Saskatoon property taxes to remain at 3.87 per cent in 2021 pending city council approval

Property taxes for Saskatoon residents will remain the same as previously approved.

That’s even though next year’s operating budget plan, which was approved in principle back in Nov. 2019, has seen an increase of $21.76 million, mainly because of COVID-19 related costs.

As part of that 2019 budget approval process, council approved a 3.87 per cent property tax increase in 2021.

It amounts to about $6.31 per month, or $75.74 per year, based on a home with a value of $371,000.

Chief Financial Officer Kerry Tarasoff says to keep the property tax increase the same, administration had to adjust the budget and submit a new proposal for city council’s consideration and approval.

“The administration is proposing a significant adjustment of just over $19 million dollars to the operating budget, mostly due to the pandemic, which will be offset entirely by the federal ‘Safe Restart’ unconditional funding that the city has received, which will preserve the original 3.87 per cent.”

He says it was a painful exercise to go through, knowing the COVID-19 impacts would be significant.

“Our revenues due to COVID-19 for 2021 alone are impacted by over $23 million, and another $13 million mostly in the utilities area, due to permanent reductions in usage. In total, there was a net $21.8 million gap from the original budget.”

Tarasoff says the $2.7 million difference left over, is being offset by reductions in hiring, travel, fuel, and training budgets.

However, he says there are still many assumptions built into the 2021 estimates.

“The hope of a vaccine that could start moving us back toward a normal lifestyle may have some positive outcomes. Federal assistance in 2021 is still a possibility, knowing that in 2020 cities across Canada received help under the ‘Safe Restart Program,’ and almost every city is reporting COVID impacts into 2021 and beyond.”

If there is no federal funding next year, or revenue improvement if a vaccine becomes available, Tarasoff says the city can still dip into its reserves, however, it’s something they are reluctant to do.

City council will meet Dec. 2 and 3 to discuss and debate and ultimately decide whether to accept the revised proposed budget