Tax firm offers recommendations for Saskatoon in 2023 audit

The most recent independent audit of Saskatoon’s city finances showed some strengths – and some weaknesses.

Accounting and tax firm Ernst & Young was tasked with performing the review in August 2024, after a plan was set out and approved by the city’s finance committee in early May 2023.

According to the report, presented at Wednesday’s finance committee meeting, the objective was to assess the city’s financial health. It included comparisons with other cities like Regina, Winnipeg, Edmonton, Red Deer and several cities in Ontario.

Six recommendations for improvements were made, including the suggestion that the city establish a formal contingency reserve, and better manage and replenish the city’s fiscal stabilization reserve and snow and ice management reserves.

While the 2025 budget deliberations in early Dec. 2024 resulted in a 4.96 per cent property tax increase for 2025, another of the recommendations indicated that the city should also explore taxation alternatives in line with what other cities were already doing.

“This may include assessment of incremental property tax levies, such as a special levy on property or other type of levies or fees (e.g., ride sharing fees, land transfer tax) all of which have been implemented at other Canadian municipalities,” read the report.

It also asked the city to consider automation options and to add more modern financial planning tools to its chest, especially during budget planning.

“The process involves a large volume of manually maintained spreadsheets, and manual activities are generally both time-consuming (e.g., budget takes 9 months to prepare and publish) and prone to errors.”

However overall, Ernst & Young also indicated that the city was overall in a good financial position.

“For 2023, Saskatoon’s total debt to revenue ratio (23%) was the lowest among comparator municipalities. This can be interpreted as an indicator of the City’s strong financial position, particularly considering that the City’s current long-term debt stands at 47% of its debt limit,” it showed.

In response, city administration outlined its own set of six recommendations and agreed with the need to maintain healthy reserves. A report will be presented to council on the matter before the end of 2025.

As for alternative tax sources, administration indicated that extensive work on the matter had already been done over the last several years.

“As such, the administration recommends that rather than conduct another broad review, that the administration and City Council continue to seek alternative sources of revenue on a case-by-case basis.”

The report was unanimously received as information and will be forwarded to city council at its next meeting.

Saskatoon maintains ‘AAA’ credit rating from S&P Global

In a statement issued on Wednesday, the city said it has once again been awarded a “AAA” credit rating with a “stable” outlook from S&P Global Ratings.

The city has been at the top of the rating scale since S&P first began examining the city’s rating in 2002.

Clae Hack, Saskatoon’s chief financial officer, said it’s not something the city takes for granted.

“This rating reaffirms that the City is managing its finances responsibly as we continue to focus on planning appropriately to ensure we can meet the needs of our growing city now and for years to come,” Hack said in a statement.

Editor’s Note: This story has been updated to correct a misspelling of Ernst & Young.