City tables preliminary multi-year budget with tax increases of 3.23 per cent and 3.54 per cent

Saskatoon’s first preliminary multi-year business plan and budget highlights investments and service levels, with a focus on future growth.

With those focuses, it was determined that municipal property tax increases in 2020 (3.23 per cent), and 2021 (3.54 per cent) would be needed to ensure a balanced budget. Those increases resulted in an approximate increase of $60.95 per average household in 2020, and $66.83 in 2021.

The property tax increases would generate an additional $7.9 million in 2020, and $8.7 million in 2021 for the city.

Clae Hack, the City of Saskatoon Interim Chief Financial Officer, said they did their best to balance both maintained services, and also keep a manageable property tax increase for residents.

“(They’re not) always the ideal property tax target for everybody, but we are faced with many challenges in maintaining services,” said Hack.

The property tax increase is lower than the 4.5 per cent instituted in 2019, and 2018’s 4.7 per cent hike.

The multi-year balanced budget equation translated to expenditures of approximately $37.6 million, waste deficit and organics program set at $4.9 million, and a revenue estimate of $22.7 million. The funding gap was originally set at $19.8 million for the multi-year budget.

“In 2020 and 2021, 0.87 per cent of the property tax increase in each year is dedicated to phasing in funding to implement a curbside organics program, as well as correcting the waste handling services base budget deficits we’ve been facing over the last couple of years,” said Hack.

Nothing is solidified until Saskatoon city councillors go through the budget line-by-line from Nov. 25-27. They have the power to reduce or expand the individual terms.

The preliminary multi-year budget accounts for just over $4.5 million more added to the Saskatoon Police Service (SPS) in 2020, indicating over $3.8 million towards staff compensation and over $1.9 million asked for new equipment from Capital Investments. Three police officers were added last budget cycle, but five support staff were incorporated for 2020.

In 2021, over $4.36 million is asked for by SPS, which translates to over $3.1 million for added staffing costs and just under $2.7 million for equipment from Capital Investments. Four police officers were added into the preliminary budget for the year, with one full time and one part time support staff add.

The 2020 and 2021 Operating Budget purposed total expenditures of $530 million and $548.3 million, respectively. That totals investment increases of $19.6 million in 2020, and $18.4 million in 2021.

Municipal User Fees had a slight bump, mainly for Forestry Farm Park & Zoo passes. Family Season Passes will increase by $5 both years — $85 in 2020, $90 in 2021. Season passes jumped 6.3 per cent for Adult, Youth, and Family Season Passes.

Residential Recycling also increased in the preliminary budget. A 30.6 per cent increase for residential recycling amounts to $7.38 per month in 2020, and a $0.09 increase in 2021.

The Utilities Business Line is proposing a 3.1 per cent and 3.8 per cent expenditure increase over 2020 and 2021.

In 2020, an additional 58.8 new full time jobs were asked for, and another 40.5 in 2021. That would bring the total amount of full time employees for the city to 3,995.9 at the end of 2021.

Big Expenses

In terms of Capital Investments, none was bigger than the Saskatoon Public Library’s ask of $152.9 million. $200,000 would go to equipment replacement, while the remaining $152.7 million heading to the new central library construction. The ultimate decision will happen during budget deliberations by council.

“At the end of the day, the decision is theirs. We’ll update the approved budget based on any decisions that they make at that time,” said Hack.

Proposed expenditures were led by the SPS, with operating costs of just over $109.6 million in 2020, and just under $114 million in 2021. Transportation also accounted for a large portion, with just under $84.3 million in 2020 and just over $86.1 million in 2021.

There will be no increases to transit fares over the duration of the multi-year budget.

The Downtown Arena was not reported in the preliminary Capital Project Details, but a report detailing the project was. The report would be cost-shared between TCU Place and the Sasktel Centre for $325,000.