City of Saskatoon bracing for budget pressures

City administration says a property tax increase is likely in 2023 due the rising cost of fuel and energy, and inflationary pressure.

The city has already approved a property tax increase of just over 3.5 per cent as part of its new two-year budget process.

But with the buying power of the dollar going down, and input costs going up, that increase likely won’t cover the anticipated shortfalls, according to a report submitted to the city’s governance and priorities committee.

City administration expects fuel to cost about $3.6 million more than previously budgeted. Every 10 cent increase in fuel rates translates to an impact of about $750,000 for city mill rate programs, the report said.

The rising cost of natural gas and electricity will cost the city nearly $2 million more than expected, according to the report.

Administration says additional funding from the province, city investment income and other sources will offset some of the cost increases.

Still, it’s recommending council approve a tax increase of just over four per cent in 2023 to cover the expected $2.3 million shortfall.

For the full range of proposed budget adjustments, see the city administration report here.