’ as citizens

The City of Saskatoon’s proposed budget for the upcoming year has been adjusted to include a 5.84 per cent property tax hike.

According to the city, the tax increase — adjusted up slightly from the 5.64 per cent increase approved by council in 2023 as part of its multi-year budgeting — is needed in order to keep pace with Saskatoon’s growing population, rising demand for services and increases in the costs of construction, materials and contracts.

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“Saskatoon is experiencing its fastest growth in over a century, adding more than 26,000 residents in just two years, and reaching an estimated population of 308,000 in 2024,” the City of Saskatoon explained in a statement.

“This rapid growth, coupled with a strong labor market and one of Canada’s lowest unemployment rates, has driven unprecedented demand for City services.”

In a telephone interview, Clae Hack, Chief Financial Officer of the City of Saskatoon, said while he understands the financial pinch that home and property owners, and businesses are facing, the city is also facing the same challenges.

“You see it all across Canada right now. These inflationary pressures and growth pressures are not unique to Saskatoon. You’re seeing difficult conversations being had, you know, all across Canada in relation to the budget,” he said.

The vast majority of budget dollars, he explained, are already allocated to core services like police, fire, transportation and transit services.

“So the conversation we’re trying to have with city council and community is what’s the cost to continue maintaining those services. And when you look at our spending over the last couple of years, it definitely has gone up.

“But when you compare that spending to inflation and growth pressures over the last five years or so, our spending increases have actually fallen well below the growth and inflation percentages that we’ve been experiencing as a community,” he added.

Hack said the city is doing the best it can to balance the best it can to balance cost with people’s needs.

City council and the city’s newly elected mayor Cynthia Block, will review the proposed budget starting on Monday.

“Council will have the opportunity to refine and adjust the proposed 2025 budget to address emerging priorities,” Kari Smith, Saskatoon’s finance director, said in a statement.

“This ensures we remain flexible and responsive to the needs of our growing city.”

The planned increase to property taxes follows a property tax hike of 6.04 per cent imposed on residents in 2024 and a 3.93 per cent increase in 2023.

The 2025 budget focuses on transportation, policing and fire services, the city said. In total, tax-supported operating expenses are projected to rise by about six per cent in the coming year (which the city said works out to about $35 million).

“Thus, the adjusted 2025 Budget proposes a 5.84% property tax increase to maintain service levels, fund strategic initiatives, and importantly, to help the City balance the operating budget, which it must do by law,” the city noted.

“Despite the proposed property tax increase, the City of Saskatoon has among the lowest property tax levels for both residential and non-residential properties in Canada.”

But despite the need for new services, many residents in Saskatoon and across the province are struggling with high inflation and a skyrocketing cost of living, contributing to an affordability crisis.

Editors Note: This file was updated at 4:12 p.m. on Nov. 26 to add in an interview with Chief Financial OfficerClae Hack.