Final Saskatoon surplus projections to come in spring

Don’t hold your breath for a property tax rebate or reduction on Saskatoon’s property taxes any time soon.

During recent budget deliberations, Saskatoon’s city council approved a 6.04 per cent property tax increase for 2024, and a 5.64 per cent hike in 2025.

During the city’s Governance and Priorities Committee meeting on Tuesday, city manager Jeff Jorgenson gave council an update on the status of two potential surpluses.

According to a city report, based on the third-quarter forecast for the fiscal year, the 2023 operating budget will likely show a surplus of $3 million, while the city’s utilities budget could have a $10.9 million surplus.

Jorgenson called the operating surplus “razor thin.”

“As council and the public well understand, one heavy snowfall can turn a surplus of that size into a deficit,” he said.

He also told councillors that the vast majority of the utility surplus is related to water and sewer utilities, which amounts to about $9 million.

In any event, he noted, the final numbers won’t be calculated for months.

“These are forecasts,” he said. “We won’t know the 2023 results until the year-end closeout process is complete. We typically report that in March or April.”

If the projections hold, Jorgenson said council would make a decision at that time about where the money will go.

“At that time, administration will make a recommendation,” he added, noting that the city is carrying a $111-million debt for utility projects.

At this point, he said, using the money from the water and wastewater utility surplus as a rebate will not be recommended.

“Thirty-five per cent of that would be related to SaskWater, industrial and commercial, University. So the remaining 65 per cent would be for residents, and if you divide that by the population of Saskatoon, it would equate to about a $20-per-person rebate,” he said.

Ultimately, he said, it will be council’s decision to make in the next several months.